Foreign Exchange Rates

DStv Advert_090724

DStv Advert_090724

SBT Tanzania Advert_291123

Thursday, 13 September 2018

FIVE TOP KENYAN BANKS FINED $3.92M FOR HANDLING STOLEN YOUTH FUNDS

The Central Bank of Kenya has fined five top banks millions for their role in handling more than $35 million stolen from the National Youth Service (NYS) funds.

The banking regulator said Wednesday that it had concluded its first phase of investigations of the banks that were used by persons suspected of transacting illegally with the NYS.

"The investigations prioritised banks that handled the largest flows, namely; Standard Chartered Bank Kenya Ltd, Equity Bank Kenya Ltd, KCB Bank Kenya Ltd, Co-operative Bank of Kenya Ltd, and Diamond Trust Bank Kenya Ltd," said CBK in a statement.

The lenders were found to have violated the anti-money laundering and combating financing of terrorism laws and regulations by failing to report large cash transactions, failure to undertake adequate customer due diligence, lack of supporting documentation for large transactions, and lapses in reporting of suspicious transaction reports to the Financial Reporting Centre.

Each of the five banks has been penalised based on the extent of violations, which will see KCB Group pay the largest fine of Ksh149.5 million ($1.5 million). Equity has been fined Ksh89.5 million ($895,000), StanChart will pay Ksh77.5 million ($775,000), DTB Ksh56 million ($560,000) and Co-op Bank Ksh20 million ($200,000).

No comments:

Post a Comment