Fidelity Bank PLC, Friday, restored transfers to Moniepoint, PalmPay, OPay and Kuda Bank.
The Commercial Bank had removed the neobanks from its platforms citing rising fraud and customer verification related concerns.
TechCabal reported that the bank has now reinstated transfers to and from the newbanks after a regulator, the Nigeria Inter-Bank Settlement System (NIBSS), expressed its displeasure with Fidelity Bank’s decision to block transfers to these banks.
Mr. Bemigho Awala, the PR Manager at Moniepoint Inc., confirmed to Techeconomy that the matter has been addressed.
He restated that Moniepoint Microfinance Bank “conducts its business in strict compliance and observance of extant laws and regulatory circulars issued by the Central Bank of Nigeria on matters relating to the principles and procedures of Know Your Customer’ (KYC).
“For us, KYC has become a cornerstone in establishing trust, ensuring security, and complying with regulatory standards. KYC is not merely an acronym; it represents a crucial set of processes designed to verify and authenticate the identity of customers engaging in financial transactions”.
A source at PalmPay confirmed the development saying that Fidelity Bank now resorted to the status quo. “It is a concluded matter as customers are currently transacting on Fidelity Bank’s platform without further restrictions”, the source said.
The primary objective of KYC is to prevent financial institutions from being unwittingly involved in illicit activities such as money laundering, terrorist financing, and fraud.
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