Liberia’s Central Bank Tightens Grip: Cititrust and TipMe Face Enhanced Supervision Amidst Financial Woes
The Central Bank of Liberia (CBL) has implemented stringent regulatory restrictions on Cititrust Savings and Loans Liberia Limited and TipMe Liberia Limited, citing grave concerns over their financial health, governance frameworks, and internal control mechanisms. This decisive intervention follows mounting reports of Cititrust’s alleged inability to honour customer withdrawal requests, prompting an intensified supervisory oversight and the commissioning of an independent forensic investigation into both entities.
In a public statement, the CBL detailed that its supervisory activities revealed significant issues within Cititrust’s financial condition, governance, and internal control systems, necessitating its placement under enhanced supervision. To safeguard depositors and institutional assets, the Bank has deployed resident supervisors to oversee Cititrust’s daily operations and imposed immediate restrictions, including a moratorium on new deposits and loans, and a prohibition on asset disposals without prior CBL written approval. These measures are being enforced under the New Financial Institutions Act of 1999, the National Payment Systems Act of 2014, and other pertinent regulations.
Similar supervisory concerns have been identified at TipMe Liberia Limited, a licensed payment service provider linked to Cititrust through common ownership. Consequently, TipMe is also subject to appropriate supervisory restrictions. The CBL has commissioned an independent forensic and special investigation to thoroughly assess the financial standing of both institutions, ascertain compliance with applicable laws, and determine necessary regulatory actions. The Bank has warned that any identified breaches will be met with appropriate supervisory, administrative, civil, or legal measures.
The CBL clarified that these precautionary measures are designed to protect depositors, preserve assets, maintain accurate records, and ensure the integrity of the ongoing investigation. While owners and management were instructed to provide additional capital and liquidity, these corrective measures have reportedly been insufficient. The Bank cautioned that these restrictions do not represent a final determination of the institutions’ financial condition or the outcome of regulatory proceedings.
Affected depositors are encouraged to submit complaints and concerns through official channels to be announced by the CBL, which will aid in a comprehensive understanding of the situation. However, the Bank stressed that submission does not guarantee entitlement or repayment. The CBL urged reliance on official communications and caution regarding unofficial information. It appealed for calm and adherence to lawful channels, assuring the public that measures are in place to protect records, assets, customers, and the broader public.
Crucially, the CBL emphasized that these issues are specific to Cititrust and TipMe and should not be construed as indicative of the overall health of Liberia’s financial sector. Licensed commercial banks, non-bank financial institutions, and payment service providers continue to operate normally under robust oversight. The Bank reaffirmed its commitment to financial stability, consumer protection, and public confidence, promising that all actions will adhere to due process and applicable laws.
