News

June 11, 2024

Liberia’s Central Bank sanctions MTN Mobile Money

Liberia’s Central Bank sanctions MTN Mobile Money

The Central Bank of Liberia, CBL, has wielded the big stick on Lonestar Cell MTN Mobile, Liberia’s largest mobile money company and subsidiary of the South Africa’s telecommunications behemoth, MTN.

The country’s financial regulator faulted the mobile money company for several regulatory infractions and imposed on it (mtn) a fine of millions of Liberia’s dollars.

A report published in FrontPageAfrica (FPAfrica), a newspaper in Liberia claimed that a letter addressed to Mr Rahul De, the Managing Director of the company, CBL noted that the company was being fined because of “continuous violations of CBL’s mobile money regulations and failure to conform to the minimum corporate governance requirements by the CBL.”

However, rather than paying the fine and complying with the CBL directives, the CEO instead wrote to the CBL and appealed that the fine be waived.

FPAfrica added that CBL, in another letter outrightly rejected the appeal and re-affirmed its directives that the fine be paid immediately and that the company should bring itself into compliance with the CBL regulations.

The CBL further stated that since MTN Mobile Money became operational, it has been in continuous violation of the CBL regulations.

In a related development, the local Liberian shareholders of MTN Mobile Money have sued the company in the Commercial Court of Liberia for non-compliance with their rights as shareholders.