illegal FX Transactions- Opay Closes Non-Complaint Accounts

Nigerian fintech company Opay has announced the closure of non-compliant accounts amid the recent Central Bank of Nigeria (CBN) directive to clamp down on accounts involved in illegal forex transactions.

Recall that four Nigerian fintech firms which include OPay, Palmpay, Kuda Bank, and Moniepoint had to halt the onboarding of new customers due to allegations of accounts being used for illicit foreign exchange transactions.

Opay, in compliance with the CBN directive, disclosed that it is working closely with the CBN and other regulatory bodies to fight money laundering, fraud, terrorism financing, and other illegal financial activities.

The company wrote,

“As a regulatory-compliant institution, OPay follows the rules the CBN and other regulators set to ensure the financial system’s integrity. To achieve this, we have closed non-compliant accounts, implemented strict security measures, and educated customers to help combat fraud. We want to assure our customers that their funds are secure and their data is protected, which is a temporary measure”. 

The development comes amid the Nigerian government’s clampdown on currency speculators in the foreign exchange market. Notably, the court had also granted the Economic and Financial Crimes Commission (EFCC) request to freeze 1,146 bank accounts.