A Kenyan court has frozen bank accounts operated by a popular Nigerian online payment platform, Flutterwave over allegations they are linked to fraud and money-laundering.
Kenya’s Assets Recovery Agency (ARA) said it sought and was granted court orders freezing a total of 6.2bn shillings ($52.5m; £43.9m) in 62 bank accounts belonging to Flutterwave and six other firms.
Flutterwave which allows African businesses and their customers to make online payments has since denied the allegations of infractions.
Last year it became the fastest African-led company on the continent to have reached a billion-dollar valuation.
The Kenyan authorities say there was no explanation or supporting documents to back Flutterwave’s transactions in 29 accounts that were spread across three banks.
The accounts contained amounts in Kenyan shillings, US dollars, euros and pound sterling.
Flutterwave is also accused of not having authorisation from Kenya’s Central Bank to provide payment services.
“Further investigations established that there are reasonable grounds to believe that the funds are proceeds of crime obtained from illegitimate sources by the respondent which require to be preserved pending the filing and hearing of an intended forfeiture application,” the agency is quoted as having submitted in court.
But in a tweet on Thursday, Flutterwave said: “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.”
It added “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.”
