Days after the Nigerian government are clamping down on the activities of Binance and arresting executives of the international money transfer operators (IMTO), there are pointers that LemFi formerly known as Lemonade Finance might be sanctioned as well.
Recall that in July 2023, the Central Bank of Nigeria (CBN) through the subsidiary, RightCard Payment Services Limited, obtained the International Money Transfer Operator (IMTO) license from the Nigeria apex bank.
LemFi which was founded in 2020 is a digital bank for the Africans in the diaspora which provides multi-currency accounts to help manage their unique banking needs exchanging pounds, dollars to Naira, Cedis and others.
According to insights, the CBN is accusing LemFi of aiding and abetting criminals to use the platform to transfer their illegal moneys to and fro Nigeria hence accounts that are connected to the digital bank are directed to be closed thereafter.
Once this restriction is effective, it implies that the IMTO would not be able to facilitate the transfer of naira to other foreign currencies.
LemFi was founded in 2020 by Rian Cochran and Ridwan Olalere and has 60 employees based in Abuja, Nigeria.
It would interest you to know that RightCard Payment Services in February 2024 got approval from the Bank of Ghana (BoG) to partner with Ghanaian Fintech, Nsano Limited to improve its money transfer services to Ghana.
This follows, shortly after LemFi got approval to resume offering their seamless, fast, competitive exchange rate and zero-fees money transfer service offerings to the Ghanaian diaspora.
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