In response to concerns over money laundering and terrorism financing, the Central Bank of Nigeria has temporarily halted the onboarding of new customers for mobile money operators and fintech firms.
The Bank Customers Association of Nigeria stands behind the CBN’s decision, emphasizing the importance of stringent regulations to maintain the integrity of financial institutions.
Fintech giants, including OPay, Palmpay, Kuda Bank, and Moniepoint, are affected by the directive, which comes amidst an ongoing audit of their Know-Your-Customer processes.
While the CBN has yet to comment publicly on the matter, sources within the fintech industry have confirmed the development.
In tandem with the CBN’s action, the Economic and Financial Crimes Commission (EFCC) has obtained a court order to freeze over 1,100 bank accounts allegedly involved in illicit foreign exchange transactions.
The court order, granted by Justice Emeka Nwite, empowers the EFCC to conclude its investigation within 90 days.
The move has garnered mixed reactions, with some like Uju Ogubunka supporting it as necessary to maintain regulatory compliance and prevent disruptions to the financial system.
Conversely, individuals like Emmanuel Odunsi applaud the decision, citing concerns over lax KYC processes that have facilitated fraudulent activities.
