BREAKING: CBN Directs OPay, Palmpay, Kuda Bank And Moniepoint To Stop Onboarding New Customers

The Central Bank of Nigeria, CBN directs OPay, Palmpay, Kuda Bank And Moniepointhas to cease onboarding new customers amidst allegations of involvement in illicit forex transactions.

This directive follows an investigation by the Economic and Financial Crimes Commission into illegal activities primarily linked to traditional banks, raising concerns about regulatory bias favoring established institutions over fintechs.

The Central Bank of Nigeria (CBN) has temporarily stopped four major fintech companies—OPay, Palmpay, Kuda Bank, and Moniepoint—from accepting new customers, pending investigations into illicit foreign exchange transactions linked to these platforms.

This directive has been confirmed by representatives from two of the affected companies, as reported by VerseNews and corroborated by TechCabal.

These fintech companies are under scrutiny for allegedly facilitating illegal foreign exchange activities, although insiders argue that the focus on fintechs is disproportionate.

According to sources within these fintech companies, about 90% of the implicated accounts are actually held by traditional commercial banks, raising questions about why similar restrictions have not been applied to these banks.

This situation arises against a backdrop where the Economic and Financial Crimes Commission (EFCC) has secured a judicial order to freeze over 1,100 bank accounts due to illegal forex dealings, money laundering, and terrorism financing, mainly linked to conventional banking institutions.

This Online News Platform understands that the EFCC’s ongoing investigation aims to address the misuse of cryptocurrency platforms for naira value manipulation and money laundering, with the court providing 90 days to complete the probe.

Industry insiders have expressed concerns about a possible bias in regulatory scrutiny, highlighting a stronger bond between the CBN and traditional banks compared to fintechs.

They point out that fintech platforms often have more stringent Know Your Customer (KYC) practices and are less frequently the site of significant fraud losses compared to established banks, suggesting an uneven regulatory landscape that could undermine the growth of the fintech sector.