The Central Bank of Nigeria (CBN) has reportedly freezed the accounts of four investment fintechs in the country including Trove, Chaka, Rise and Bamboo.
The accounts freezing came after the CBN was granted an exparte motion from the Federal High Court sitting in Abuja.
The Whistler reports that the motion was filed on behalf of the Central Bank Of Nigeria Governor, Godwin Emefiele, by Chief Micheal Kaase Aondoakaa, SAN, for the purpose of probing the defendants’ financial activities in Nigeria.
The CBN alleged that Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Chaka Technologies Limited and Trove Technologies Limited 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.”
Aondoakaa told Justice Ahmed Mohammed that the foreign exchange deals done with the defendants was part of what was making the Naira weaker to the United States dollars, hence, the need to block 15 of their accounts for about 180 days.
Recall that CBN announced recently that it has stopped the sales of forex to Bureau De Change operators.
Emefiele accused the BDC operators of facilitating grafts, illicit financial flows, and money laundering in the country.
Emefiele added, “In particular, we have noted with disappointment and great concerns that our Bureau De Change operators have abandoned the original objective of their establishment which was to serve retail end users who need $5,000 or less.
Henceforth, weekly sales of foreign exchange by the CBN will go directly to commercial banks.
The Naira had fallen marginally against the dollar since then as it now sells for N515.
Some affected Investment fintechs react
