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As the fintech industry continues to grow rapidly across Africa, companies seeking to expand their reach face a daunting challenge: navigating the complex web of regulatory requirements and licensing processes that vary significantly from country to country. <a href="https://www.linkedin.com/in/adeyemiesan/?originalSubdomain=uk" target="_blank" rel="noopener">Adeyemi Edward Esan,</a> VP of Corporate Licensing and Regulatory Reporting at the leading fintech company Aza Finance, has firsthand experience tackling this issue head-on. 
“The fragmentation of banking systems and financial infrastructure across African countries creates major hurdles for fintechs looking to expand their services,” explains Esan. “Each market has its own unique regulatory landscape, and the licensing process can take anywhere from 4 months to over a year in some cases.” 
To apply for a license in a new market, companies typically need to set up a local presence, which includes establishing an office and hiring key personnel like a Head of Compliance, Finance personnel, and senior management/directors.&nbsp; When application duration coincides with a change in government administration, this can lead to significant delays as the new administration may hesitate to approve applications submitted under the previous one. 
When regulations are over, banking systems and financial infrastructure across the continent develop unevenly, making consistent service delivery difficult. For example, in the Francophone region, where only one central bank regulates the financial sector across all the French-speaking countries, transfers between banks can take 2-3 days, compared to instant settlements in markets like Nigeria. 
This lack of real-time settlement capabilities poses challenges for fintechs trying to provide seamless cross-border payment services. Not to mention the paper-based ID system in some countries thereby making forgery easy and verification difficult or unreliable.&nbsp; 
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Adeyemi, who has a background as a qualified lawyer in Nigeria, has seen the importance of adopting a business-minded approach when working in-house for a fintech company. “In a law firm, your role is more about interpreting the law and providing advice. But in a company, you have to deeply understand the business and then align your legal and compliance work with the overall business strategy and direction,” he says. 
This holistic understanding of the business has been crucial for Adeyemi in his role, which spans legal, compliance, regulatory reporting, and anti-money laundering (AML) responsibilities across multiple countries. 
I’m essentially managing three different yet interconnected areas of the business in a 3-in1 role – Corporate Counsel,&nbsp; Compliance&nbsp; Manager, and the Regulatory Reporting Manager,” he notes. “It’s a lot of moving parts, but it’s also incredibly valuable experience.” 
He acts as the Money Laundering Reporting Officer (MLRO) for two UK entities, which is approved by the UK Financial Conduct Authority (FCA).&nbsp; 
Adeyemi’s role involves managing regulatory reporting teams across four countries and ensuring compliance with pre-licensing, licensing, and post-licensing requirements. 
“The role of regulatory compliance and proper contract negotiations cannot be overstated when it comes to ensuring business revenue,” Esan emphasizes. “If you fail to comply with your regulatory obligations, ensuring fines can easily erode any revenue you might have generated. Poorly structured agreements have resulted in the company not making as much money as it should have. It’s critical to align the commercial terms with the business strategy and ensure that the partnership is mutually beneficial. This involves understanding the technical, financial, and compliance requirements on both sides and capturing them accurately in the contract. Even with a great sales team and an amazing product, if the legal and commercial aspects are not properly sorted out, you won’t be able to maximize the revenue potential of that partnership.” 
Founded as Bitpesa, a pan-African bitcoin exchange, <a href="https://azafinance.com/" target="_blank" rel="noopener">AZA Finance</a> has evolved into a global money transfer company with offices in London, Dubai, Nigeria, and 4 other countries and supporting businesses in over 115 countries worldwide. Adeyemi’s work has seen him build its regulatory unit from one man to a team of about ten overseeing a global expansion. &nbsp; 
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One of the key challenges Adeyemi has navigated is the difficulty in verifying documents and information from certain African countries. “In some markets, there’s simply no reliable way to verify the authenticity of documents or the identity of individuals. This creates a major risk that we have to carefully manage through creative enhanced due diligence processes.” 
To address these complexities, Adeyemi emphasizes the importance of adopting a risk-based approach to compliance. “You have to focus on the biggest vulnerabilities for your business. This allows you to plug the most critical gaps while still maintaining a robust compliance framework.” 
Looking ahead, Adeyemi is particularly interested in deepening his expertise in financial compliance and risk management. “It’s a constantly evolving space, especially with the rapid advancements in technology. I see a lot of opportunities to contribute to the industry’s efforts in areas like fraud prevention and cross-border payments.” 
As fintechs continue to push the boundaries of financial inclusion and innovation across Africa, Esan’s experience in navigating the regulatory landscape will be invaluable. By sharing his insights and strategies, he aims to help other fintech leaders overcome the challenges of multi-country expansion and unlock new growth opportunities. 
Read also: <a href="https://technext24.com/2022/02/07/from-environment-to-tech-clara-odero-talks-about-working-at-2-unicorns-1-decacorn-and-running-a-startup/">From Environment to tech: Clara Odero talks about working at 2 unicorns, 1 decacorn and running a startup</a>

Navigating the Complexities of Multi-Country Licensing for Fintech Expansion

Technext.ng

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