Bank customers are expressing concern following the Central Bank of Nigeria’s decision to prohibit mobile money operators, including fintech firms, from registering new customers. While the Bank Customers Association of Nigeria supports the directive, it has raised apprehension among users.
The directive affects prominent fintech companies like OPay, Palmpay, Kuda Bank, and Moniepoint, preventing them from opening new accounts until further notice. Sources within three major fintechs, speaking on condition of anonymity, confirmed the development to The PUNCH on Monday.
The CBN’s action is linked to an ongoing audit of the Know-Your-Customer process of fintechs amid concerns about money laundering and terrorism financing. Last week, the CBN summoned fintech heads to Abuja for discussions on KYC issues.
Although the CBN has not publicly addressed the directive, attempts by The PUNCH to reach the apex bank for comment were unsuccessful. Additionally, the timing coincides with a court order obtained by the Economic and Financial Crimes Commission (EFCC) to freeze over 1,100 bank accounts allegedly involved in illegal forex transactions.
Justice Emeka Nwite, granting the commission’s application, also allowed a 90-day investigation period. The 85-page document lists the bank account details suspected of illicit activities, as obtained by The PUNCH.
Part of the court document read, “That the applicant’s (EFCC) application is hereby granted as prayed.
“That an order of this honorable court is hereby made freezing the bank accounts stated in the schedule below, which accounts are owned by various individuals who are currently being investigated in a case involving the offenses of unauthorised dealing in foreign exchange, money laundering, and terrorism financing, to the extent that the investigation will be for a period of 90 (ninety) days.”
The EFCC, in the motion marked FHC/ABJ/CS/543/2024 dated and filed April 24 by Iheanacho, was heard by the judge the same day in the interest of national interest. “The motion was brought pursuant to Section 44(2) and (K) of the 1999 Constitution; Section 34 of the EFCC Establishment Act 2004; Section 7(8) of the Money Laundering Prevention and Prohibition Act, 2022; and under the inherent jurisdiction of the court.”
The President of the Bank Customers Association of Nigeria, Uju Ogubunka, backed the CBN’s move to suspend new account opening on the affected platforms.
He told The PUNCH that the strict regulations that govern deposit money banks must apply to fintechs, and microfinance banks in order to ensure the integrity of the financial institutions.
He said, “Anything that can disrupt the system should not be permitted. If the platforms are being used for things that are against the regulations, I think the CBN decision is OK. I don’t see anything wrong with that. It behoves on the companies now to get their KYC right.
“Let them do what they are supposed to do. KYC applies to banks and other financial institutions that deposit money. It should also apply to them so that the regulators can understand what is going on and hold them accountable.”
