Kuda Bank issues a statement on allegations of reporting clients to the EFCC

Kuda Bank issues a statement on allegations of reporting clients to the EFCC

Kuda Bank has warned its clients that it will close any accounts found involved in the cryptocurrency transaction.

The bank said it cannot facilitate cryptocurrency transactions because it violates the Central Bank of Nigeria policy which regulates all financial institutions in the country.

Kuda Bank’s statement follows multiple social media complaints about several account deletions.

Kuda Bank’s stance on cryptocurrency Kuda Bank was the first Nigerian bank to secure a partnership with Binance, a popular cryptocurrency exchange, and was a big proponent of cryptocurrency at the time, according to a source. However, that all changed after Apex bank banned the cryptocurrency transaction.

Following the CBN announcement on February 12, 2021, Kuda Bank sent a message to clients notifying them of its new cryptocurrency position.

The message read: “In light of recent letters and statements released by the Central Bank of Nigeria regarding cryptocurrency transactions, please note that Kuda Microfinance Bank is not authorized and does not deal in, nor facilitate the trading of, any form of cryptocurrency.

“Consequently, we strongly advise you not to use your Kuda account for cryptocurrency-related activities so as not to have trouble with the law.”

Kuda Reacts to Account Closure Requests Reacting to recent complaints, the bank released a statement to its clients reiterating its determination to obey CBN rules and regulations while conducting its operations.

According to the statement obtained by Nairametrics, Kuda Bank informed clients that if it did not act against fraudulent acts, the bank would be considered a violation of the law.

The message partially reads “Let’s be clear: we are on your side. We are your bank. There should never be any doubt about this.

But as far as we are on your side, we are also a licensed financial institution and our banking license includes regulations and rules that we must obey.

If we disobey these regulations and rules, we will not be allowed to continue running a bank for you or anyone else. There will be no free bank if we break the law.

So when a Kuda customer uses their account in a way that breaks the law, we need to do what the law requires.

In some cases, it may be sufficient to ask the customer to explain what they are using their account for. This is part of a standard Know Your Customer (KYC) process for any financial institution.

In the event of overt fraud, the law requires that we report the client to the relevant authorities and close his account with us so that they do not continue to defraud other people of their money with that account.

Remember that you may have been cheated and we must do everything in our power to prevent this from happening.

If we do not do what the law requires in these cases, we will also be considered breaking the law.

For this reason, for example, we have advised everyone not to use their Kuda account for cryptocurrency transactions of any kind, otherwise we will be forced to close their account as required by the regulations. To date, licensed financial institutions such as ours are prohibited from allowing cryptocurrency transactions and we are not allowed to ignore this ban. It is simply what the law requires. “

Another Perspective “Kuda Bank does not close accounts for no reason,” a source within Kuda Bank told Nairametrics. “The CBN policy must have been infringed by accounts that were deleted.”

He also stated that if an account has been closed incorrectly, there is a way to reactivate it.

He admitted that cryptocurrency is profitable, stating that “the bank is losing money by not supporting cryptocurrencies, but we must obey CBN guidelines”.

Here is the complete press release

kuda exists because we want everyone to enjoy convenient banking services and easily get perks like overdrafts and free debit cards. We have built a bank that puts your needs first and will continue to do our best to protect you and your money.

Let’s be clear: we are on your side. We are your bank. There should never be any doubt about this.

But as far as we are on your side, we are also a licensed financial institution and our banking license includes regulations and rules that we must obey.

If we disobey these regulations and rules, we will not be allowed to continue running a bank for you or anyone else. There will be no free bank if we break the law.

So when a kuda customer uses their account in a way that breaks the law, we must do what the law requires.

In some cases, it may be sufficient to ask the customer to explain what they are using their account for. This is part of a standard Know Your Customer (KYC) process for any financial institution.

In the event of overt fraud, the law requires that we report the client to the relevant authorities and close his account with us so that they do not continue to defraud other people of their money with that account.

Remember that you may have been cheated and we must do everything in our power to prevent this from happening.

If we do not do what the law requires in these cases, we will also be considered breaking the law.

For this reason, for example, we have advised everyone not to use their kuda account for cryptocurrency transactions of any kind, otherwise we will be forced to close their account as required by the regulations. To date, licensed financial institutions such as ours are prohibited from allowing cryptocurrency transactions and we are not allowed to ignore this ban. It is simply what the law requires.

We are not an unreasonable organization, so anyone who uses their kuda account for legitimate personal or business transactions has absolutely nothing to worry about. Even if we notice an unusual transaction on an account, a simple explanation to our team will usually be enough to take care of things.

We want to make you happy, support your legitimate business and continue to celebrate your successes with you.

If you have any complaints about how we have handled your account with us, or if you are not satisfied with a request we have made about your transactions, please send a message to complaints@kudabank.com and we will get back to you as soon as possible.

We are your bank and we are here for you. We will always work with and for you, never against you.

Love,

The Kuda Team

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