Postponement for 3 Nigerian companies if Kenya drops money laundering case

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The Asset Recovery Agency -ARA has liquidated three Nigerian companies, Avalon Offshore Logistics Limited, OIT Africa Limited and RemX Capital Limited, which were linked to Sh 5.7 billion in international money laundering.

Supreme Court Justice Lady Justice E.N Maina issued an order on Sept. 7 prohibiting the agency from freezing their funds, citing an affidavit by ARA investigator Fredrick Musyoki.

“Money came mainly from foreign jurisdictions and when we summoned the directors, they were unable to explain their sources, leading us to believe it was the proceeds of a crime that could be forfeited to the state,” Musyoki said.

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A file image of EACC boss Twalib Mbarak and DPP Noordin Haji in conversation.

File

The agency had previously claimed that the companies were owned by two Nigerians and two TBEN who registered as directors but serve as proxies for powerful individuals.

It is not the first time that Nigerian companies have been on the scene for money laundering in Kenya. In 2021, the Supreme Court ordered the accounts of two Nigerian fintech startups, Korapay and Kandon Technologies, to be frozen at more than sh45 million.

The agency had filed a lawsuit in July this year accusing the three companies of laundering money in the country from foreign jurisdictions.

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However, the fintech company denied the allegations, saying that its anti-money laundering money is mostly regulated by large corporations.

“Claims about financial irregularities involving the company in Kenya are completely false and we have the data to verify this. We are a financial technology company that applies the highest legal standards in our operations. Our anti-money laundering and operations are regularly monitored by one of the four major offices,”

Furthermore, the agency had frozen the company’s account after it received orders from the court that prevented it from doing business.

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The agency is currently investigating a case in which $7 billion was found in accounts with several local banks linked to Flutterwave Payment Technology Limited.

The Asset and Recovery agency was established after the Kenya Proceeds of Crime and Anti-Money Laundering Act was enacted in 2009 to guard against money laundering and other financial crimes

The agency is now charged with identifying, tracing, freezing, seizing and confiscating crime and financial proceeds in Kenya.

Flutterwave responds to accusations of money laundering by ARA on Thursday 7 July 2022.

Flutterwave responds to accusations of money laundering by ARA on Thursday 7 July 2022.

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