Nigeria’s Central Bank accuses Fintech companies of breaking Forex rules by freezing bank accounts

The central bank of Nigeria (CBN) has reportedly frozen bank accounts belonging to four fintech companies for up to 180 days after the Federal High Court in Abuja joined the “EX parte”petition.”Former parte petition, a kind of suspension, was filed after Nigerian Chief Michael Kaase Aondoakaa petitioned on behalf of CBN Governor Godwin Emefiele.

Accounts frozen for further investigation
This temporary freeze on bank accounts will allow CBN to further investigate the activities of the four companies, according to the report. Meanwhile, several Nigerian media outlets identified the decommissioned companies as Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Chaka Technologies Limited and Trove Technologies Limited.

The report also suggested that CB’s decision to file the former parte petition was taken after the results of the central bank’s preliminary investigation showed that four companies were operating without a licence from asset management companies. October July 01, 2015 the Central Bank accuses fintech companies of “using Forex transactions from the Nigerian Forex market to buy foreign bonds / shares in violation of the CBN circular”.

Nigeria has suffered from currency shortages in recent years, which has led to the continued depreciation of the naira. In response to the decline of Nairas, the Central Bank has imposed restrictions or restrictions on the volume of foreign currency that ordinary Nigerians can withdraw from banks.

Fintech Companies Aren’t Bothered
CBN also blocked cryptocurrency companies ‘ access to the country’s banking system, while foreign exchange sales to exchange offices were recently halted. However, despite such interventions by the Central Bank, the naira continues to lose its position against major currencies. at the time of writing, Naira’s parallel market rate against the US dollar was 1:515, while the official rate remains the same at 1:411.

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