CBN Gets Ruling to Freeze Some Fintechs Accounts Over Forex

CBN Gets Ruling to Freeze Some Fintechs Accounts Over Forex

By Chuks Emele

The Central Bank of Nigeria obtained a court ruling to freeze the accounts of several fintech companies it accused of violating foreign-exchange regulations.

The companies include Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Chaka Technologies Limited, CTL/Business Expenses and Trove Technologies Limited  according to a ruling by Justice Ahmed Mohammed of the Federal High Court in Abuja seen by

The CBN accused the companies of using funds “sourced from the Nigerian  foreign-exchange market for purchasing foreign bonds/shares in contravention of” existing regulations. Specifically, the CBN referenced a circular it issued on July 1, 2015.

The regulator said in an urgent motion filed in the court that the activities of the companies were contributing to the weakening of the naira against international currencies.

The interim order made by the court places a hold on the accounts of the companies, which facilitate investment by Nigerians in international securities,  including those quoted in the U.S., Europe and Asia, for 180 days.

The affected bank accounts are in Guaranty Trust Bank, Zenith Bank,  Access Bank, Standard Chartered and VFD Microfinance Bank.