Court Grants Nigeria's Central Bank Power To Freeze Accounts Of Financial Technology Companies Over Alleged Fraudulent Deals | Sahara Reporters

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As seen in a court paper, the apex bank said it is investigating ‘illegal foreign exchange transactions’ by the fintech companies.

A Federal High Court in Abuja has granted the request of the Central Bank of Nigeria to freeze the accounts of some fintech companies for 180 days.

In the motion ex parte marked FCH/ABJ/CS/822/2021 and filed at the High Court on August 4, CBN through its counsel Michael Kaase Aondoakaa, submitted that “the investigation being carried out concerns what has been discovered to be serious infractions by the defendants/respondents in connection with some foreign exchange transactions, and non-documentation by the defendants/respondents in violation of the extant laws and regulations, particularly the Foreign Exchange Act and the Central Bank of...

“It is evident that Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Chaka Technologies Limited and Trove Technologies Limited are complicit in operating without a license as asset management companies and utilising FX sourced from the Nigerian FX market for purchasing foreign bonds/shares in contravention of CBN’s directive.”

 

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