Nigerian startup, Flutterwave, has denied allegation that the company is involved in money laundering after Kenyan authority, Asset Recovery Agency (ARA), closed 52 accounts belonging to the firm to aid their investigation.
ARA secured a court order to suspend activities on the accounts in Guaranty Trust Bank, Equity Bank, Ecobank. The government agency discovered N43.6 billion (Sh12 billion) entered the acccunts, and their source and purpose concealed allegedly by Flutterwave.
In a court document revealing the ongoing probe into Flutterwave’s affair, it was stated that the funds were unconnected to the service the firm offers, which is payment platform for trade of goods and services for merchant.
Part of the court statement reported by The Star Kenya disclosed that 185 online card payments were made in May 2021. The government agency suspected the transactions is a result of card fraud, considering they were made with same cards that has similar identification number, which was issued by the same bank in one day.
However, in response to the accusations, Flutterwave said the allegations are false, as it operates under the oversight of the Kenyan regulator and also subjected to auditing by one of the big four auditors, “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 (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.
“Through our financial institution partners, we collect and pay 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. As a business, we hold corporate funds to support our operations and provide services to all our customers.
“By facilitating payments for the biggest organizations in the world and everyday businesses, we process significantly large volumes of money and contribute to growing the economy in Kenya, and the rest of Africa.
“Flutterwave has a responsibility to ensure the integrity of the ecosystem, and we pledge our 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.” Flutterwave said.