{"id":6106,"date":"2022-08-02T14:20:04","date_gmt":"2022-08-02T14:20:04","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=6106"},"modified":"2022-08-02T14:20:05","modified_gmt":"2022-08-02T14:20:05","slug":"kenyan-central-bank-orders-financial-institutions-to-stop-dealing-with-two-nigerian-fintechs","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=6106","title":{"rendered":"Kenyan Central Bank Orders Financial Institutions to Stop Dealing With Two Nigerian Fintechs"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p><strong>In a letter addressed to the CEOs of financial institutions, the Central Bank of Kenya (CBK) has said financial institutions operating in the country must cease and desist from dealing with two Nigerian fintechs, Flutterwave and Chipper Cash. The letter reiterates the CBK governor Patrick Njoroge and the Asset Recovery Agency (ARA)\u2019s assertions that the two companies are not licensed to operate in Kenya. <\/strong><\/p>\n<h2>Flutterwave and Chipper\u2019s Clash With the CBK<\/h2>\n<p>The Central Bank of Kenya (CBK) has ordered financial institutions in the country to cease and desist from dealing with two Nigerian fintech startups Flutterwave and Chipper Cash. The order came barely 24 hours after the CBK governor, Patrick Njoroge, had told journalists that the two entities are not licensed to operate in Kenya.<\/p>\n<\/p>\n<p>Before the announcement by the CBK, a High Court in Kenya had ruled that Flutterwave\u2019s bank accounts be frozen to make way for a probe into the fintech giant\u2019s alleged illegal activities. The court ruling subsequently enabled Kenya\u2019s Asset Recovery Agency (ARA) to block Flutterwave\u2019s access to more than 50 bank accounts which reportedly hold nearly $60 million.<\/p>\n<p>As previously reported by Bitcoin.com News, the ARA has argued that Flutterwave is not providing merchant services as per claims but is instead involved in money laundering activities. However, Flutterwave dismissed the allegations and claimed to \u201chave the records to verify this.\u201d The fintech unicorn, which raised $250 million earlier this year, also claimed it \u201cmaintains the highest regulatory standards in our operations.\u201d<\/p>\n<p>In addition, the fintech firm\u2019s statement claimed its \u201canti-money laundering practices and operations are regularly audited by one of the Big Four firms.\u201d<\/p>\n<h2>CEOs of Financial Institutions Told to Confirm Their Compliance<\/h2>\n<p>While Flutterwave suggested in its statement that is working with the regulators, Njoroge\u2019s remarks and the CBK\u2019s subsequent letter to CEOs of Kenyan financial institutions dated July 29, reiterate ARA\u2019s allegations that Flutterwave is engaged in \u201cmoney remittance and payment services without licensing and authorization.\u201d<\/p>\n<p>Meanwhile, in addition to informing the heads of the Kenyan financial institutions about the two fintechs\u2019 operating license status, the letter also demands the CEOs to confirm their compliance with the order within seven days.<\/p>\n<p>\u201cYou are therefore directed to immediately cease and desist from dealing with Flutterwave and Chipper. You are thereafter required, within seven days of the date of the letter to confirm to CBK your compliance with the directive,\u201d the CBK\u2019s letter reads.<\/p>\n<p><em>Register your email here to get a weekly update on African news sent to your inbox:<\/em><\/p>\n<p><em><strong>What are your thoughts on this story? Let us know what you think in the comments section below. <\/strong><\/em><\/p>\n<p>Terence Zimwara <\/p>\n<p class=\"article__body__author__info__about\">\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.<\/p>\n<p><i class=\"td-icon-font td-icon-linkedin\"\/><\/p>\n<p><i class=\"td-icon-font td-icon-twitter\"\/><\/p>\n<p><i class=\"td-icon-font td-icon-telegram\"\/><\/p>\n<p class=\"images_credits\"><em>Image Credits: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n<p><strong>Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<p>More Popular NewsIn Case You Missed It<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/news.bitcoin.com\/kenya-central-bank-orders-financial-institutions-to-stop-dealing-with-two-nigerian-fintechs\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a letter addressed to the CEOs of financial institutions, the Central Bank of Kenya (CBK) has said financial institutions operating in the country must cease and desist from dealing with two Nigerian fintechs, Flutterwave and Chipper Cash. The letter reiterates the CBK governor Patrick Njoroge and the Asset Recovery Agency (ARA)\u2019s assertions that the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6107,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-6106","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-updates"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/6106","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6106"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/6106\/revisions"}],"predecessor-version":[{"id":6108,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/6106\/revisions\/6108"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/6107"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6106"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6106"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6106"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}