Nigerian fintech company, Flutterwave Limited, has responded to allegations of card fraud and money laundering by Kenya's Assets Recovery Agency (ARA).
ARA moved to court and on Wednesday, July 6, the High Court ruled to freeze more than Ksh6.2 billion held in 62 bank accounts belonging to the Nigerian start-up.
In a statement on Thursday, July 7, Flutterwave disputed the money laundering claims by ARA and further assured their clientele that they will defend their name in court.
In a statement, Flutterwave dismissed claims of financial improprieties involving the company in Kenya, adding that it has records to prove the legitimacy of its business.
"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," the statement read in part.
Flutterwave explained that it facilitates payments for the biggest organizations in the world and small-sized businesses and they process significantly large volumes of money and contribute to growing the economy in Kenya, and the rest of Africa.
Further, the Nigerian start-up added that they follow strict business laws and that the accusations are baseless since the firm is regularly audited.
"We are a financial technology company that maintains the highest regulatory standards in our operations. Our 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 stated.
"Flutterwave has a responsibility to ensure the integrity of the ecosystem, and 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."
On Wednesday, July 7, Justice Esther Maina of the High Court allowed ARA to hold the cash as investigations revealed the money was wired to the banks from the Nigerian fintech company.
Recently, Flutterwave has been embroiled in controversy after former employees turned into whistleblowers and made damning allegations of graft in which senior officials in the company were implicated.
