The Federal High Court sitting in Abuja has granted an exparte motion filed by a former Attorney-General of the Federation, Chief Micheal Kaase Aondoakaa, SAN, on behalf of the Central Bank Of Nigeria Governor. The motion seeks for the temporary freezing of bank accounts belonging to some online investment and trading platforms where Nigerians transact business online.
The motion was filed on behalf of CBN for the purpose of probing the defendants’ financial activities in Nigeria. According to reports, the accounts of the defendants will remain blocked for 180 days.
In April, the Securities and Exchange Commission said investment services offered by the firms were illegal. The “accusation” leveled against these fintech companies by the CBN is that the companies engage in “illicit forex transactions”. The document further reveals that it will need time to complete its investigation.
The affected firms are Bamboo Systems Technology Limited, Rise Vest Technologies Limited, Bamboo Systems Technology Limited OPNS, Chaka Technologies Limited, CTL/Business Expenses, and Trove Technologies Limited.
These platforms offer Nigerians access to stocks, bonds, and other securities in both local and international markets, and have in recent years grown in popularity in the Nigerian fintech space, especially amongst young people.
CBN alleged that the fintech companies were operating without license as asset management companies. They also added that the defendants were “utilizing FX sourced from the Nigerian FX market for purchasing foreign bonds/shares in contravention of the CBN circular referenced TED/FEM/FPC/GEN/01/012, dated July 01, 2015.”
The statement also read in part that, “… there is a grave allegation that the defendants/respondents are engaged in illegal foreign exchange transactions, accessing/procuring of foreign exchange via their banks from the Nigerian foreign exchange market via several bureaux de change, international money transfer operators and have transferred cash deposit of more than S10,000.00 (Ten thousand dollars) to various accounts overseas contrary to provisions of extant laws and regulations and also traded in foreign securities and cryptocurrencies in contravention to CBN Circular referenced TED/FEM/FPC/GEN/01/012 and BSD/DIR/PUB/LAB/014/001 dated February 5, 2021, and July 01, 2015.”
“It is evident that Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Chaka Technologies Limited, and Trove Technologies Limited are complicit in operating without license as asset management companies and utilising FX sourced from the Nigerian FX market for purchasing foreign bonds/shares in contravention of CBN’s directive.”
The former CJN, Aondoakaa told Justice Ahmed Mohammed that the foreign exchange deals done with the defendants were a major reason that the Naira is getting weaker to the U.S dollars.
The judge, Justice Ahmed Mohammed approved the request to freeze the accounts. He added that those aggrieved can approach the court to seek redress. The matter was adjourned to February 20, 2022, for hearing.
