Panic Among Customers As CBN Bans Opay, Palmpay, Others From Onboarding New Accounts

…As EFCC Freezes Over 1,100 Bank Accounts Amidst CBN’s Ban On Fintechs

ABUJA, FCT, NIGERIA – The Central Bank of Nigeria’s recent ban on mobile money operators and fintech firms from accepting new customers has sparked concern among bank patrons.

This directive, affecting companies like OPay, Palmpay, Kuda Bank, and Moniepoint, prohibits the opening of new accounts until further notice.

While the Bank Customers Association of Nigeria supports the CBN’s decision, many are left uneasy about the implications of this move.

Sources within major fintech companies, speaking anonymously, have confirmed the development, linking it to an ongoing audit of Know-Your-Customer processes.

The CBN’s decision comes amidst heightened scrutiny of fintechs for potential involvement in money laundering and terrorism financing. Last week, the heads of fintech firms were reportedly summoned to Abuja for discussions on KYC issues.

As of now, the CBN has not publicly commented on the directive, and attempts to reach them for clarification have been unsuccessful.

The silence from the apex bank has left many questioning the motives behind the ban and its potential impact on the financial sector.

Coinciding with the Central Bank of Nigeria’s directive to halt new customer onboarding by fintech firms, the Economic and Financial Crimes Commission (EFCC) secured a court order to freeze at least 1,146 bank accounts allegedly involved in illegal foreign exchange transactions.

Justice Emeka Nwite granted the EFCC’s request, filed through counsel Ekele Iheanacho, to freeze the accounts for 90 days while concluding the investigation.

The court order pertains to individuals and companies under investigation for unauthorized dealing in foreign exchange, money laundering, and terrorism financing.

The motion dated April 24 and heard on the same day by the judge in the interest of national security, cited relevant sections of the 1999 Constitution, the EFCC Establishment Act 2004, and the Money Laundering Prevention and Prohibition Act 2022.