Flutterwave has debunked media reports alleging involvement in money laundering, saying it’s a deliberate attempt to launch a campaign of falsehood against Nigeria’s fintech company.
Reports emerged on Wednesday from Kenya, indicating that authorities had placed restrictions on at least 29 bank accounts suspected to have been used by Flutterwave to hold up a whopping $56.7 million.
The Star in Nairobi reported that Flutterwave’s transactions were suspicious resulting in non-compliance with the country’s financial regulations.
“Investigations established that the bank accounts operations had suspicious activities where funds could be received from specific foreign entities which raised suspicion. The funds were then transferred to related accounts as opposed to settlement to merchants,” prosecutors alleged in filings.
Responding to the allegations, Flutterwave said in a statement on its website that claims of financial improprieties involving the company in Kenya are entirely false and are being circulated as part of a disinformation campaign. Flutterwave has been a target of deliberate false media reports and misrepresentations.
Part of the statement reads: “Through our financial institution partners, we collect and pay on behalf of merchants and corporate entities. In the process, we earn our fees through a transaction charge, records of which are available and can be verified. As a business, we hold corporate funds to support our operations and provide services to all our customers.
“By facilitating payments for the biggest organizations in the world and everyday businesses, we process significantly large volumes of money and contribute to growing the economy in Kenya, and the rest of Africa.”
Flutterwave said as a financial technology company, it maintains the highest regulatory standards in its operations ensuring that Anti-money laundering (AML) practices and operations are regularly audited by one of the big 4 firms.
“We remain proactive in our engagements with regulatory bodies to continue to stay compliant. Flutterwave has a responsibility to ensure the integrity of the ecosystem.
“We pledge our commitment to continue to work with all stakeholders to uphold this. We are working to figure out the motive behind the publication, and have the records straightened.”