Flutterwave Reacts To Fraud Claims By Kenyan Government

Nigerian fintech company, Flutterwave has reacted to the money laundering allegations filed against them by the Kenyan government.

Kenya’s Assets Recovery Agency (ARA) had recently accused Flutterwave and seven entities of conducting suspicious transactions in the guise of providing merchant services and failing to comply with financial regulations in Kenya.

According to the ARA, “Investigations established that the bank accounts operations had suspicious activities where funds could be received from specific foreign entities which raised suspicion.

"The funds were then transferred to related accounts as opposed to settlement to merchants.”

According to Kenya Star, the court on Wednesday, July 6, 2022, froze 56 bank accounts holding 7 billion Kenyan Shillings (about $59 million).

Other affected companies are Boxtrip Travel and Tours Limited, Bagtrip Travel Limited, Elivalat Fintech Limited, Adguru Technology Limited, Hupesi Solutions, and Cruz Ride Auto Limited and Simon Ngige.

Flutterwaves’s 29 bank accounts with Guaranty Trust Bank, 17 with Equity Bank and six with Ecobank were all frozen.

Flutterwave Denies Money Laundering Accusation

Reacting in a statement, Flutterwave described the allegations of money laundering as “entirely false”.

The statement reads in part, “Claims of financial improprieties involving the company in Kenya are entirely false and are being circulated as part of a disinformation campaign.

"Flutterwave has been a target of deliberate false media reports and misrepresentations.

“Through our financial institution partners, we collect and pay on behalf of merchants and corporate entities. In the process, we earn our fees through a transaction charge, records of which are available and can be verified.

"As a business, we hold corporate funds to support our operations and provide services to all our customers.

“By facilitating payments for the biggest organizations in the world and everyday businesses, we process significantly large volumes of money and contribute to growing the economy in Kenya, and the rest of Africa.”

The company also stated its role as a payment merchant in Kenya, noting that its Anti-Money Laundering practices were always audited by an unnamed reputable firm and it complied with regulatory bodies.

“We are a financial technology company that maintains the highest regulatory standards in our operations.

"Our Anti-money laundering practices and operations are regularly audited by one of the big four firms. We remain proactive in our engagements with regulatory bodies to continue to stay compliant.

“Flutterwave has a responsibility to ensure the integrity of the ecosystem, and we pledge our commitment to continue to work with all stakeholders to uphold this.

"We are working to figure out the motive behind the publication, and have the records straightened.”