Money Laundering Claims in Kenya False, Says Flutterwave
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Money Laundering Claims in Kenya False, Says Flutterwave

flutterwave
Nigerian fintech company, Flutterwave Payment Technology Limited, has denied claims that it was involved in a $59 million money-laundering scheme in Kenya which led to the closure of bank accounts operated by the company.
This is after a total of $52.5 million in 62 accounts linked to Flutterwave and six other companies that are recipients of wire transfers from the fintech were blocked by the country’s pinnacle court, after the agency applied to have them frozen.

In court filings seen by TechCrunch, the agency said it began investigations after suspicious activities and transactions in the six companies were flagged on suspicion that they were proceeds of crime. The agency also said that the fintech was operating in Kenya without a valid license from the country’s monetary regulator, the Central Bank of Kenya (CBK).

Flutterwave says the allegations are false.

“Claims of financial improprieties involving the company in Kenya are entirely false, and we have the records to verify this. We are a financial technology company that maintains the highest regulatory standards in our operations. Our Anti-money laundering practices and operations are regularly audited by one of the Big four firms. We remain proactive in our engagements with regulatory bodies to continue to stay compliant,” said Flutterwave in a statement shared with TechCrunch.

The ARA alleges that the funds in Flutterwave’s accounts were received from specific foreign entities and transferred to specific accounts belonging to the six companies instead of as settlement to merchants.

It said that Flutterwave’s bank accounts were used as conduits for money laundering under the guise of providing merchant services, and that the fintech had no evidence of retail transactions from customers paying for goods and services. It added that there was no evidence of settlements to the alleged merchants. The agency has petitioned the court to have the money forfeited to the government.

Flutterwave has come out to deny the fraud and money laundering claims leveled against it by Kenya’s Asset Recovery Agency, which investigates and recovers proceeds of crime.

This is after a total of $52.5 million in 62 accounts linked to Flutterwave and six other companies that are recipients of wire transfers from the fintech were blocked by the country’s pinnacle court, after the agency applied to have them frozen.

In court filings seen by TechCrunch, the agency said it began investigations after suspicious activities and transactions in the six companies were flagged on suspicion that they were proceeds of crime. The agency also said that the fintech was operating in Kenya without a valid license from the country’s monetary regulator, the Central Bank of Kenya (CBK).

Flutterwave says the allegations are false.

“Claims of financial improprieties involving the company in Kenya are entirely false, and we have the records to verify this. We are a financial technology company that maintains the highest regulatory standards in our operations. Our Anti-money laundering practices and operations are regularly audited by one of the Big four firms. We remain proactive in our engagements with regulatory bodies to continue to stay compliant,” said Flutterwave in a statement shared with TechCrunch.

The ARA alleges that the funds in Flutterwave’s accounts were received from specific foreign entities and transferred to specific accounts belonging to the six companies instead of as settlement to merchants.

It said that Flutterwave’s bank accounts were used as conduits for money laundering under the guise of providing merchant services, and that the fintech had no evidence of retail transactions from customers paying for goods and services. It added that there was no evidence of settlements to the alleged merchants. The agency has petitioned the court to have the money forfeited to the government.

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