Opay, a prominent fintech company, has announced that it will soon begin a physical address verification exercise for its existing users. This initiative aligns with new requirements set forth by the Central Bank of Nigeria (CBN). The announcement was made via Opay's official Twitter handle, indicating that company staff will visit merchants' physical locations to verify addresses.
To ensure the security of this process, Opay has advised merchants to verify the identity of their personnel to prevent impersonation or fraud. According to the company, their staff will carry proper identification, including an Opay ID card, Lark Business Card, BD tool, or General Agent Platform ID.
This development follows a statement from the CBN earlier today, revealing that mobile money operators, including Opay, Palmpay, Kuda Bank, and Moniepoint, will resume the enrolment of new customers within a few months. CBN Governor Olayemi Cardoso made this announcement after the 295th Monetary Policy Committee (MPC) meeting in Abuja, emphasizing the need for fintech companies to enhance their operations.
Governor Cardoso explained that the CBN is introducing remedial measures to tighten onboarding processes and manage existing clientele better, aiming to curb money laundering and illicit financial flows. He expressed confidence that these measures would soon normalize operations in the sector under a stronger regulatory framework.
In April, the CBN had ordered mobile money operators to halt onboarding new customers until further notice, affecting firms like Opay, Palmpay, Kuda Bank, and Moniepoint. This directive was linked to an audit of the Know-Your-Customer (KYC) processes of these companies, prompted by concerns over money laundering and terrorism financing.
Following the CBN’s directive, Opay and other fintech platforms warned customers against using their accounts for cryptocurrency transactions, threatening to close accounts involved in such activities as per the CBN’s instructions.
Responding to media queries, Governor Cardoso clarified that the CBN’s actions were not aimed at targeting fintech companies but rather ensuring robust regulation in a rapidly growing sector. He stressed the importance of combating illicit funds and money laundering, noting that the CBN’s goal was to work with fintech firms to strengthen regulations, not to put them out of business.
Opay's latest announcement reflects its compliance with the CBN’s demand for improved KYC processes to prevent financial crimes. Last month, the CBN reportedly summoned heads of leading fintech companies to its headquarters in Abuja to discuss issues related to their KYC practices.
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