Flutterwave Cleared by Kenyan Court For Money Laundering Charges

Nigerian Fintech unicorn Flutterwave has been cleared of money laundering charges by a Kenyan court, after the Asset Recovery Agency (ARA) dropped the lawsuit.

The ARA withdrew the case it filed last year on grounds that further investigations revealed that Flutterwave was not involved in criminal activities, including money laundering and fraud.

The judge in a Kenyan court during the ruling said,

“After considering all the facts presented to this court, as well as my earlier ruling on the agency’s request for withdrawal of this suit, the withdrawal is hereby allowed and this suit is marked as withdrawn”.

The judge further stated that the withdrawal was contingent upon the director of the agency and the investigator bearing “solely and personally” all future civil or tortious, liabilities rather than passing to the Kenyan government or requiring the use of public funds.

“This is given the negligent, reckless, careless, and rash manner in which this case was investigated, and these proceedings were instituted and driven,” he added.

The Asset Recovery Agency (ARA’s) decision to also release the $3 million previously inaccessible to Flutterwave and co-accused entities is driven by a lack of evidence supporting alleged criminal activities. 

Kenya is now set to release the $3 million it had frozen from access by Flutterwave and its Co-accused Adguru and Hupesi solutions.

The case withdrawal against Flutterwave, brings a huge sigh of relief to the Fintech unicorn, as it seeks to acquire a payments service provider and remittances license from the Central Bank of Kenya, which flagged it last year for operating without one. 

It also comes at a time when Flutterwave is ramping up its efforts to expand into the East African country.

Notably, the recent court ruling now allows the company to operate freely and pursue investment and expansion in the region.