Nigeria’s EFCC Warns OPay Over Weak KYC and Fraud Vulnerabilities

The Economic and Financial Crimes Commission (EFCC) has issued a firm warning to OPay, directing the fintech company to strengthen its Know-Your-Customer (KYC) processes, anti-fraud systems, and internal controls to prevent insider abuse and financial crimes.

The warning came during a courtesy visit by OPay CEO, Mr. Steven Wen, and senior executives to the EFCC headquarters, where EFCC Chairman Mr. Ola Olukoyede—represented by his Chief of Staff, Commander Michael Nzekwe—emphasized the need for robust regulatory compliance across all fintech operations.

EFCC’s Position: Strengthen KYC and Shut Out Fraud

Olukoyede urged OPay to ensure its platform is not used for money laundering, fraud, or other illicit financial activities.

“Work on Know Your Customers (KYC), don’t give room for fraud, don’t allow your company to be used for money laundering, and comply with every law of the land.”

He also commended OPay’s high local-content workforce, noting that while “99% local employees” is commendable, compliance must be demonstrated through action, not just commitment.

Insider Abuse: EFCC Flags Internal Risks

Director of Investigation, Abdulkarim Chukkol, cautioned OPay to monitor insider threats closely, warning that weak internal oversight can expose millions of users.

“Systems integrity is very important… insider abuse is very rampant. No matter how tight your system is, when you bring in someone who can ‘do and undo,’ everyone is at risk.”

He encouraged OPay to go beyond minimum CBN requirements and invest in deeper KYC and layered security systems.

OPay Responds: Compliance, Customer Protection, and Growth

OPay CEO Steven Wen reaffirmed that the company places:

Regulatory compliance as non-negotiable

Customer satisfaction through secure and innovative services

Revenue growth supported by strong compliance frameworks

He emphasized that OPay continues to prioritize adherence to local laws and regulatory expectations.

Background: Nigeria’s Fintechs Under Tighter Regulatory Scrutiny

Nigeria’s fintech sector has faced intense compliance crackdowns as regulators push for stronger AML/KYC controls:

The CBN fined OPay and Moniepoint N1 billion each for compliance lapses uncovered during routine audits.

In April 2024, the CBN suspended new customer onboarding across major fintechs—including OPay, Palmpay, Kuda, and Moniepoint—over concerns about illicit FX flows and weak KYC structures.

Several fintechs paused onboarding, closed suspicious accounts, and implemented enhanced security protocols to meet regulatory standards.

As fintech adoption expands nationwide, regulators are insisting on stricter safeguards to protect consumers and maintain financial system integrity.