Breaking: CBN To Freeze Accounts Of Risevest, Bamboo, 4 Other Fintechs For 180 Days
According to a report by TheCable, the apex bank said it is investigating “illegal foreign exchange trading” by the fintech companies. It sought the court injunction to freeze their account details for 180 days pending the completion of investigations.
The accounts include Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Bamboo Systems Technology Limited OPNS, Chaka Technologies Limited, CTL/Business Expenses, and Trove Technologies Limited.
CBN alleged that the companies were complicit in operating without license as asset management companies “and utilizing FX sourced from the Nigerian FX market for purchasing foreign bonds/shares in contravention of the CBN circular referenced TED/FEM/FPC/GEN/01/012, dated July 01, 2015.”
It would be recalled that in April, Securities and Exchange Commission (SEC) warned the investing public on the proliferation of unregistered online investment and trading platforms, facilitating access to trading in securities listed in foreign markets.
The regulator had advised capital market operators who work in concert with the referenced online platforms to desist.
Meanwhile, the latest development comes few weeks after CBN announced discontinuation of the sales of forex to Bureau De Change (BDC) operators in the country.
Central Bank also confirmed that they will no longer license new BDC operations in the country and have also halted all current processes for new licenses.
CBN’s Governor, Godwin Emefiele said BDC operators have become a conduit for illegal financial flows working with corrupt people to conduct illicit flows and money laundering in Nigeria.
He then directed Deposit Money Banks (DMBs) to set up teller points in designated branches for the sale of foreign exchange to meet legitimate forex requests of their customers.