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HomeTop NewsCBN investigates six fintech firms, obtains court orders to freeze accounts

CBN investigates six fintech firms, obtains court orders to freeze accounts

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The Central Bank of Nigeria (CBN) has obtained an order of a Federal High Court in Abuja to freeze the bank accounts of some fintech firm trading in foreign exchange investment scheme.

The order issued by Justice Ahmed Mohammed of FHC following an ex parte application filed by the regulatory bank against the firms.

The affected companies can, however, approach the court for redress, according to the judge.

The CBN told the court that the financial activities of the defendants were being probed for operating without obtaining licence as asset management companies and utilizing FX sourced from the Nigerian FX market for purchasing foreign bonds/shares in contravention of the CBN circular referenced TED/FEM/FPC/GEN/01/012, dated July 01, 2015.

The defendants affected by the order are Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Bamboo Systems Tech. Ltd OPNS, Chaka Technologies Limited, CTL/Business Expenses and Trove Technologies Limited.

The CBN had prayed the court for ‘An interim order of this honourable court empowering the plaintiff/ applicant to direct the head offices of Zenith Bank Plc (Churchgate Street, Victoria Island, Lagos), Guaranty Trust Bank Plc (Plot 635, Akin Adesola, Victoria Island, Standard Chartered Bank (142, Ahmadu Bello Way, Victoria Island, Lagos.), Access Bank of Nigeria (999c, Danmole Street, off ldejo Street, Off Adetola Odeku Street, Victoria Island, Lagos), VFD Microfinance Bank (Elephant House. 5, Floor, 214 Broad Street, Marina Island, Lagos), to freeze forthwith all the bank accounts of the defendants/respondents for a period of 180 days pending the outcome of investigation and inquiry conducted by the CBN.”

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A senior supervisor of the apex bank, Christiana Gyang, deposed to the fact that the bank had reviewed the activities of the defendants to determine their alleged involvement in illegal foreign exchange.

In response to the court order, Risevest sent mail to all its customers to inform them of the latest development.

“With regard to the latest news about us and our FX dealings, you can be sure that your investments and funds are safely managed, that funding and withdrawals will continue to be processed as normal, and that all our US operations remain intact.

“We will work with regulators, as we always have to ensure that all issues raised are properly addressed.

“However, this does not affect our users or their investments, which are managed by regulated third parties in all jurisdictions in which we operate.

“Thank you for choosing Rise.”

In a tweet, Bamboo said, “Hi everyone, we are aware of the recent reports about us. Our legal and government relations teams are looking into them but we thought it was important to let you know that your money remains safe with Bamboo and will always be readily accessible.”

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