Kenyan authorities recently froze the accounts of Korapay Technologies and are alleging the company of engaging in money laundering.
This decision was a result of two suits filed by the country’s Asset Recovery Agency (ARA), which accused the companies of availing themselves to be used by fraudsters as a conduit for international money laundering.
Korapay has denied these allegations and is claiming innocence of any wrongdoing.
Last year, Kora expanded its operations into Kenya in pursuit of our mission to enable payments across, into and outside of Africa. According to Kora, they approached the Central Bank of Kenya (CBK) for its license to operate as a payment and remittance services provider and as part of the capital requirements from the CBK for obtaining a payment service provider and remittance operator license. (They enclosed the evidence here)
Kora stated that they deposited the sum of $250,000 in its freshly opened bank account. In line with CBK requirements, the funds were not tampered with pending the granting of their license.
The company stated that the allegations of money laundering are unfounded and the allegations have been on since May 2022.
Kora is of the opinion that they have all the documents which vindicate them and are confident that the Kenya courts will agree and rule in their favor.
