{"id":13179,"date":"2022-07-08T12:32:53","date_gmt":"2022-07-08T12:32:53","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/nigerian-fintech-giant-flutterwave-accused-of-laundering-money-more-than-50-bank-accounts-frozen-bitcoin-news\/"},"modified":"2022-07-08T12:32:53","modified_gmt":"2022-07-08T12:32:53","slug":"nigerian-fintech-giant-flutterwave-accused-of-laundering-money-more-than-50-bank-accounts-frozen-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/nigerian-fintech-giant-flutterwave-accused-of-laundering-money-more-than-50-bank-accounts-frozen-bitcoin-news\/","title":{"rendered":"Nigerian Fintech Giant Flutterwave Accused of Laundering Money, More Than 50 Bank Accounts Frozen \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
\n<\/p>\n

\n
\n<\/header>\n
\n<\/div>\n

A Kenyan agency charged with tracing and freezing proceeds of crime said it recently obtained an order giving it the authority to freeze bank accounts belonging to Nigerian fintech Flutterwave. The agency alleges that Flutterwave is not providing merchant services as per claims, but is instead involved in money laundering activities. <\/strong><\/p>\n

Deliberate Attempt to Obscure Movement of Funds<\/h2>\n

Kenya\u2019s Asset Recovery Agency (ARA) recently received an order from the High Court to freeze bank accounts holding nearly $60 million which the agency believes to be laundered money, a report has said. Companies whose accounts have been frozen include the Nigerian fintech unicorn Flutterwave, which operated more than 50 bank accounts.<\/p>\n

According to a report<\/a> by the Star, ARA alleged that the fintech giant has received billions in shillings which were then distributed in various accounts as part of a deliberate effort to obfuscate the movement of the funds.<\/p>\n

\u201cInvestigations 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,\u201d ARA stated.<\/p>\n

Additionally, the agency alleges that Flutterwave is violating Kenya\u2019s National Payment System laws, which forbid the provision of a payment service platform without the Central Bank of Kenya\u2019s authorization. An ARA investigator, Isaac Nakitare, is reported to have obtained an order to search and inspect Flutterwave\u2019s bank accounts on April 4.<\/p>\n

No Evidence of Retail Transactions<\/h2>\n

After receiving the order, Nakitare reportedly found the fintech giant\u2019s account with Guaranty Trust Bank had close to $45 million (5.3 billion Kenyan shillings) while the company\u2019s bank account with Equity Bank had close to $12 million. According to the report, Flutterwave\u2019s account at Ecobank held millions in local currency at the time of the inspection.<\/p>\n

Besides Flutterwave, the companies whose accounts were frozen include Elivalat Fintech Limited, Boxtrip Travel and Tours Limited, Bagtrip Travel Limited, Adguru Technology Limited, Hupesi Solutions, and Cruz Ride.<\/p>\n

According to ARA, most of the money transfers were carried out in tranches of one million shillings or below. This is usually done when the instigators of the transfers are trying to avoid detection, the ARA said.<\/p>\n

The agency also insisted that, despite the claims that Flutterwave was providing merchant services, it found \u201cno evidence of retail transactions from customers paying for goods and services.\u201d It added that no evidence of \u201csettlements to the alleged merchants\u201d was found.<\/p>\n

What are your thoughts on this story? Let us know what you think in the comments section below.<\/strong><\/em><\/p>\n

\n
\n<\/div>\n
\n
\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

\n
\n
\n<\/a>
\n<\/span>
\n
\n
\n
\n<\/a>
\n<\/span>
\n
\n
\n
\n<\/a>
\n<\/span>\n<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

\n