The Central Bank of Kenya has disclosed that Chipper Cash and Flutterwave are not licensed to operate in Kenya.
The bank’s governor, Dr. Patrick Njoroge, declared this concerning the two African fintech companies during July’s MPC (Monetary Policy Committee) press briefing.
“Flutterwave isn’t licensed to perform as a payments service provider or a remittance provider in Kenya. They aren’t licensed to operate and so, they shouldn’t be working. I think we could say the same about Chipper Cash, ” Dr. Njoroge said.
This has surfaced less than one month after Flutterwave was linked to a money laundering scandal in Kenya. The fintech company, went ahead to refute the claims of its alleged involvement in the money laundering scandal. That resulted in $60 million being frozen by Judge Esther Maina of the High Court of Kenya in a court order dated 1 July 2022.
The frozen $60 million by the High Court, were stashed in 52 bank accounts in the names of Kenyan, and Nigerian businessmen. Owing to the suspicion that the money was a result of fraud, and crime online. Flutterwave was one of the companies issued with freeze orders and was said to be the major part of the scheme.
The Nigerian-based fintech refuted the money laundering and fraud claims that Kenya’s Asset Recovery Agency, which seeks and recovers crime proceeds, leveled against it.
“Claims of financial indiscretions implicating the company in Kenya are not true, and we’ve got the records to ascertain this. We are one financial technology corporation that observes ultimate regulatory standards in our undertakings. Our general operations and anti-money laundering exercises are often audited by one of our four major businesses. We are always proactive in our dealings with regulatory organizations to remain compliant,” Flutterwave said in a statement at the time.
However, the current statement from the Central Bank of Kenya governor indicates that Flutterwave isn’t authorized to work in Kenya. This may be harmful to the company even as it keeps operating in other countries.
Compliance and regulatory challenges are some of the main impediments to African fintech companies’ growth. CBK similarly halted the launch of Faraja, a Buy Now Pay Later service that would have seen its Kenyan users access shop for commodities amounting to $1,000 on credit.
Faraja belongs to EDOMx Ltd, a financial technology company based in Kenya. Its partners are the Kenyan Safaricom and Equity Bank.
According to reports by the media, CBK halted the launch of Faraja because “it was still under regulatory review and pending approval.”
Flutterwave FAQs
Here are the frequently asked questions about Flutterwave, according to the Flutterwave website:
What is Flutterwave Capital?
Flutterwave Capital enables businesses to access quick and affordable loans to augment the working capital required to grow their business, with no collateral required and easy reporting and monitoring right from their Flutterwave Dashboard
What are the requirements for using Flutterwave?
The requirements for using Flutterwave depend on the country and category of account you are signing up for. It may be in Nigeria, Ghana, Kenya, Uganda, South Africa, and so on.
What If you own a business, but do not have a certificate of incorporation?
You can start by creating an individual account. If you register your business in the future, send an email to hi@flutterwavego.com with a copy of your certificate of incorporation and corporate bank account details for your account to be upgraded to a business account.
What happens if you don’t submit these documents and bank account information?
Your account will be put on test mode and you will not be able to carry out transactions or receive payments via Flutterwave till you submit your documents and bank account information.
What do I need for a seamless verification process?
To ensure a seamless merchant onboarding process for you during registration and verification of your Flutterwave account, please note the following:
For business accounts, there must be a corresponding match between your Flutterwave business Name (Trading name) and the name registered on your business documents.
The business name must match the name on the corporate bank account details uploaded during registration.
The contact person’s name registered on your Flutterwave account must match the name on the valid ID uploaded.
Only the following are accepted as valid means of identification:
- International Passport
- Driver’s License
- National ID (NIN) Card.
Please note that the valid ID uploaded has to be the original colored copy and not duplicates (photocopy). The temporary (paper) NIN slip is not acceptable. For Driver’s License, please upload both sides (front & back) for verification.
For registered businesses, remember to input your CAC number where prompted.
Please ensure you have your valid ID with you for live capture as this would be required.
How much does it cost to create a Flutterwave account?
Nothing! You can create an account and set it up to receive payments on Flutterwave completely free. Flutterwave only charges fees per transaction on transfers and payments you receive.
