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    Anchor Secures $2.4 Million Pre-Seed to Expand Product Services

    Charting a New Era: David Daser’s Induction to Nigerian Protection Act

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    iRevolution: What’s New and Exciting in Apple’s Latest Models

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    Elon Musk Rebrands Twitter to @X

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    Clafiya- Nigerian Health Technology Startup secures $610,000 Venture Capital

    Clafiya- Nigerian Health Technology Startup secures $610,000 Venture Capital

    Top 4 Lucrative Tech Skills in  2023

    Top 4 Lucrative Tech Skills in 2023

  • FEATURED
    Resurgence of Innovation: The Revamp of Tech Startups in Jos, Plateau State.

    Resurgence of Innovation: The Revamp of Tech Startups in Jos, Plateau State.

    Nigeria’s Cash Swap Policy: Goals versus Results

    Nigeria’s Cash Swap Policy: Goals versus Results

    Six Things that could Shape the Northern Nigerian Tech Ecosystem in 2023

    Six Things that could Shape the Northern Nigerian Tech Ecosystem in 2023

    5 Exciting Things That Happened in the Nigerian Tech Ecosystem

    5 Exciting Things That Happened in the Nigerian Tech Ecosystem

    SmallSmall to Expand to Jos following a $3 Million Seed Raise

    SmallSmall to Expand to Jos following a $3 Million Seed Raise

    The Increase in Data Prices is a Big Challenge for Remote Workers in Nigeria

  • BLOCKCHAIN
    Binance now accepts Naira Deposits and Withdrawals

    Binance now accepts Naira Deposits and Withdrawals

    Cardano Accelerator Adaverse Invests in Afriguild’s Mission to Onboard Africans Into Web3

    Cardano Accelerator Adaverse Invests in Afriguild’s Mission to Onboard Africans Into Web3

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    Is Africa Ready to Operate a Digital Monetary Policy?

    What Binance and TikTok Star, Khaby Lame’s Partnership mean for Crypto and Web3 Adoption

    What Binance and TikTok Star, Khaby Lame’s Partnership mean for Crypto and Web3 Adoption

    PLA2SMART Set to Lead a New Frontier in Nigeria’s Tourism Economy

    Bundle Launches Web App to Give Users More Accessibility to Crypto

    Bundle Launches Web App to Give Users More Accessibility to Crypto

  • FINANCE
    CBN prohibits Foreign Banks from Offering Banking Services

    CBN prohibits Foreign Banks from Offering Banking Services

    Flutterwave adds Google Pay to its Payment Options for African Businesses

    Flutterwave adds Google Pay to its Payment Options for African Businesses

    After Receiving Switching and Processing Licence from CBN, Flutterwave includes eNaira to its Payment Options

    After Receiving Switching and Processing Licence from CBN, Flutterwave includes eNaira to its Payment Options

    Flutterwave gets Switching and Processing licence from CBN

    Flutterwave gets Switching and Processing licence from CBN

    Google Expands its Digital Wallet to South Africa

    Google Expands its Digital Wallet to South Africa

    FCCPC Orders Drawdown of Online Credit Companies

    FCCPC Orders Drawdown of Online Credit Companies

  • START UPS
    WorkPay raises $2.7million Pre-series A Funding to Expand its Services across Africa

    WorkPay raises $2.7million Pre-series A Funding to Expand its Services across Africa

    Naked secures $17 Million Series B to Expand its Digital Insurance Company in Africa

    Naked secures $17 Million Series B to Expand its Digital Insurance Company in Africa

    PressOne Africa raises $600,000 Pre-seed Funding to Support Entrepreneurs

    PressOne Africa raises $600,000 Pre-seed Funding to Support Entrepreneurs

    ThriveAgric selected West African Winners of the AYuTe Africa Challenge, receiving $1 million.

    ThriveAgric selected West African Winners of the AYuTe Africa Challenge, receiving $1 million.

