Previous thread: https://www.nairaland.com/6844124/kuda-bank-called-efcc-friend

Kuda Bank has warned its customers that it will close accounts found to be engaged in the transaction of cryptocurrency.

The bank stated that it can’t facilitate cryptocurrency transactions because it violates the policy of the Central Bank of Nigeria which regulates all financial institutions in the country.

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

Kuda Bank’s position on cryptocurrency
Kuda Bank was the first Nigerian bank to gain collaboration with Binance, a popular crypto exchange, and it was a big advocate of cryptocurrency at the time, according to a source. However, everything changed after the apex bank placed a ban on the transaction of cryptocurrency.

Following the CBN’s announcement, on February 12, 2021, Kuda Bank delivered a message to customers notifying them of its new cryptocurrency position.

The message read, “In the light of the recent letters and statements issued by the Central Bank of Nigeria concerning transactions relating to cryptocurrency, please note that Kuda Microfinance Bank is not allowed to and does not deal in, or facilitate the trading of, any form of cryptocurrency.

“Consequently, we strongly advise that you do not use your Kuda account for cryptocurrency-related activities so you don’t get into trouble with the law.”

Kuda reacts to claims of accounts closure
Reacting to recent complaints, the bank has issued a statement to its customers reiterating its resolve to obey the rules and regulations of the CBN as it carries out its operations.

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

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

But as much as we are on your side, we are also a licensed financial institution and our banking license comes with 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 bank of the free 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 demands.

In some cases, this could be as simple as asking the customer to explain what they use their account for. This is part of a standard KYC (Know Your Customer) process for any financial institution.

In cases of clear fraud, the law demands that we report the customer to the appropriate authorities and close their account with us so that they won’t continue to defraud other people of their money with that account.

Remember that it could be you being defrauded, and we must do everything in our power to prevent this from happening.

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

This is why, for example, we have advised everyone not to use their Kuda account for cryptocurrency transactions of any kind, otherwise we’ll be forced to close their account as demanded by regulations. As of today, licensed financial institutions like ours are prohibited from enabling cryptocurrency transactions and we are not allowed to ignore this prohibition. It is simply what the law demands.”

Another perspective
“Kuda bank does not close accounts for no cause,” a source inside Kuda Bank told Nairametrics. “The CBN policy must have been broken by the accounts that were cancelled.”

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

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

https://nairametrics.com/2021/11/11/kuda-bank-says-it-cant-facilitate-cryptocurrency-transaction/

Here is the full statement

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

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

But as much as we are on your side, we are also a licensed financial institution and our banking license comes with 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 bank of the free 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 demands.

In some cases, this could be as simple as asking the customer to explain what they use their account for. This is part of a standard KYC (Know Your Customer) process for any financial institution.

In cases of clear fraud, the law demands that we report the customer to the appropriate authorities and close their account with us so that they won’t continue to defraud other people of their money with that account.

Remember that it could be you being defrauded, and we must do everything in our power to prevent this from happening.

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

This is why, for example, we have advised everyone not to use their kuda account for cryptocurrency transactions of any kind, otherwise we’ll be forced to close their account as demanded by regulations. As of today, licensed financial institutions like ours are prohibited from enabling cryptocurrency transactions and we are not allowed to ignore this prohibition. It is simply what the law demands.

We’re not an unreasonable organisation, so anyone who uses their kuda account for legitimate personal or business transactions has absolutely nothing to be concerned 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 keep you happy, support your legitimate business and continue to celebrate your successes with you.

If you have any complaints about the way we have handled your account with us, or you’re unhappy with a request we have made about your transactions, please send a message to complaints@kudabank.com and we’ll reply you as soon as possible.

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

Love,

The kuda Team

Kuda is canceled!

-Transferring out my funds
-Closing my account, and
-Deleting the app right now

A bank that sells out customers to the feds is not a bank I wanna remain with.

Totally disappointed with this so called “Bank of the free”

BS!

You all ran to kuda because of the convenient banking system and easy KYC documentation. Now the chips are down...you all still spilling trash...

I use kuda and av got millions in my account which they won't dare report me to EFCC because I don't accept suspicious or fraudulent Transactions neither inflow nor outflow on my account.

I'm a financialist n I know what's right n what's wrong.

I can't count how many suspicious accounts n transactions I've reported to the CBN as regarding AML.

STOP JUSTIFYING FRAUD, WHAT'S BAD IS BAD. IF YOU ARE LEGIT, YOU HAVE GOT NOTHING TO FEAR N WORRY ABOUT IRRESPECTIVE.

