CBN FINES OPAY, MONIEPOINT N1 BILLION EACH FOR REGULATORY MISCONDUCT

The Central Bank of Nigeria (CBN) has imposed a fine of N1 billion each on Opay and Moniepoint for regulatory misconduct. This move is part of the CBN’s efforts to tighten its grip on the fintech sector, which has grown rapidly in recent years.

Reasons for the Fine

The fines were imposed after a routine CBN audit revealed compliance issues with regulatory requirements. The CBN has been increasing its scrutiny of fintech startups, particularly those operating under microfinance bank licenses, which some argue are inadequate to safeguard customers effectively.

According to sources, the CBN audit revealed that Opay and Moniepoint had failed to comply with certain regulatory requirements, including Know Your Customer (KYC) standards and Anti-Money Laundering (AML) regulations.

Background of the Fintech Companies

Opay and Moniepoint are two of the leading fintech companies in Nigeria. Opay has grown significantly since its launch in 2018, claiming a customer base of around 40 million. Moniepoint, on the other hand, has processed 5.2 billion transactions in 2023 alone.

Previous Fines and Regulations

This is not the first time that the CBN has imposed fines on fintech companies. In October 2024, ten commercial banks were fined N15 billion for various infractions. Nigerian banks paid a combined N678 million in penalties in 2023.

The CBN has also taken steps to regulate the fintech sector, including the introduction of new guidelines for the operation of Payment Service Banks (PSBs).

Impact on the Fintech Sector

The fines imposed on Opay and Moniepoint are likely to have a significant impact on the fintech sector in Nigeria. The CBN’s increased scrutiny of fintech companies may lead to a more regulated environment, which could affect the growth and innovation of fintech startups.

However, the CBN’s actions may also lead to increased confidence in the fintech sector, as customers and investors may view the regulations as a sign of a more stable and secure environment.

Conclusion

The fines imposed on Opay and Moniepoint by the CBN are a clear indication of the regulator’s commitment to enforcing compliance with regulatory requirements. As the fintech sector continues to grow and evolve, it is essential that regulators and operators work together to ensure that the sector is safe, secure, and stable.