CBN Lifts Ban on Fintech Customer Onboarding

The Central Bank of Nigeria (CBN) has recently lifted a restriction that had been placed on fintech companies, barring them from onboarding new customers. This embargo was a response to concerns over illicit foreign exchange transactions. After a period of about five weeks, fintechs like OPay, Moniepoint, and Kuda have resumed the customer onboarding process, following the clearance from the CBN.

The ban was initially imposed as part of the federal government’s efforts to regulate the financial sector, particularly concerning unauthorized foreign exchange transactions and cryptocurrency trading. The fintech companies were required to enhance their Know Your Customer (KYC) protocols and other regulatory compliances. The lifting of the ban signifies that these companies have met the CBN’s conditions, which include stringent KYC verification processes and the implementation of additional account controls.

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This development is significant for the Nigerian fintech industry, as it allows these companies to continue their growth trajectory and serve new customers. It also underscores the importance of regulatory compliance in the fintech space and the CBN’s role in ensuring financial stability and security. The resumption of new customer onboarding is expected to commence with immediate effect.