The Nigerian fintech company, flutter wave, with more than 6.2 billion shillings spread in 62 Kenyan banks has accounts frozen. On the 6th of July 2022, a Kenyan high court froze accounts belonging to four Kenyans and flutterwave allergy over money laundering and card fraud.
Other bank accounts frozen with flutterwave are that of Boxtrip travel and tours limited, Bagtrip travel limited, Elivalat fintech limited, Adguru technology limited, Hupesi solutions, Cruz ride auto limited, and one Simon Ngige. These accounts are suspected to have contributed to the success of the criminal act.
Every activity on the accounts has been halted until a petition is filed to have it forfeited to the government. The order for the freeze and closure of the account was granted after the Assets Recovery Agency (ARA) revealed to the court that the wired cash was a disguise for payment of goods and services.
Why Flutterwave Accounts are Frozen
According to ARA, the 1st recipient (Flutterwave) bank accounts received billions suspected to be money laundering, and the same was deposited in various bank accounts in an attempt to hide and disguise the nature, source, location, disposition, or movement of the funds”.
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The agency revealed that the transaction was carried out through cards issued by the same bank, on the same day, and at the same location. The sum of Sh467.1 million dollars was sent from Flutterwave to Boxtrip Travel and Tours. Boxtrip Travel and Tours is a transport company registered with a Nigerian by the name of Enyioma Olufemi Madubuike. This rang the alarm bell of a suspected card scam.
The agency further announced that the two entities lack supporting documentation to support their transaction. This made them believe that the accounts were used to move illicit cash.
Flutterwave Denies Accusation
Flutterwave in its defense says the court was wrong for freezing its account and described the allegation as a false allegation. The Nigerian fintech company said through its financial institution partners, they carry out transactions on behalf of merchants and corporate entities, where it earns profits through transaction charges.
Insisting that there are records available to verify its stand. And, its anti-money laundering operations regularly undergo auditing by one of the four biggest firms. Flutterwave further said being a business company, it holds corporate funds to support its operation and provide services to all its customers.
It said “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.
It concluded that flutter wave is a financial technology company that maintains high regulatory standards in the course of its operations.
