Nigeria’s Korapay Technologies Limited and Kandon Technologies Limited have been accused of fraud in Kenya, with suspicion of siphoning over $50 million (Sh6 billion) into the country.
The two separate suits, which were filed by the Asset Recovery Agency (ARA), were Issued by Kenyan High Court’s Lady Justice Esther Maina.
ARA states that both fintechs companies are utilized by fraudsters for international money laundering, using Kenyan banks to receive money from untraceable foreign sources.
In the case of Korapay, $249,990 (Sh29.5 million) was frozen in the company’s account at Equity Bank, while that of Kandon was $126,800 (Sh15 million) in two of its accounts at UBA bank.
For Kandon, ARA also establishes that the company siphoned over $42 billion (Sh5.5 billion) which was transacted through its bank account at UBA in seven months between October 2021 and April this year.
“Our investigations revealed that their account had transacted Sh5.5 billion in seven months and by the time we got intelligence information that they were engaged in money laundering, they had transferred the funds to other jurisdictions with only Sh15 million remaining.” — ARA.
In further establishments, ARA notes that the company quickly transferred the money received to other bank accounts to disguise and conceal the source and destination of the suspected illicit funds.
ARA affirms that the Nigerian firms are shell companies incorporated in Kenya for purposes of taking advantage of the liberal financial system to launder funds whose sources are not legitimate.
In Justice Maina’s ruling: “The court issues preservation orders prohibiting the respondents or their agents from withdrawing or transferring the money in the stated accounts for six months to allow Asset Recovery Agency complete investigations in the allegations of money laundering.”