    Yebo Fresh raises $4.5 million to Supply Fresh Food in South Africa

    Yebo Fresh raises $4.5 million to Supply Fresh Food in South Africa

    Sky.Garden survives Shutdown, gets New Owners

    Sky.Garden survives Shutdown, gets New Owners

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  • NEWS
    Anchor Secures $2.4 Million Pre-Seed to Expand Product Services

    Anchor Secures $2.4 Million Pre-Seed to Expand Product Services

    Charting a New Era: David Daser’s Induction to Nigerian Protection Act

    Charting a New Era: David Daser’s Induction to Nigerian Protection Act

    iRevolution: What’s New and Exciting in Apple’s Latest Models

    iRevolution: What’s New and Exciting in Apple’s Latest Models

    Elon Musk Rebrands Twitter to @X

    Elon Musk Rebrands Twitter to @X

    Clafiya- Nigerian Health Technology Startup secures $610,000 Venture Capital

    Clafiya- Nigerian Health Technology Startup secures $610,000 Venture Capital

    Top 4 Lucrative Tech Skills in  2023

    Top 4 Lucrative Tech Skills in 2023

  • FEATURED
    Resurgence of Innovation: The Revamp of Tech Startups in Jos, Plateau State.

    Resurgence of Innovation: The Revamp of Tech Startups in Jos, Plateau State.

    Nigeria’s Cash Swap Policy: Goals versus Results

    Nigeria’s Cash Swap Policy: Goals versus Results

    Six Things that could Shape the Northern Nigerian Tech Ecosystem in 2023

    Six Things that could Shape the Northern Nigerian Tech Ecosystem in 2023

    5 Exciting Things That Happened in the Nigerian Tech Ecosystem

    5 Exciting Things That Happened in the Nigerian Tech Ecosystem

    SmallSmall to Expand to Jos following a $3 Million Seed Raise

    SmallSmall to Expand to Jos following a $3 Million Seed Raise

    The Increase in Data Prices is a Big Challenge for Remote Workers in Nigeria

  • BLOCKCHAIN
    Binance now accepts Naira Deposits and Withdrawals

    Binance now accepts Naira Deposits and Withdrawals

    Cardano Accelerator Adaverse Invests in Afriguild’s Mission to Onboard Africans Into Web3

    Cardano Accelerator Adaverse Invests in Afriguild’s Mission to Onboard Africans Into Web3

    Is Africa Ready to Operate a Digital Monetary Policy?

    Is Africa Ready to Operate a Digital Monetary Policy?

    What Binance and TikTok Star, Khaby Lame’s Partnership mean for Crypto and Web3 Adoption

    What Binance and TikTok Star, Khaby Lame’s Partnership mean for Crypto and Web3 Adoption

    PLA2SMART Set to Lead a New Frontier in Nigeria’s Tourism Economy

    Bundle Launches Web App to Give Users More Accessibility to Crypto

    Bundle Launches Web App to Give Users More Accessibility to Crypto

  • FINANCE
    CBN prohibits Foreign Banks from Offering Banking Services

    CBN prohibits Foreign Banks from Offering Banking Services

    Flutterwave adds Google Pay to its Payment Options for African Businesses

    Flutterwave adds Google Pay to its Payment Options for African Businesses

    After Receiving Switching and Processing Licence from CBN, Flutterwave includes eNaira to its Payment Options

    After Receiving Switching and Processing Licence from CBN, Flutterwave includes eNaira to its Payment Options

    Flutterwave gets Switching and Processing licence from CBN

    Flutterwave gets Switching and Processing licence from CBN

    Google Expands its Digital Wallet to South Africa

    Google Expands its Digital Wallet to South Africa

    FCCPC Orders Drawdown of Online Credit Companies

    FCCPC Orders Drawdown of Online Credit Companies

  • START UPS
    WorkPay raises $2.7million Pre-series A Funding to Expand its Services across Africa

    WorkPay raises $2.7million Pre-series A Funding to Expand its Services across Africa

    Naked secures $17 Million Series B to Expand its Digital Insurance Company in Africa

    Naked secures $17 Million Series B to Expand its Digital Insurance Company in Africa

    PressOne Africa raises $600,000 Pre-seed Funding to Support Entrepreneurs

    PressOne Africa raises $600,000 Pre-seed Funding to Support Entrepreneurs

    ThriveAgric selected West African Winners of the AYuTe Africa Challenge, receiving $1 million.

