Opay, Kuda resume onboarding new customers

The Central Bank of Nigeria (CBN) has lifted the restrictions imposed on fintech companies and allowed them to resume onboarding new customers.
This development comes after a month-long freeze implemented in April 2024 to curb peer-to-peer cryptocurrency trading by CBN.

OPay and Kuda, two of the affected fintech companies, in separate statements on Monday, confirmed CBN approval to start onboarding customers.

OPay, in its press release on X, said it’s thrilled to announce that the apex bank has given the company the thumbs up to resume onboarding new users.
OPay also disclosed that it “strictly adheres” to the approved KYC verification processes and urges its customers to follow the due verification process.

“This milestone highlights our dedication to following the rules, keeping your information safe and secure, and preventing any shady activities,” OPay added.

“Furthermore, it is imperative to reiterate that OPay strictly adheres to the approved KYC verification processes and urges our esteemed customers to ensure that the due verification process is followed for all accounts and all requirements are completely fulfilled.”
Kuda also announced the approval in a statement, stating its commitment to compliance and security.

It noted that to register, customers will need their BVN, NIN, and proof of address (followed by address verification) to open a Tier 3 account.

The statement read: “We have good news:

“As you probably already know, we’ve been working with the CBN to meet recent regulatory requirements by putting more account controls in place.
“Based on the work we’ve done, we’ll resume signing up new customers this week!

“Please note that you’ll need your BVN, NIN, and your proof of address (followed by address verification) to open a Tier 3 account.”

CBN on April 29, 2024, had ordered fintech companies, including OPay, Moniepoint, and Kuda, to cease accepting new clients.

The move, according to CBN, was aimed at curbing peer-to-peer cryptocurrency trading, which the regulator deemed a security concern.
The decision was prompted following the CBN’s discovery of 1,146 accounts involved in crypto trading.

However, the fintech companies argued that the directive was misdirected, as the majority of the implicated accounts belonged to commercial banks, not fintech platforms.

Despite this, the CBN insists that the fintech companies must comply with certain requirements to resume onboarding new customers.
On May 20, 2024, the CBN outlined the conditions for lifting the freeze, including the mandatory physical address verification for all account levels, the prohibition of P2P cryptocurrency transactions, and the updating of customer facial verification systems.

The fintech companies were also required to demonstrate their commitment to adhering to authorized Know Your Customer (KYC) verification procedures and preventing fraudulent activities.

Following these requirements, the CBN has now allowed the resumption of onboarding new customers by fintech companies.

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