Federal High Court in Abuja has issued an interim order to freeze accounts held by FairMoney Microfinance Bank Ltd, PalmPay Limited, and Opay Digital Services Limited.
The order mandates these companies to reverse N139,630,000 credited to certain customers due to a system glitch at TAJ Bank Ltd.
The order follows a motion filed by TAJ Bank Ltd and six of its customers on July 23, 2024, in case number FHC/ABJ/CS/1018/2024. The court action was taken against FairMoney, PalmPay, and Opay, with Nigerian Interbank Settlement System Plc also named as a respondent.
TAJ Bank’s legal team argued that, under the Central Bank of Nigeria’s October 2017 regulations, any funds mistakenly credited to accounts should be returned to their original source.
The regulations aim to enhance Know Your Customer (KYC) practices, reduce fraud, and ensure the integrity of the banking system.
Muhideen Olujinmi, Unit Head of the Investigation and Fraud Management Unit at TAJ Bank, claimed that the glitch allowed unauthorized transactions, transferring funds from TAJ Bank’s accounts into those of the respondents.
The bank requested the court to freeze these accounts and reverse the erroneous transfers to prevent further financial harm.
Justice Peter Lifu granted the interim freezing order on July 26, 2024. The order requires FairMoney, Opay, and PalmPay to disclose the amounts held in the affected accounts within seven days and to adhere to the court’s directives.
The court also instructed TAJ Bank to provide a guarantee against potential losses that may arise from the interim orders.
The case is scheduled for further hearing on August 12, 2024. FairMoney, Opay, and PalmPay were not represented in court during the initial hearing.
TAJ Bank’s lawyer, Rilwan Idris, confirmed that his clients have complied with the court’s order, including filing an affidavit to protect the respondents from any potential losses.
