Flutterwave Recovers Its Reputation as Anti-Money Laundering Accusations Lose Steam

After 12 months of turmoil with allegations linked to money laundering ring and corporate mismanagement, Nigerian unicorn flutter wave To the calm sea at last.

Kenyan assets recovery agency (ARA) accused Nigerian fintech Flutterwave of laundering money last July, but the company is ready to move forward after retracting those allegations.

In filings with the Nairobi High Court at the time, the ARA suspected fintech as a conduit for financial crimes. As a result of the unilateral order issued, 62 bank accounts belonging to his Flutterwave suspected of containing approximately $52 million in illicit funds were frozen as part of a card fraud and money laundering investigation. rice field.

ARA alleges that Flutterwave deliberately tried to conceal the movement and origin of funds passed from multiple countries to local bank accounts owned by fintechs before moving into accounts at six other companies. It was something.

In addition to this Central Bank of Kenya (CBK) imposed a trade embargo on the company amid controversy and advised the country’s banks to cut ties with fintech. This was done in a petition seeking access to frozen funds signed by 2,000 Nigerians who said the sports betting platform was defrauding them of their funds and that Flutterwave technology was processing the payments. claims to be

Fintech vehemently denies these allegations and has maintained its innocence in the matter. make a statement at the time.

“The allegations of financial impropriety involving Kenyan companies are completely false and we have records to confirm this,” Flutterwave said in its rebuttal. A financial technology company that maintains

Six months after the accusations came to light, it appears that Flutterwave’s statement of innocence was genuine.

Withdrawal of claim

Flutterwave welcomes the news that ARA has dropped its charges against fintech due to lack of evidence.

“We are delighted to have this issue resolved and to resume work with our strategic partner in Kenya. Org Benga Agboulathe fintech founder and CEO, flew to Kenya this week to finalize a resolution with CBK.

“The African fintech sector attracts considerable scrutiny and sometimes suspicion due to new entrants and an accelerating pace of growth,” he continued. Given this, we look forward to and welcome the opportunity to remain transparent about our business and work with regulators.”

Flutterwave has implemented a number of changes over the past year to ensure that its internal governance structure complies with Kenya’s money laundering laws.

This includes recent appointments. master Card Schoolmate Emmanuel Efenur I was promoted to the position of Vice President and Head of Risk for Africa.

Fintechs are also working with ‘Big 4′ accounting firms to support independent internal audit programs and have their companies’ AML and CFT policies undergo annual reviews, along with the resolution of Fintechs’ own procedures. I’m planning on going.

“At Flutterwave, we take corporate governance and transparency very seriously,” said Cathy Kinyua, Flutterwave’s East Africa Regional Expansion and Partnerships Manager. “This update should reassure our partners and stakeholders across the continent that we are complying with all Kenyan regulations and laws, as well as all other markets in which we operate.”

upwards and upwards

Following the past year of controversy surrounding fintech, Flutterwave puts this turbulent chapter in the past and prepares for the best for the future.

Fintech’s reputational recovery bolstered by newly acquired payment service provider and facilitator licenses in Egypt, switching and processing licenses Fintech received from the Central Bank of Nigeria (CBN), and collaboration with newly discovered It has been. Google Pay.

Flutterwave has also renewed its operating licenses in Tanzania and South Africa, and its IMTO license in Nigeria. In June 2022, the company announced the following personnel changes. O’neal Bambani to CFO Gourbezi Dillon as CTO.

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