Nigerian fintech company Korapay is prepared to resume its payment operations in Kenya after the Asset Recovery Agency (ARA) decided to remove all charges and penalties.
In July 2022, Asset Recovery Agency charged Korapay with card fraud and money laundering, resulting in their account of Korapay being frozen.
The July Court decision stated that Korapay would be prohibited from using the blocked accounts for six months or until ARA had finished its inquiries.
But the case seems to have been resolved now that it has just been four months.
The Nairobi Anti-Corruption and Economic Crimes Division of the High Court of Kenya received a notice of withdrawal from ARA on October 19, 2022.
Stephen Githinji, the state attorney for ARA, stated in the court documents that the lawsuit would be completely withdrawn.
Read also: Kenya Asset Recovery Agency (ARA) Drops Money Laundering Charges Against Nigerian Companies
Other Alleged Partners
The Asset Recovery Agency sued Korapay and Kandon Technologies Limited, another Nigerian fintech startup, in two separate lawsuits in July 2022.
Following that, the Kenyan government ordered the freezing of two accounts belonging to Kandor Technologies, each worth a total of $126,841, as well as the $249,565 account of Korapay.
A Kenyan businessman and five other Nigerian companies, including Flutterwave Ltd, Elivalat Fintech Ltd, Hupesi Solutions, Boxtrip Travels and Tours Ltd, Bagtrip Travels Ltd, Cruz Ride Auto Ltd, and Simon Karanja, who has 62 bank accounts totalling more than Sh6 billion frozen due to allegations of a similar nature, according to ARA.
Since then, the CEO of Flutterwave has refuted the accusation and characterized it as politically driven in order to target Nigerian businesses before the election in Kenya.
Additionally, Korapay Chief Operating Officer Gideon Orovwiroro disputed the claims, claiming that it had always adhered to the rules and made sure that every KYC requirement was met in all of its dealings.
He claimed that the funds that the ARA said were used to launder money were placed in the account to help it obtain its license from the Kenyan central bank.
The Kenyan central bank has not yet approved the company’s license. However, Korapay’s account has been unfrozen, and the application process has resumed.
Then Korapay provided the policies that apply to it as a payment institution as well as its anti-money laundering document.
The business is excited to resume operations and introduce new items in order to repay the steadfast faith that its customers have in it.
According to Orovwiroro, the business is eager to introduce the multi-currency bank account service to the Kenyan market as one of its upcoming goods.
“We must appreciate the ARA, DCI for finally concluding the litigation in the matter and we are glad that they finally approved our position that we never did anything wrong in the first place,” Orovwiroro said.
What to know about Korapay
Korapay is a Nigeria Financial Technology Company which enables local and global businesses to sell, build and scale effortlessly with powerful payment solutions.
The company was founded in 2017 in Lagos, Nigeria. Their suite of plug-and-play tools and payment applications enables fintechs and individuals to set up their businesses in the shortest possible time.
The company’s platform leverages cutting-edge technology, including blockchain settlement, to lower the cost of remittance, enabling individuals and businesses in Africa to receive payments from anywhere in the world.