Flutterwave: Court Freezes 56 Bank Accounts With $56.7Million See Why

Flutterwave – 56 bank accounts totaling a staggering Sh7 billion, ($56.7Million), that the High Court believes to have been used to launder money by foreigners have been blocked.

iexclusivenews reports that the Asset Recovery Agency (ARA) informed the court that the accounts of the seven targeted businesses were being used as conduits for money laundering.

Under the pretense of offering merchant services, which led to the issuance of the orders. The blocked accounts are in US dollars, British pounds, euros, and Kenyan shillings. 

This online news outlet understands that Boxtrip Payment Technology Limited, Boxtrip Travel and Tours Limited, Bagtrip Travel Limited.

Elivalat Fintech Limited, Adguru Technology Limited, Hupesi Solutions, Cruz Ride Auto Limited, and a certain Simon Ngige are the businesses named.

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What You Need To Know

Flutterwave was registered on February 23, 2017, according to court records. Olugbenga Agboola, David Mouko (a Kenyan), and Flutterwave Inc. are identified as its directors.  

Guaranty Trust Bank, Equity Bank, and Ecobank were the three banks where the corporation maintained bank accounts totaling 29.

The agency claims that in an effort to hide the kind, source, or movement of the money.

Billions of shillings were received from the company’s account and put into several bank accounts.  

“Investigations established that the bank’s accounts operations had suspicious activities where funds could be received from specific foreign entities, which raised suspicion.” The funds were then transferred to related accounts as opposed to settlement to merchants, “said the agency.” 

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Isaac Nakitare, an investigator with the agency, said in an affidavit that on April 4 of this year. They received orders to search and examine the accounts.

According to Nakitare, Flutterwave’s accounts at Guaranty Trust Bank, Equity Bank, and Ecobank had respective balances of Sh5.3 billion, Sh1.4 billion, and other millions at the time he received the orders. He said that some of the money was deposited into fixed deposit accounts. 

By reportedly offering a payment service platform without the central bank of Kenya’s consent, as required by section 12 of the national payment system act. Flutterwave is accused of having concealed the nature of its company.

He said that, under the pretext of offering merchant services. The accounts were exploited as channels for money laundering. 

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What Isaac Nakitare Is Saying

“If indeed the Flutterwave was providing merchant services, there was no evidence of retail transactions from customers paying for goods and services. “Further, there is no evidence of settlements with the alleged merchants,” he said.  

The company’s equity account number indicated that it had received 185 online card payments from customers in May 2021, all of which had identical bank identity numbers.

There is a suspicion of card fraud because the transactions were completed using cards from the same bank at the same time on the same day.

For instance, according to ARA, the USD bank account for Flutterwave stock was started in November 2020. The majority of the money came from Flutterwave, Inc. 

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The account received about Sh12 billion between 2020 and 2022. Some of the money was transferred to Remix Ltd. While the remainder was put in a fixed deposit account.

Justice Maina further granted orders prohibiting Boxtrip Travels and Tours Limited from moving or withdrawing the Sh460 million ($3.9 million) stored in his Eco bank account. 

The Director of Boxtrip Travels and Tours. The director is listed as Enyioma Olufemi, a Nigerian national.  

“It received the money from Flutterwave Ltd in two days. That is 27 to 28 April this year. ”  

“No explanation nor supporting documents were provided to justify the transactions, therefore there is reasonable grounds to believe that the accounts were used as conduits for money laundering,” said ARA.  

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The Frozen Accounts By The Court

iexclusivenews Nigeria reports that the court froze Bagtrip Travels’ account, which included Sh425 million. Nigerian national Taiwo Soyemi has been named as the company’s director.

On April 28 and May 6, 2022, it got the funds from Flutterwave Ltd. and Rainbow Solution Technology. Elivalat Fintech Limited’s additional Sh1.2 million was frozen. 

Some of the funds were sent to Muoko David, one of the directors at Flutterwave Ltd., and Tiware Adrian Simon, one of the directors of Elivalat Ltd.

The court froze Sh100 million held in Aduru Technology Limited’s equity account. Adaeze Okonkwo and Caroline Muchina, the wife of David Muoko, a director of Flutterwave, are identified as the company’s directors.  

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The Sh1.6 million retained in Hupesi Solutions’ equity account was upheld by the court. Festus Mutuku is named as the business’s owner.

According to the papers, the company’s equity account received Sh143m in total, of which Sh26m in internal transfers and Sh54m were sent to Flutterwave payments and GC Natural PL.

To skirt the reporting barrier, the transactions were completed in installments of less than Sh1 million. However, barely 1.6 million remained in the account by the time the agency received instructions to freezing it. 

The court maintained an additional Sh2.4 million stored in Crus Ride, a car dealer’s account. According to reports, Flutterwave gave the corporation the money on June 6. Later, the money was transferred to Simon Ngige. 

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How The Money Was Deposited

“The account had been dormant and had not received any funds from September 2021 to May 2022.” However, in June 2022, the account received 269,000 US dollars (31.7 million shillings), “said ARA.  

The records show that Flutterwave, Cavin Solutions, and Cruz Ride Auto sent Ngige 452000 US dollars (Sh53.3 million) to deposit in his KCB account.

Ngige sent 200,000 US dollars (SHS 23.6 million) to his KCB account on June 24. He had Sh14 million in his account left over, but the court forbade him from moving it. 

“An analysis of the statements of accounts established that the accounts received suspicious deposits that indicate smurfing activities hoping to evade detection,” said ARA.  

Meanwhile, iexclusivenews Nigeria reports that the court’s orders are valid for 90 days. And on November 7, the case will be discussed. 

(the-star.co.ke)