The Central Bank of Nigeria’s (CBN) has reportedly fined Moniepoint and OPay, two of Nigeria’s popular fintechs with N1 billion for regulatory infractions in the second quarter of 2024.
Sources in the know of the sanctions confirmed that at least four other fintechs were also penalized following a routine audit conducted by the apex bank on their records for their non-compliance with operational guidelines.
According to the sources, the regulatory inspections remain a standard procedure through which the CBN check banks and other financial institutions (OFIs) in furtherance of its oversight functions as they relate to compliance and non-compliance of licensees with monetary guidelines.
It would be recalled that last year, the deposit money banks (DMBs) and OFIs paid a combined N678 million in penalties, and as of October 2024, the CBN and the Securities and Exchange Commission (SEC) slammed N15 billion fine on 10 commercial banks for various infractions in the first half of the year.
Apart from operational guidelines audit, the CBN has also been expressing concerns about the fintechs’ compliance with Know Your Customer (KYC) processes.
For instance, in April 2024 the apex bank imposed a two-month ban on customer onboarding for some fintechs including Kuda Bank and Palmpay, citing non-compliance with KYC standards for its action on the fintechs.
The ban compelled the affected fintechs to overhaul their onboarding procedures and restated their commitment to improving their compliance with the financial system regulatory guidelines.
While Moniepoint reportedly failed to comment on the sanction imposed on it, an official of OPay was quoted as refuting the milling news report, describing the reports as totally false.
