Nairobi High Court has frozen more than Ksh8 billion belonging to Flutterwave, a firm owned by Fintech. Flutterwave is a firm specializing in individual and consumer financial transfer in Africa. Its headquarters are based in San Francisco.
The ksh8 billion was in 56 accounts belonging to Nigerians and Kenyan business people. It is alleged that the funds have been gotten from crime and money laundering. The court froze the funds after a Kenya Asset Recovery Agency request.
Fintech’s Flutterwave Has Accounts Frozen in Kenya amid Court Probe
The Ksh8 billion were held in three local banks, Eco Bank, Equity Bank, and Guaranty Bank, in Flutterwave Payment Technology Limited accounts. Flutterwave, in an interview, has confirmed owning the Kenyan-based firm but denied the allegations of money laundering.
The order to freeze the accounts will stay for 90 days through the Proceeds of Crime and Anti-Money Laundering Act. It is alleged that the firm received billions of shillings and deposited them in different accounts from a money-laundering scheme. The court also heard that the firm isn’t registered and authorized by the Central Bank of Kenya to offer a payment service platform.
Flutterwave is also accused of card fraud after doing transactions using at least 185 online cards for payments transacting lots of money from the US to Kenyan banks. Other frozen accounts were Bagtrip Travels Limited, Elivalat Fintech Limited, Adguru Technology Limited, Hupesi Solutions, and Mr. Simon Karanja Ngige, a director of the Flutterwave Firm.
Flutterwave, which is not licensed by the Central Bank of Kenya, has raised questions about how it was allowed to operate in Kenya without the knowledge of the agency. Kenya Asset Recovery Agency should therefore recover that money.