Fintech firm Opay pauses new account openings in response to regulatory directive

By Temi Olowu

Opay, one of the country’s top fintech firms, announced its support for the government’s initiative to clean up the financial industry, aligning itself with recent regulatory directives aimed at enhancing security and combating illicit financial activities.

The company stated this on its X platform on Tuesday and revealed that it has temporarily halted onboarding new customers and creating new wallets to comply with these directives.

In the statement, Opay stated its dedication to fostering a secure financial environment, emphasizing its collaboration with regulatory bodies such as the Central Bank of Nigeria (CBN) in tackling issues like money laundering, fraud, and terrorism financing.

As a regulatory-compliant institution, Opay affirmed its adherence to the rules set forth by the CBN and other regulators to uphold the integrity of the financial system.

Opay’s statement follows similar actions taken by other fintech firms, including Kudabank, Palmpay, and Moniepoint, in response to the CBN’s directive.

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While new customer accounts have been temporarily suspended, existing accounts and wallets remain unaffected, Opay said and reassured its customers of the safety of their funds and data.

The CBN’s directive is part of a broader effort to scrutinize the Know-Your-Customer (KYC) process within the fintech sector, amidst growing concerns about money laundering and terrorism financing.

This heightened regulatory scrutiny was underscored by the recent summoning of fintech firm heads to Abuja for discussions on KYC-related issues.

Although the CBN has not issued a public statement regarding the directive to fintech firms, its actions coincide with a court order obtained by the Economic and Financial Crimes Commission (EFCC) to freeze over 1,146 bank accounts allegedly involved in illegal foreign exchange transactions.

A High Court granted the EFCC 90 days to conclude its investigation into these matters, drawing attention to the gravity of concerns related to unauthorized forex dealings, money laundering, and terrorism financing.