Just in: CBN gets order to freeze Risevest, Bamboo accounts for 180 days

The Central Bank of Nigeria (CBN) has been granted permission to freeze accounts of six fintech companies. 

A federal high court in Abuja gave the order on Tuesday.  

The fintech companies are Bamboo Systems Technology Limited, Bamboo Systems Technology Limited OPNS, Chaka Technologies Limited, CTL/Business Expenses, Trove Technologies Limited and Rise Vest Technologies Limited. 

The apex bank had asked the court to grant an injunction to freeze the fintech companies accounts for 180 day pending the outcome of its investigation on if the companies are engaged in “illegal foreign exchange trading”. 

In April, the Securities and Exchange Commission (SEC) warned the investing public on the proliferation of unregistered online investment and trading platforms, facilitating access to trading in securities listed in foreign markets. 

The regulator had advised capital market operators who work in concert with the referenced online platforms to desist. 

This was contained in a circular to capital market operators. 

According to the circular, “The attention of the SEC has been drawn to the existence of several providers of online investment and trading platforms, which purportedly facilitate direct access of the investing public in Nigeria to securities of foreign companies listed on securities exchanges registered in other jurisdictions. 

“These platforms also claim to be operating in partnership with capital market operators registered with the Commission”.