The Central Bank of Nigeria has directed a ban on new registration and onboarding on mobile money operators including fintech firms. This has caused a lot of panic on the side of the customers.
The new directive from CBN will affect fintech companies such as Kuda Bank, Opay, Palmpay and Moniepoint, from opening new accounts until further notice. A recognized customers body known as Bank Customers Association of Nigeria has backed the CBN directive.
The CBN’s move was linked to an ongoing audit of the Know-Your-Customer process of the fintechs, which have been under scrutiny in recent months over concerns around money laundering and terrorism financing.
It was gathered that the CBN had summoned some of the heads of fintechs to Abuja to discuss issues around KYC last week.
The directive coincided with the court order that the Economic and Financial Crimes Commission (EFCC) obtained to freeze at least 1,146 bank accounts owned by various individuals and companies allegedly involved in illegal foreign exchange transactions.