    ThriveAgric selected West African Winners of the AYuTe Africa Challenge, receiving $1 million.

    Yebo Fresh raises $4.5 million to Supply Fresh Food in South Africa

    Yebo Fresh raises $4.5 million to Supply Fresh Food in South Africa

    Sky.Garden survives Shutdown, gets New Owners

    Sky.Garden survives Shutdown, gets New Owners

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How Two Nigerian Fintech Executives Flouted Anti-money Laundering Policy in the U.S

by Ajifa Solomon
July 18, 2022
in FINANCE
Reading Time: 4 mins read
0
How Two Nigerian Fintech Executives Flouted Anti-money Laundering Policy in the U.S
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The News: Two Nigerian executives have been found guilty of flouting anti-money laundering policy while at Ping Express, a Texas-based fintech. The offenders, Anslem Oshionebo (Chief Executive Officer) and Opeyemi Odeyale (Chief Operating Officer) pleaded guilty at a US high court in Texas.

Here’s Why:

  • According to court documents seen by CrestHub, $167 million were transferred from illegal sources, $160 million of which went to Africa.
  • The court also found that Ping Express was making transfers in states within the US where it wasn’t licensed, including Nevada, New Jersey, Utah, West Virginia, and Connecticut. 
  • Other charges against the company include the promotion of ‘romance scam’ businesses.

Breakdown of the events:

  • Within 3 three years of operation after it launched in 2014, the company had made unverified transfers of more than $167 million overseas, including $160 million transmitted to Nigeria. And while Know Your Customer (KYC) policies are existent to prevent money laundering and terrorist financing, Ping Express admitted to ignoring and verifying the identity of customers and the source of funding. Both CEO and COO were each sentenced to 27 months in federal prison.
  • In another filing, the company violated its anti-money laundering policy with failure to limit first-time customer transactions at $499, cap daily transactions at $3,000, and check monthly transactions at $4,500. Shockingly, over 1,500  customers flouted these rules.  In an instance, Ping allowed a customer to remit more than $80,000 in a single month – more than 17 times the  stipulated limit.
  • Romance scams were also rife in the company. A statement by the US Department of Justice reads , “One, Collins Orogun, admitted last week that he accepted a fee in exchange for transferring money for “romance scam” fraudsters and other criminals. 

In one instance, an Indiana woman sent $15,000 to “Carson Jacks,” a purported oil roughneck in the Gulf of Mexico she fell in love with online, after he told her he’d contracted malaria.  In another, a second Indiana woman sent $6,300 to “Thomas Ken,” a purported Irish ship captain she fell in love with online, to fix his ship. ”

Within 2 years, Mr. Orogun had to receive $1.3 million across several banks in the US and subsequently transferred the money to Africa through Ping. He faces up to 20 years in federal prison and is set to be sentenced next year.

Similarly, Ping’s IT/Business Development Manager, Aleoghena Okhumale, received a prison sentence of 42 months after pleading guilty to knowingly transmitting illegally-derived funds. 

Ping Express now faces five years of probation and a fine of up to $500,000. 

One too many money laundering allegations on Nigerian-related fintech companies. 

  • Earlier this month, 56 bank accounts belonging to the Nigerian fintech champion, Flutterwave Payment Technology Limited and 6 other businesses were frozen by a High Court in Kenya over money laundering. An investigator with Assets Recovery Kenya’s Asset Recovery Agency (ARA). —Isaac Nakitare said there was no evidence of retail transactions from customers paying for goods and services via Flutterwave.
  • In the same token, Nigerian fintech companies, Kora Limited Technologies saw 14 of its Kenyan accounts frozen over the alleged illegal channelling of  money into the country. Likewise, Kandon Technologies Limited was accused of fraud in Kenya. Together, they have been accused of pumping $51 million into the country.

The aforementioned startups with allegations in Kenya have since denied the allegations, citing that the allegations are politically motivated. 

Tags: Money LaunderingPing Express
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