A Kenyan high court has reportedly frozen more than Sh6.2 billion ($52,497,883.10) spread in 62 bank accounts belonging to Flutterwave, a Nigerian fintech company, and four Kenyans.
Business Daily Africa revealed that the court issued the freezing order following a suspicion that the funds are proceeds of card fraud and money laundering.
The order was issued on bank accounts belonging to Flutterwave Payment Technology Limited, Boxtrip Travel and Tours Limited, Bagtrip Travels Limited, Elivalat Fintech Limited, Adguru Technology, Hupesi Solutions, Cruz Ride Auto Limited and one Simon Karanja Ngige.
The Assets Recovery Agency (ARA) had applied to block the transfer or withdrawal of the money, pending the filing of a petition to have it forfeited to the government.
The recovery agency, in court filings, said that their investigations revealed the cash was wired in the guise of payments for goods and services.
“That the 1st Respondent’s (Flutterwave) bank accounts received billions in a suspected scheme of money laundering and the same deposited in different bank accounts in an attempt to conceal or disguise the nature, source, location, disposition or movement of the said funds,” ARA said.
“The transactions were done using cards issued by the same bank, at the same point, on the same day, raising suspicion of card fraud.”
ARA said Boxtrip Travel and Tours, registered by Enyioma Olufemi Madubuike, a Nigerian, received Sh467.1 million dollars from Flutterwave on April 27 and April 28.
It said there was no explanation or supporting documents provided to support the transactions and, therefore, believes the accounts were used as conduits for moving illicit cash.
“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 added.
