CBN bans OPay, Palmpay, Kuda Bank, and Moniepoint from opening new accounts

The Central Bank of Nigeria (CBN) has recently taken action regarding several mobile money operators and fintech firms. Here are the key points:

1. Ban on New Customer Onboarding:
   • The CBN has banned mobile money operators, including prominent fintech companies like OPay, Palmpay, Kuda Bank, and Moniepoint, from opening new accounts until further notice.
   • This directive comes as part of an ongoing audit of the Know-Your-Customer (KYC) process for these fintechs. The CBN is scrutinizing their operations due to concerns related to money laundering and terrorism financing.
   • Reliable sources from these fintechs have confirmed the developmen¹.
2. EFCC’s Court Order:
   • Coincidentally, the CBN’s directive aligns with a court order obtained by the Economic and Financial Crimes Commission (EFCC). The order allows the EFCC to freeze at least 1,146 bank accounts owned by individuals and companies allegedly involved in illegal foreign exchange transactions.
   • The court order grants the EFCC 90 days to conclude its investigation.
3. Bank Customers Association Support:
   • The President of the Bank Customers Association of Nigeria, Uju Ogubunka, has backed the CBN’s move to suspend new account openings on the affected platforms.

In summary, the CBN’s actions aim to enhance financial security and compliance within the fintech sector. If you have any further questions, feel free to ask!