TuesdayNovember 09, 2021 / 1:25 PM / by Bolanle Olabimtan of TheCable/Header Image Credit: Rise Vest

TheCable is reporting that a federal high court sittingin Abuja has vacated the interim order freezing the accounts of Rise VestTechnologies Ltd, a fintech company.

The Central Bank of Nigeria (CBN) had on August 17,2021 secured, through an ex parte motion, an order freezing the accounts ofsome fintech companies for 180 days over alleged forex infractions.

The affected companies are Rise Vest TechnologiesLimited, Bamboo Systems Technology Limited, Bamboo Systems Technology LimitedOPNS, Chaka Technologies Limited, CTL/Business Expenses, and Trove TechnologiesLimited.

Rise Vest Technologies Ltd, in a motion filed throughits counsel, Seni Adio, had submitted that there was no evidence that itengaged in unlawful conduct, adding that the CBN did not meet its burden ofproof in support of its allegations.

Responding, Mathew Onoja, CBN's counsel, argued thatthe ex-parte order of the court was proper, lawful, and valid.

He contended that the order was in accordance with theprovisions of Section 97 (1) of the Banks and Other Financial Institutions Act(BOFIA) 2021, which empowered the plaintiff/respondent (CBN) to invoke thejurisdiction of the court via an ex parte application.

Ruling on the application on Monday, Taiwo O. Taiwoheld that the CBN could not rely on a circular to freeze the bank account of acompany.

The judge noted that the CBN failed to provide any lawshowing that it is illegal to deal in cryptocurrency in Nigeria, adding thatthe CBN circular, referenced as BSD/DIR/PUB/LAB/014/001 of February 5, 2021, isnot a law.

The judge, among others, held that although the CBNhas the power to investigate any infraction, the infraction must relate toBOFIA or any other enactment administered by the regulator.

"I have perused the counter affidavit of therespondent and I see that the reason for freezing the account of the applicantis based on the alleged infraction of the circular of the CBN. The law is tritethat any conduct that must be sanctioned must be expressly stated in a writtenlaw," he said.

"Being unknown to law, circulars cannot create anoffence because it was not shown to have been issued under an order, Act, Lawor Statute.

"The learned counsel for the respondent has alsoraised the issue of public policy in his submissions against the application.

"Can this court decide this application based onpublic policy as being urged on it by the learned counsel for the respondent? Ithink not.

"I hereby discharge the interim freezing order of thiscourt made on August 17, 2021, made against the defendant/ applicant."

The judge ordered the banks - Zenith Bank Plc andGuaranty Trust Bank - to immediately grant the firm unfettered access to itsaccounts.

Credit:

The post 'Amere circular is not law' - court faults CBN, unfreezes Rise Vest's accounts first appeared in TheCable.ng on November 09, 2021. 

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