Emmanuel OchayiThe Central Bank of Nigeria (CBN) has directed mobile money operators and fintech firms to suspend onboarding new customers due to concerns over their Know-Your-Customer (KYC) processes.
The move, which affects companies like OPay, Palmpay, Kuda Bank, and Moniepoint, is part of an ongoing audit to ensure compliance with anti-money laundering and terrorism financing regulations.
While the CBN has not publicly commented on the directive, industry sources confirm that fintech companies have been instructed to halt new account openings until further notice.
The Bank Customers Association of Nigeria supports the move, citing the need for strict regulations to maintain the integrity of financial institutions.
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The development comes as the Economic and Financial Crimes Commission (EFCC) obtains a court order to freeze over 1,146 bank accounts suspected of illegal foreign exchange transactions. The EFCC has been granted 90 days to conclude its investigation.
Fintech companies have faced increased regulatory scrutiny over their account opening processes, with some customers expressing concerns about the safety of their funds.
A source at OPay, who also declined to be named, said they were following the CBN’s directive and could not comment further. “We don’t really have anything to say. It’s just a directive that we are following. The CBN has issued their directive. “
Another source from Moniepoint said the company had complied with the directive, effectively halting new account creation on their platform. However, the source denied having anything to do with KYC.
“It’s just a regulation from the CBN, and we’ve complied. The real question is, why are fintechs always targeted,” the source argued.
“It has nothing to do with KYC; I am aware that the CBN communicated, but this particular issue dwells on accounts related to cryptocurrency transactions,” the source revealed.
However, industry insiders argue that fintechs have played a significant role in deepening financial inclusion in Nigeria, with the CBN aiming to increase overall financial inclusion to 95% of the adult population by 2024.
Some customers are anxious about the safety of their funds, with Warisenibo Jumbo suggesting it’s best to transfer their money out of Opay.
Oye Niran wondered if their Moniepoint account was safe, stating, “Hope my Moniepoint account is safe.”
Larry Leanz questioned the rationale for keeping money on these platforms. “But is it still safe to keep money there?, Leanz questioned.
The temporary pause in onboarding new customers may affect this target, as fintechs process a significant number of new accounts daily.