Great weekend guys. TGIF.

The same government that instructed CBN to ban crypto currency are trading it, the same government that arrested obi cubana for money laundering are also guilty of the same offence.

Kuda bank aren't wise, I see Nigerians deleting their app, I see them unable to pay their staffs, I see them folding up in the coming months.

This I have seen.

The useless untrained terrorists will soon troop here with their insult as usual

The explanation I've been yearning for is...

1. Why was the customer called for something else only to find out EFCC was waiting for him?
2. Assuming KUDA is right, what's the account holder offence then?
3. I believe there's no need for long grammar, just hit the nail on the head and then we decide where to throw our funds.


P.S: I no geh kobo for my KUDA account..

They fall hands sha

Nigerians don't like accountability. The leaders are only a mirror of the people they lead. We have so many weak institutions because there are simply no checks and balances.

All this ruckus because a financial institution rightfully flagged an account due to a suspicious transaction? Financial institutions flag transactions for different reasons, it's not just about the sum of the money.

The person with the said blocked account can tender the required evidence and they should be absolved of any wrongdoing.

If it's about cryptocurrency, then banks have been explicitly warned by CBN not to facilitate crypto currency transactions of any kind. People should take it up with CBN and Emiefele and not Kuda.

I don't support the stupid herd mentality brewing on social media, neither do I have any incentive to support or crucify Kuda.

I will continue to use my Kuda account until I have a substantial reason not to do so.

Una never chew chinchin
After seeing the number of customers you will lose this week, una go disobey CBN by Force.

Yimu

Which bank be this one??

Na crypto transaction Lala friend go do

Kuda will soon go bankrupt. I pity dem

Which bank be this one

Bunch of scammers

JaySterling:
Kuda is canceled!

Deleting the app right now

I was thinking of opening an account with them.
Thank God I didn't make that horrible mistake.
Useless bank.

I've been using this bank for a while now and they've been very ok. It's good Kuda came up with this statement, as it clarifies a lot of ambiguity. I believe as a people, Nigerians have a problem following laid down regulations. That's why the system is so messed up: most people want to just get their way, not minding how it affects others. The cumulative effect of that is where we are as a nation today.

joey150:
Nigerians don't like accountability. The leaders are only a mirror of the people they lead. We have so many weak institutions because there are simply no checks and balances and anybody that dare tries to introduce one is seen as an "enemy of the people."

All this ruckus because a financial institution flagged an account due to "suspicious transaction?"

The person with the said blocked account can tender the required evidence and they should be absolved of any wrongdoing.

If it's about cryptocurrency, then banks have been explicitly warned by CBN not to facilitate crypto currency transactions of any kind. People should take it up with CBN and Emiefele and not Kuda. They are regulated by the CBN and must operate under their directives.

I don't support the stupid herd mentality brewing on social media neither do I have any incentive to support or crucify Kuda.

I will continue to use my Kuda account until I have a substantial reason not to do so.

Exactly!

talk2hb1:
Be Expecting Their response!
But in the real sense, most of this banks are being gagged by CBN, The way media is being gagged by Lai Mohammed.
They can't operate outside the confinement of the law, wishing them all the best.

Na so oooo!

RichDad1:
If you’re legit, you have nothing to fear.

If you use Binance P2P, simply mark a particular seller/buyer's name that is within your usual transaction range__ make him your steady buyer/seller...

If you don't get it___

Kuda really delayed in replying
Spontaneous reply kuda saved much face
which kuda prevented the efflux of customers.
Not siding anyone but this Kuda happened to anyone.
You gerrit?

War against crypto is a war against innovation

Going going gone
Too hell with them
Nonsense and buhari

Kuda na bastard

They could not even provide me ATM card after several demand. I could not transfer money from my account to other Banks. KUDA started well but ending worse. Sorry!

This explanation is so annoying, how can you call people with crypto currency fraudsters.

American government are not even clamping down on Americans making money online through crypto currency. Not even UK or EU.

But the country that have been pushed to poverty capital of the world have ban crypto currency. Emefele and BUHARI are the two most useless humans on earth

Be Expecting Their response!
But in the real sense, most of this banks are being gagged by CBN, The way media is being gagged by Lai Mohammed.
They can't operate outside the confinement of the law, wishing them all the best.

Say no to crime

Evercurious:


And how is crypto trading a crime? Bunch of sadists

Easy. That's a general quote.

May be you saw, crypto is a crime. Don't jump guns.