Flutterwave Kenya Denies Allegation Of Financial Improprieties
Flutterwave Kenya has denied allegations of financial improprieties against its operations in the country, stating that its transactions are backed up with a verifiable record.
Media reports in the country say the High court in Kenya has frozen more than $40m in accounts belonging to Flutterwave under the country’s anti-money laundering laws, court documents showed.
The order was said to be at the instance of Kenya’s Assets Recovery Agency to freeze several accounts with three banks belonging to Kenyan-registered Flutterwave Payment Technology Ltd.
The court order, dated July 1, stops Flutterwave from conducting any transactions from more than a dozen accounts with three banks, which held $43m in dollars, sterling, euro and Kenyan shillings.
“These orders shall subsist for a period of 90 days as provided in section 84 of Proceeds of Crime and Anti-Money Laundering Act,” Judge Esther Maina said in a ruling pending a full hearing and final order at a later date”, stated the media reports.
The frontline Fintech however stated that the claims against it are false in its entirety adding that its operations comply with regulatory rules and global best standards.
“We are a financial technology company that maintains the highest regard in our operations. Our Anti-money laundering (AML) 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” the management said in a statement.
Flutterwave with headquarters in San Francisco was founded in 2016 in Nigeria, specialising in individual and consumer financial transfers. In its short period of existence, it has grown to become one of several fintech firms facilitating and capitalising on Africa’s booming payments market.
Its strength in the market has endeared it to many, helping it to raise $250 million earlier this year, and buoying its value to over $3bn.
The management noted that through its financial institution partners, Fintech collects and pays on behalf of merchants and corporate entities.
“In the process, we earn our fees through a transaction charge, records of which are available and can be verified” stated the company which added that as a business, we hold corporate funds to support our operations and provide services to all our customers.
Flutterwave facilitates payments for the biggest organizations in the world and everyday businesses, and as such, “process significantly large volumes of money and contribute to growing the economy in Kenya, and the rest of Africa”.
Flutterwave added that it has a responsibility to ensure the integrity of the ecosystem, and we pledge its commitment to continue working with all stakeholders to uphold this.
“We are working to ascertain the motive behind the false claims, and have the records straightened”, the company noted.
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