Flutterwave Cleared of Money Laundering, Fraud Charges by Kenyan Court

Flutterwave Cleared of Money Laundering, Fraud Charges by Kenyan Court

  • The legal hurdles of Nigeria's payment company, Flutterwave, in Kenya has finally come to an end
  • The fintech company has been acquitted of charges related to money laundering and fraud
  • The judge criticized the investigation's negligent, reckless, and hasty handling, deeming it as careless

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.

A Kenyan High Court has approved the Asset Recovery Agency's (ARA) request to dismiss its final legal action against Flutterwave, one of Nigeria's top fintech companies.

This development comes after the court rejected the anti-money laundering agency's attempt to withdraw its second lawsuit against the Nigerian fintech company in July 2023.

Flutterwave
Investigation revealed that Flutterwave was not involved in any unlawful activities, including fraud and money laundering Photo credit - Flutterwave
Source: UGC

Fraud charge against Flutterwave

The ARA, an agency that investigates and recovers proceeds of crime, had frozen more than $3 million in August 2022 for Flutterwave, Hupesi Solutions, and Adguru Technology Limited due to allegations of money laundering and fraudulent conduct.

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However, the ARA has decided to withdraw the case after further investigation revealed that Flutterwave was not involved in any unlawful activities, including fraud and money laundering.

Court ruled in favour of Flutterwave

According to The Guardian, the judge criticized the investigation's negligent, reckless, and hasty handling, deeming it as careless.

In his ruling, the judge said:

After considering all the facts presented to this court, as well as my earlier ruling on the agency’s request for withdrawal of this suit, the withdrawal is hereby allowed and this suit is marked as withdrawn.

The judge emphasized that the withdrawal hinged on the agency director and the investigator assuming exclusive and personal responsibility for any forthcoming civil or tort-related liabilities, rather than shifting the burden onto the Kenyan government or necessitating the use of taxpayer funds.

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Meanwhile, the unicorn is experiencing relief following the withdrawal of the last case, particularly because it had received a warning from the Central Bank of Kenya in 2022.

The warning pertained to their operation without a remittance license and their attempt to acquire a payments service provider license.

In response to the court's verdict on Friday, Flutterwave expressed its contentment and embraced the ruling that absolved the company of any misconduct.

The company reiterated its commitment to upholding ethical business practices and maintaining the utmost standards of integrity throughout the legal process.

Flutterwave secures Nigeria’s highest payments processing license

In related news, Legit.ng reported that Flutterwave had obtained a Switching and Processing license granted by the Central Bank of Nigeria (CBN).

This license holds significant value within the realm of payment processing, permitting Flutterwave to provide clients with transaction switching and card processing services.

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Furthermore, it encompasses non-banking acquiring, agency banking, and payment gateway services.

This license empowers Flutterwave to directly engage in card transactions, participate in agency banking, and offer various services without the need for intermediaries.

Source: Legit.ng

Authors:
Victor Enengedi avatar

Victor Enengedi (Business HOD) Victor Enengedi is a trained journalist with over a decade of experience in both print and online media platforms. He holds a degree in History and Diplomatic Studies from Olabisi Onabanjo University, Ogun State. An AFP-certified journalist, he functions as the Head of the Business Desk at Legit. He has also worked as Head of Editorial Operations at Nairametrics. He can be reached via victor.enengedi@corp.legit.ng and +2348063274521.

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