Flutterwave, a payments technology company, has refuted allegations of money laundering in Kenya as untrue and part of a disinformation effort against the it.
On suspicion of being the proceeds of card fraud and money laundering, the High Court of Kenya froze more than Sh6.2 billion in 62 bank accounts linked to the Nigerian start-up and four Kenyans yesterday.
The Assets Recovery Agency (ARA) applied to prevent the transfer or withdrawal of billions of dollars in Guaranty Trust Bank (GTB), Equity, EcoBank, KCB, and Co-operative Bank accounts, pending the filing of a petition to have the money forfeited to the government.
According to court records, the agency’s investigations indicated that the money was wired under the guise of payments for products and services.
According to the investigators, Flutterwave accounts had Sh5.17 billion (USD 48 million) in 29 accounts at GTB, Equity, and Eco Bank in Kenya shillings, US dollars, Euros, and Sterling pounds.
“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.” Flutterwave said in a statement.
“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.” the statement reads in part.
Flutterwave maintained that it adhered to the highest regulatory requirements in its operations and was seeking to determine the motivation behind the publication.
“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 4 firms. We remain proactive in our engagements with regulatory bodies to continue to stay compliant.” the company stated.