CBN Gives Fresh Update on Opay, Moniepoint, Kuda, Others' Customer Accounts

• The CBN has provided a new update on its recent ban on fintech apps, such as Opay, from opening new customer accounts
• The apex bank is determined to ensure a sound financial system and has expressed concerns about the customer enrollment process of the banks
• There are concerns by the CBN that fintech apps have been used for illicit financial transactions, especially via cryptocurrency

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Central Bank of Nigeria (CBN) has announced that it will soon reverse its decision and allow mobile money operators, including fintech firms OPay, Palmpay, Kuda Bank, and Moniepoint, to resume enrolling new customers within the next few months.

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CBN governor, Olayemi Cardoso, disclosed this at the end of the apex bank's 295th Monetary Policy Committee (MPC) in Abuja on Tuesday, May 21, 2024.

Legit.ng had earlier reported that the CBN suspended fintech firms from opening new customer accounts, citing irregularities with its Know Your Customer (KYC) policy.

CBN to lift ban on account opening

Speaking to journalists at the end of the MPC meeting, the CBN governor said it had engaged many players on the need to strengthen their operations.

Punch reports that he noted that the decision is part of the government's efforts to block money laundering and illicit flows in the country.

Cardoso said:

“These are remedial measures that will help that sector to tighten up on onboarding and even existing clientele base”.

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“I am confident that as time goes on, and hopefully in another couple of months, all these will be something of the past and then you will see that sector going back into what they’ve been known to do before, but certainly with a very stronger regulatory framework."

CBN governor also denied suggestions that his leadership wants to clamp down on fintech firms' operations.

He said:

"The fintechs have not been singled out for any exceptional kind of treatment. The CBN remained proud of the exploits of fintech firms in the last year and that the apex bank would continue to support and strengthen them.

"However, regulation is very critical in a sector that seems to have grown so incredibly rapidly," Cardoso said, citing illicit flows within the sub-sector.

"More recently, we had cause to take a deep dive look at the whole issue of illicit flows and money laundering particularly within the non-heavily regulated banking system and we all know some of the issues that came out with cryptos and some of the messages we put out after that, which of course, gave us some cause to know that there is the need for heightened surveillance."

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He said the apex bank has worked extensively with security agencies to identify sub-sector areas requiring stricter regulations and enhanced surveillance.

Cardoso added:

“For that reason, we were concerned about how anti-money laundering and illicit flows were affecting various sub-sectors of the financial industry. We felt the need to pause and collaborate with different stakeholders to strengthen regulations, not to put them out of business.

"Let me re-emphasise that, at this point, we have not revoked the licences of any fintech organisations."

CBN stops daily CRR debits of Access, others

Earlier, Legit.ng reported that the CBN announced stopping daily Cash Reserve Requirement (CRR) debits for banks.

The apex bank said it would adopt an updated CRR mechanism intended to facilitate banks' capacity for planning, monitoring and aligning with records with the CBN.

This was disclosed in a letter addressed to all banks and signed by Adetona Adedeji, the acting director of the banking supervision department.

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Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng