Kenyan bankers set strict rules for big cash withdrawals to curb fraud

david nganga

June 25, 2018 6:37 PM

This comes barely days after about 10 banks were put on the spotlight for their possible role in Sh9 billion NYS scam.

The Kenya Bankers Association (KBA) has set out tough rules for high value transactions in bid to shed off the tag of being branded conduits of corruption deals.

In a memo issued to to all member banks and copied to Central Bank of Kenya (CBK), cash transactions of over 10 million will require customers to give a three-day written notice before being allowed to move money.

They will also be required to reveal the source of funds, with supporting evidence, for deposit transactions, and the purpose of the money.

“These guidelines are to be applied alongside existing Central Bank prudential guidelines and provisions of the Proceeds of Crime and Anti-Money Laundering regulations,” CEO Habil Olaka said.

Identification documents

Under the tough rules, customers will state why a Real Time Gross Settlement (RTGS) cannot be carried out and give copies of the ID or passport. The identification documents of the beneficiaries will also be required.

Cash transactions amounting to Sh1 million will be approved by the branch manager, while transactions of Sh10 million to Sh20 million will be approved by regional branch manager or senior manager.

Amounts higher than this will be approved by the head of branch banking or director.

The new development comes barely days after about 10 banks were put on the spotlight for their possible role in Sh9 billion National Youth Service (NYS) scam.

david nganga