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HomeBusiness NewsOPay, Moniepoint, Others To Resume Onboarding New Customers Soon Amid CBN's Interest...

OPay, Moniepoint, Others To Resume Onboarding New Customers Soon Amid CBN’s Interest Rate Hike to 26.25%

The enrollment of new clients by mobile money carriers, including fintech companies such as as OPay, Palmpay, Kuda Bank, and Moniepoint, will restart “in another couple of months,” according to the Central Bank of Nigeria (CBN).

This was said by CBN Governor Olayemi Cardoso on Tuesday at the 295th Monetary Policy Committee (MPC) meeting at the central bank in Abuja. At the meeting, the MPC increased the interest rate from 24.75% to 26.25%.

The head of the CBN stated that various stakeholders have been consulted on the need to fortify their operations by the central bank.

Cardoso stated that the top bank has proposed “remedial measures that will help that sector to tighten up on onboarding and even existing clientele base” in an effort to stop money laundering and illicit flows.

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“I am confident that as time goes on, and hopefully in another couple of months, all these will be something of the past and then you will see that sector going back into what they’ve been known to do before but certainly with a very stronger regulatory framework,” he said.

In April, the apex bank stopped fintech companies from onboarding new customers, a move that has been seen as a clampdown on the financial sub-sector by the Cardoso-led CBN.

When asked why the apex bank took the decision, the CBN chief said reports that the CBN has decided to clamp down on fintech firms are “furthest from the truth”.

He said, “The fintechs have not been singled out for any exceptional kind of treatment, adding that the CBN remained proud of the exploits of fintech firms in the last number of year and the apex bank would continue to support and strengthen them.

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“However, regulation is very critical in a sector that seems to have grown so incredibly rapidly,” Cardoso said, citing illicit flows within the sub-sector.

“More recently, we had course to take a deep dive look at the whole issue of illicit flows and money laundering particularly within the non-heavy regulated banking system and we all know some of the issues that came out with cryptos and some of the messages we put out after that, which of course, gave us some course to know that there is the need for heightened surveillance.”

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He said the apex bank has had major handshake with security agencies to identify the places to tighten regulations and surveillance in the sub-sector.

Cardoso said, “For that reason, we were concerned with respect to how we saw the issue of anti-money laundering and illicit flows as they made their way within the various sub-sectors of the financial industry and we felt there was a need for us to take a breather and work with different players to strengthen regulations, not by any means to throw them out of business.

“Let me re-emphasise that as at this point in time, we have not revoked the licenses of any of the fintech organisations.” [CONTINUE READING HERE]

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