Flutterwave: Court freezes Sh6.2 billion over alleged links to money laundering

The High Court has frozen over Sh6.2 billion spread across 62 bank accounts belonging to a Fintech company owned by Nigerians and four Kenyans known as Flutterwave on grounds that they could be proceeds from money laundering and card fraud.

According to the company’s website, it provides payment technology for merchants and processes online payments, Point of Sale, mobile and ATM.

The company is owned by two Nigerian nationals; Olugbenga Agboola, Adeleke Christopher, Iynoluwa Samuel, and Flutterwave Inc.

Apparently, one Kenyan named David Mouko Elizaphan Omaanya has also been listed as a director in the company but has no shares.

The Asset Recovery Agency (ARA) applied to block the transfer or withdrawal of the money that was spread in Equity Bank, KCB, Guaranty Trust Bank, and Co-operative Bank, pending the filing of a petition to have the money given up to the government.

The company’s accounts had Sh5.17 billion in 29 different accounts at Equity Bank, Eco Bank and GTB in shillings, US dollars and Sterling pounds.

According to the ARA, their investigations revealed the money was deposited into the accounts as payment for goods and services in an attempt to disguise the source of the funds.

“That the 1st Respondent’s bank accounts received billions in a suspected scheme of money laundering and the same deposited in different bank accounts in an attempt to conceal or disguise the nature, source, location, disposition or movement of the said funds,” ARA said.

“The transactions were done using cards issued by the same bank, at the same point, on the same day, raising suspicion of card fraud.”

The agency claims the money was wired to Flutterwave’s local bank accounts from several countries before being wired to six companies namely Boxtrip Travels and Tours (Sh467.1 million), Bagtrip Travel Limited (Sh4.2 million), Cruz Ride Auto Limited (Sh2.4 million), Hupesi Solutions (Sh1.6 million) and Elivalat Fintech Limited (Sh1.16 million).

Another account that belongs to one Simon Karanja Ngige, who has been listed as the director of Cruz Ride Auto Ltd, had Sh14 million, according to ARA filings in court.

it also indicated that from November 2020 to date, Flutterwave received Sh12.4 billion to a single Equity Bank account which was later transferred to Rem X Limited, whose owners have been listed as Demuren Olufemi Olukunmi and Nehikhare Eghosasere.

In April 2022, Boxtrip Travel and Tours are also said to have received Sh467.1 million in dollars from Flutterwave Payments Technology Limited on 27th and 28th.

However, ARA told the court that the transactions were not supported by any documents or explanation, raising the suspicion that the funds could be ill-gotten.

“Further investigations established that there are reasonable grounds to believe that the funds are proceeds of crime obtained from illegitimate sources by the respondent which require to be preserved pending the filing and hearing of an intended forfeiture application,” ARA said.

Flutterwave and Rainbow technology Solutions wired Sh436 million to one Tofunmi Taiwo Soyemi-owned Bagtrips Travel Limited.

Between November 4, 2020, and April 14, 2022, Elivalat Fintech, whose directors are Jackson Mwangi Kamenju (Kenyan) and Tiwari Simon Adrian (United Kingdom), is said to have received Sh320.8 million in dollars and ARA says the account had only Sh1.16 million by the time it was frozen.

Another firm that received funds from Flutterwave is Edguru Technology Limited, whose directors have been listed as Adeze Chinenye (Nigerian) and Caroline Wanjiku Muchina (Kenyan), and out of the Sh14.1 billion received, only Sh99.8 million was frozen.

Hupesi Solutions owned by Kenyan Festus Mumo Mutuku received a total of Sh143.3 million.

Out of the total amount, Sh54.4 million was transferred to Flutterwave Payments Limited and Sh45.6 was wired to GC Natural PL.

ARA claims the transactions were made in tranches below Sh1 million to avoid being flagged.