African Central Banks Are Toughening up on Flutterwave Signaling What Other Startups Should Expect
In July, African payments company Flutterwave was barred from doing business with banks in Kenya because it has “been engaging in money remittance and payments services without licensing and authorization,” according to the central bank. In Ghana, the company’s relationships with banks are being reviewed as part of a surveillance of the financial system.
The regulatory scrutiny from both central banks add to the tense attention on Flutterwave, Africa’s highest valued and best known startup. For months, it has been the main subject of increased public curiosity around the state of compliance and corporate governance at African startups. It has denied recent allegations of money laundering, but questions around its regulatory status point to a line of inquiry that other African startups may start receiving more frequently.
Photo courtesy of the Institute for Money, Technology and Financial Inclusion.