Nigerian fintech firm, Flutterwave Payment Technology Limited has refuted allegations of participating in a $59 million money laundering scheme in Kenya, which resulted in the closure of the company’s bank accounts.
The Asset Recovery Agency of Kenya had informed the court that 56 bank accounts held by seven different company(ies) were being used as conduits for money laundering under the pretence of offering merchant services. The court then ordered the closure of those accounts.
“Investigations established that the bank accounts operations had suspicious activities where funds could be received from specific foreign entities which raised suspicion. The funds were then transferred to related accounts as opposed to settlement to merchants,” the ARA said.
Flutterwave had 29 bank accounts with Guaranty Trust Bank, 17 with Equity Bank, and six with Ecobank, according to the Kenyan newspaper The Star.
According to the investigators, part of the money in these accounts was moved into fixed deposit accounts.
The ARA pointed how Flutterwave reportedly provided a payment service platform without receiving permission from the Central Bank of Kenya, as required by section 12 of Kenya’s National Payment System Act. This allegedly obscured the nature of Flutterwave’s company.
Flutterwave, however, refuted all allegations and claimed that the company was the subject of untrue media accusations and misrepresentations in a statement released on Monday.
In addition, a brief description of the company’s payment procedure and its methods for collecting money across the continent was provided in the statement.
The statement read in part, “Claims of financial improprieties involving the company in Kenya are entirely false and are being circulated as part of a disinformation campaign. Flutterwave has been a target of deliberate false media reports and misrepresentations.
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“Through our financial institution partners, we collect and pay on behalf of merchants and corporate entities. In the process, we earn our fees through a transaction charge, records of which are available and can be verified. As a business, we hold corporate funds to support our operations and provide services to all our customers.
“By facilitating payments for the biggest organizations in the world and everyday businesses, we process significantly large volumes of money and contribute to growing the economy in Kenya, and the rest of Africa.”
The business further explained its function as a payment merchant in Kenya, adding that it always had its anti-money laundering procedures certified by a respectable organization that remained anonymous and that it cooperated with regulatory agencies.
“We are a financial technology company that maintains the highest regulatory standards in our operations. Our Anti-money laundering practices and operations are regularly audited by one of the big four firms. We remain proactive in our engagements with regulatory bodies to continue to stay compliant.
“Flutterwave has a responsibility to ensure the integrity of the ecosystem, and we pledge our commitment to continue to work with all stakeholders to uphold this. We are working to figure out the motive behind the publication, and have the records straightened,” the statement concluded.
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