Flutterwave Recovers Its Status as Anti-Cash Laundering Accusations Lose Steam







After a turbulent 12 months mired with allegations of hyperlinks to cash laundering rings and company mismanagement, Nigerian unicorn Flutterwave is lastly shifting into calmer waters. 

The Kenyan Asset Restoration Company (ARA) accused Nigerian fintech Flutterwave of cash laundering final July, however the firm is now prepared to maneuver ahead after the withdrawal of those claims.

In Nairobi excessive courtroom filings of the time, the ARA suspected the fintech of being a conduit for monetary crime. Because of the issued ex parte order, 62 financial institution accounts belonging to Flutterwave, which had been suspected to comprise illicit funds within the area of $52million, had been frozen as a part of an investigation into card fraud and cash laundering.

The ARA’s suspicions had been that Flutterwave had intentionally tried to hide the motion and supply of the funds which handed from a number of nations to native financial institution accounts owned by fintech earlier than persevering with on into the accounts of six different corporations.

Along with this, the Central Financial institution of Kenya (CBK) positioned an embargo on the corporate amid the controversy and suggested the nation’s banks to disengage with the fintech. This was amid a petition to entry frozen funds, signed by 2000 Nigerians, who allege {that a} sports activities betting platform defrauded them of their capital, with Flutterwave expertise processing its funds.

The fintech vehemently denied these allegations and continued to keep up its innocence within the matter via a launched assertion on the time.

“Claims of economic improprieties involving the corporate in Kenya are completely false, and we have now the data to confirm this,” Flutterwave’s counterstatement reads. “We’re a monetary expertise firm that maintains the best regulatory requirements in our operations.”

Now six months after the accusations got here to mild, it seems that Flutterwave’s assertion of innocence was in earnest.

Withdrawal of claims

Flutterwave welcomes the information that the ARA dropped the fees towards the fintech on account of a scarcity of proof.

“I’m happy to have this matter resolved so we will resume our work with our strategic companions in Kenya,” stated Olugbenga Agboola, the founder and CEO of the fintech, who flew to Kenya this week to finalise resolutions with the CBK.

“The fintech sector in Africa, with its new entrants and accelerated tempo of progress attracts a substantial quantity of scrutiny and at instances, suspicion,” he continued. “Given our personal speedy progress and standing as a primary mover, we anticipate and welcome the chance to be clear about our operations and cooperate with regulators.”

Flutterwave has instituted various adjustments over the previous 12 months to make sure the adherence of its inside governance buildings to Kenyan cash laundering legal guidelines.

This contains the current appointment of Mastercard alumni Emmanuel Efenure to the place of VP and head of danger for Africa.

The fintech can be participating with the ‘large 4’ accounting corporations to assist unbiased inside audit programmes, which is able to topic firm AML and CFT insurance policies to annual critiques along side the fintech’s personal decision of its procedures.

“We take company governance and transparency very critically at Flutterwave,” stated Cathy Kinyua, Flutterwave’s regional expansions and partnerships supervisor for East Africa. “This replace ought to reassure our companions and stakeholders throughout the continent that we have now complied with all rules and legal guidelines in Kenya, in addition to all different markets the place we function.”

Onwards and upwards

Following the controversy to encompass the fintech all through the previous 12 months, Flutterwave is getting ready to position this turbulent chapter up to now because it places its greatest foot ahead for the long run.

The restoration of the fintech’s fame is being bolstered by its newly obtained cost companies supplier and facilitator licences in Egypt, its switching and processing licence which the fintech obtained from the Central Financial institution of Nigeria (CBN) and its newfound collaboration with Google Pay.

Flutterwave additionally renewed its operational license in Tanzania and South Africa, in addition to its IMTO license in Nigeria. In June 2022, the corporate introduced the appointments of Oneal Bhambani to CFO and Gurbhej Dillon as CTO.


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