OPay, a popular mobile money service provider, is introducing a system of checking the physical addresses of all merchants who use its OPay Business platform. This action is in line with the strict regulations set by the Central Bank of Nigeria (CBN) to verify the identities of customers and prevent illegal financial activities such as money laundering.
OPay staff will personally visit the locations of these merchants to help with the verification process. To ensure the safety of merchants and avoid fraud, OPay recommends that merchants verify the identity of any staff who visit them for this purpose. OPay representatives will carry various forms of identification, including OPay ID cards, Lark business cards, BD tools, or credentials from the General Agent Platform.
OPay has assured merchants that its representatives will never request sensitive information such as passwords, OTPs, PINs, or any other details related to their OPay Business accounts during the verification process.
This initiative follows the CBN’s directive in response to money laundering concerns and the need for improved KYC processes. In April 2024, the CBN froze 1,146 bank accounts linked to unauthorized forex transactions and restricted new account openings by mobile money operators. Subsequently, operators like PalmPay and Kuda have also enhanced their verification processes, including facial recognition and address-proof uploads.
The CBN has indicated that mobile money operators, including OPay, PalmPay, and Moniepoint, will resume onboarding new customers in the coming months. However, the CBN will enforce stricter measures to ensure thorough verification of both new and existing customers to prevent illegal activities.
OPay’s compliance with the CBN’s directives underscores the ongoing efforts to enhance the security and integrity of Nigeria’s financial ecosystem. Merchants are encouraged to cooperate with verification efforts and remain vigilant against fraud to ensure smooth and secure operations.
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