CBN Orders Two Banks, Payment Companies to Suspend Account Opening Over KYC Issues
- Four financial technology companies, Opay, PalmPay, Kuda Bank, and Moniepoint, have suspended account opening
- The move is in response to KYC challenges ordered by the Central Bank of Nigeria early in the year
- One of the companies said that the changes do not affect existing accounts and wallets and that customers’ funds are safe
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Four financial technology companies have suspended account openings following Know Your Customer (KYC) challenges.
Two payment companies, Opay and PalmPay, and two digital microfinance banks, Kuda Bank and Moniepoint, suspended account opening in light of the new KYC regulation ordered by the Central Bank of Nigeria (CBN).
Source: UGC
EFCC blocks accounts
The development comes two days after the Economic and Financial Crimes Commission (EFCC) blocked about 1,146 accounts in unauthorised forex dealings.
In response to the directive, one of the fintech firms issued a statement, now deleted, saying it strictly adheres to the directives of the apex bank and other regulators, recognising the importance of preserving the financial system's integrity and fostering transparent engagement.
The company stated that existing accounts and wallets remain unaffected by the recent changes and assured customers of the safety of their funds.
It said:
“Furthermore, in support of government initiatives to sanitise the financial industry, Opay and other fintechs have temporarily suspended onboarding new customers and opening new wallets.”
Blocked accounts lack KYC
According to reports, the directive was linked to KYC’s process to identify the 1,146 accounts owned by individuals and companies allegedly involved in illegal forex transactions.
Another report said a breakdown shows that 10% of the blocked accounts by the EFCC are on fintech platforms.
FG moves to merge two banks
Legit.ng reported that the National Council on Privatisation (NCP) disclosed on Wednesday, April 24, 2024, that it is considering merging the country's Bank of Agriculture with the Central Bank of Nigeria (CBN) NIRSAL Microfinance Limited.
The decisions were the recommendations made by the NCP's Committee on BOA, which were disclosed during a council meeting at the Presidential Villa in Abuja.
The decisions were the recommendations made by the NCP's Committee on BOA, which were disclosed during a council meeting at the Presidential Villa in Abuja.
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Source: Legit.ng
Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.
Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng
