The Central Bank of Nigeria (CBN) has reversed its ban on OPay, Moniepoint, Kuda, Palmpay, and Paga, allowing these fintech companies to resume the onboarding of new customers.
This decision comes approximately five weeks after the apex bank halted the onboarding process due to concerns about the potential involvement of their accounts in illicit foreign exchange transactions.
While the CBN hasn’t issued an official statement regarding this matter, OPay and Kuda, two of the affected fintechs, confirmed the development separately to their customers on Monday.
OPay, through its social media handle, expressed its delight at receiving approval from the Central Bank of Nigeria to resume onboarding new users. The company emphasized its commitment to compliance with regulations, safeguarding customer information, and preventing any unlawful activities.
In light of the concerns raised by the CBN, OPay reiterated its adherence to approved KYC verification processes and urged customers to ensure complete fulfillment of all requirements during the verification process.
Similarly, Kuda announced the resumption of signing up new customers this week via social media. The company highlighted its efforts to meet recent regulatory requirements and advised prospective customers to prepare their BVN, NIN, and proof of address for opening Tier 3 accounts.
The CBN’s directive on April 29 initially halted the onboarding of new customers by five fintech companies, following the blocking of 1,146 accounts due to peer-to-peer crypto trading activities.
Despite objections from fintech companies, who argued that the majority of implicated accounts belonged to commercial banks, not fintech platforms, the CBN maintained its stance. Additionally, the National Security Adviser (NSA) classified crypto as a security concern, urging fintech companies to enhance their KYC and fraud prevention measures to curb crypto transactions through their platforms.
On May 20, 2024, the fintech companies were presented with a set of conditions to meet for the lifting of the onboarding freeze. These conditions included blocking peer-to-peer crypto transfers, implementing physical address verification for all account tiers, and updating facial verification systems for customers.
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