Flutterwave reacts to money laundering accusations in Kenya, says it has records to verify claims

Following a report by The Star that Flutterwave has been frozen by an order from a High Court in Kenya on Wednesday, bothering money-laundering accusations, the company has responded saying “we are working to ascertain the motive behind the false claims, and have the records straightened.”

In a statement to Technext, Flutterwave has said the claims of “financial improprieties involving the company in Kenya are entirely false, and we have the records to verify this.” But, the company has not provided the details yet.

The company says they maintain the highest regulatory standards and are proactive in engagements with regulatory bodies to stay compliant.

Flutterwave also mentioned that it has a responsibility to ensure the integrity of the fintech ecosystem, and will ensure the claims of involvement in financial improprieties will be “straightened.”

Background

Kenyan authorities froze the financial assets of Flutterwave after filing criminal charges against the fintech company.

The company was accused of enabling illegal transactions and failing to comply with financial regulations in Kenya as reported by The Star in Nairobi, adding that Flutterwave was one out of seven firms involved.

However, Flutterwave alone had its accounts frozen to the tune of $56.7 million (6.7 billion Kenyan shillings) by the country’s Asset Recovery Agency, The Star said.

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 settlements to merchants.

Prosecutors alleged in filings

The Star also reported that Flutterwave’s CEO, Agboola Olugbenga was said to have enabled illegal transactions to the tune of $101 million dollars (12 billion Kenyan shillings) before authorities ‘understood’ the situation.

The Flutterwave’s statement:

“We are a financial technology company that maintains the highest regulatory standards in our operations. Our Anti-money laundering (AML) 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.

“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 organisations 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.

“Flutterwave has a responsibility to ensure the integrity of the ecosystem,  and we pledge our commitment to continue working with all stakeholders to uphold this. We are working to ascertain the motive behind the false claims, and have the records straightened.”