In the news:
- PalmPay has resumed onboarding new customers for both individual and business users after a review by the CBN.
- The CBN had previously halted such activities for mobile money operators due to concerns over illicit foreign exchange transactions and deficiencies in the KYC process.
- PalmPay confirmed that it has addressed regulatory concerns and is ready to continue providing secure financial services.
PalmPay, a leading fintech platform, has announced that it has commenced the onboarding of new customers for individual and business users following the review by the Central Bank of Nigeria (CBN).
“We are thrilled to continue our mission to provide more Nigerians with access to secure and reliable financial services,” PalmPay said in a statement made available to Digital TimesNG on Monday.
This milestone represents PalmPay’s ongoing commitment to revolutionizing the Nigerian financial services sector by providing seamless, secure, and efficient financial solutions while working assiduously with the apex regulatory body.
Chika Nwosu, Managing Director of PalmPay Nigeria, stated, “Our commitment to excellence and financial security remains unwavering as we drive financial inclusion. Despite the growing interest in cryptocurrency, PalmPay does not permit cryptocurrency or virtual asset trading on our platform, which aligns with the Central Bank of Nigeria (CBN) regulations to protect the financial ecosystem.
“We monitor platform activities diligently and take necessary actions, including account closure and reporting to the relevant authorities, for any cryptocurrency or other related transactions. We are committed to maintaining a robust Know Your Customer (KYC) and Customer Due Diligence (CDD) systems which help us understand our users and mitigate risks effectively.”
Recall that the Central Bank of Nigeria had late April 2024, stopped mobile money operators including Fintech firms like Opay, PalPay, Kuda Bank, Moniepoint and others from onboarding new customers.
Though no circular was served by the apex bank in that respect, the affected Fintech companies were reported to have accounts being used for illicit foreign exchange transactions.
The CBN’s move was also linked to an ongoing audit of the Know-Your-Customer process of the Fintechs, which have been under scrutiny in recent months over concerns around money laundering and terrorism financing.
Digital TimesNG gathered then that the CBN had summoned some of the heads of Fintechs to Abuja to discuss issues around KYC.
Managing Director/Chief Executive Officer of PalmPay Nigeria, Mr. Chika Nwosu had a couple of weeks ago, declared PalmPay’s unwavering support for regulators of the Fintech industry, noting that recent regulatory pronouncements are intended to not only strengthen the ecosystem but to better the services offered by the industry’s service providers.
Speaking as a guest of a Channel Television’s Business Morning Show, Nwosu said owing to the phenomenal growth the Fintech industry has experienced in so short a time, the regulators felt there was a need to put certain things in place to ensure better service delivery.
Responding to a question on the restriction placed on the digital banks from onboarding new customers into their platforms, the PalmPay Chief Executive disclosed that after they met with the National Security Adviser (NSA), they (digital banks) agreed among themselves to fine-tune some grey areas in their service delivery portfolio.
“If by today PalmPay finished fine-tuning its grey areas, it will start onboarding new customers. But for now, no Fintech can onboard, however, it doesn’t affect our business. There is no day you won’t see on our app boldly written that we are licensed by the Central Bank of Nigeria (CBN). In addition, our deposits are insured by the Nigeria Deposit Insurance Corporation (NDIC). PalmPay is here to stay, and for good,” he said.
President of the Bank Customers Association of Nigeria, Uju Ogubunka, backed the CBN’s move to suspend new account openings on the affected platforms.
He told newsmen then that the strict regulations that govern deposit money banks must apply to Fintechs, and microfinance banks to ensure the integrity of the financial institutions.
“Anything that can disrupt the system should not be permitted. If the platforms are being used for things that are against the regulations, I think the CBN decision is OK. I don’t see anything wrong with that. It behoves the companies now to get their KYC right.
“Let them do what they are supposed to do. KYC applies to banks and other financial institutions that deposit money. It should also apply to them so that the regulators can understand what is going on and hold them accountable,” Ogubunka said.
PalmPay’s core mission remains focused on providing a safe and reliable platform for your everyday financial needs.
The company said in a statement that for better payment security and regulatory supervision, all new users must validate either NIN or BVN when registering.
Users are urged to ensure that the information on these platforms is up-to-date before commencing registration and to review the terms and conditions in the app and website to onboard.