Diamond Bank Plc says the Central Bank of Nigeria and the Economic and Financial Services Commission have frozen the bank accounts of Cashflowabi Cooperative Society and Cashflowabi Networks Limited for allegedly operating as fund managers without operating licences.
It said the directive to freeze their banks accounts with Diamond Bank came on the heels of a court order obtained by the EFCC in November 2012.
In a statement on Tuesday, Diamond Bank made the clarification following complaints that some of the fund managers’ customers besieged some of its branches, demanding for their funds.
The customers were said to have protested at some branches of Diamond Bank across the country.
However, Diamond Bank maintained the aggrieved protesters were customers of the fund managers.
The statement read, “It has been brought to the attention of the management of Diamond Bank Plc that some clients of Cashflowabi Cooperative Society and Cashflowabi Networks Limited acting on an SMS broadcast to their respective telephone lines by one Dr. Philemon Gora have besieged some of the bank’s business locations ostensibly to collect cash from the accounts of Cashflowabi at Diamond Bank.
“Following numerous complaints from the clients of Cashflowabi Cooperative Society and Cashflowabi Networks Limited, the CBN in August 2012 directed the bank to stop withdrawals from the accounts of the two companies as they were operating as fund managers without registration and operating licences from the appropriate authorities.”
It further said, “Subsequently, the EFCC obtained an order in November 2012 in suit No: FHC/KD/CS/69/2012 to freeze the accounts of the Cashflowabi companies. Sequel to this, the accounts of Cashflowabi Cooperative Society and Cashflowabi Network Limited domiciled with the Bank were closed in 2014 after a series of garnishee orders and court injunctions by various claimants on the accounts.
Diamond Bank noted that the two fund managers were aware of the closure of their accounts with it.
It added, “The clients of Cashflowabi are not customers of Diamond Bank Plc and therefore have no direct dealing with the bank but seem to be unaware that the SMS broadcast to their telephone lines asking them go to Diamond Bank to cash the cheques issued to them by Cashflowabi is false information constructed to divert attention and deceive as the company has no account or funds at Diamond Bank.”