Nigeria’s Court Freezes Bank Accounts of Chaka, Bamboo, RiseVest, Trove, etc on CBN Request

A federal court in Abuja has frozen the accounts of 6 online investment firms. The companies are Bamboo Systems Technology Limited, Rise Vest Technologies Limited, Bamboo Systems Technology Limited OPNS, Chaka Technologies Limited, CTL/Business Expenses, and Trove Technologies Limited. The Central Bank of Nigeria (CBN) has requested for the freeze to enable it conduct forex related investigations on the companies: “The CBN now accuses the companies of engaging in “illicit forex transactions”. The freeze will remain till Feb 2022. These firms help Nigerians buy foreign stocks, bonds and other financial securities.

The Central Bank of Nigeria (CBN) has secured a court order to freeze the accounts of some fintech companies for 180 days. The Federal High Court in Abuja granted the prayer of the apex bank to put the financial activities of the investment firms on hold pending the conclusion of its investigation into their alleged forex misconduct.

The companies include Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Bamboo Systems Technology Limited OPNS, Chaka Technologies Limited, CTL/Business Expenses, and Trove Technologies Limited.

The court document reveals that the financial regulator is investigating ‘illegal foreign exchange transactions’ by the affected companies, which is weakening the naira.

If you look at it, the apex bank thinks they could be weighing on the value of Naira against dollars since technically they are importing “foreign financial products” into Nigeria thereby re-adjusting Nigeria’s balance of payments.

This does not look good at all for the startups.

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Source: Tekedia

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