Kenya’s central bank cracks the whip on 5 banks for handling stolen money and fines them $3.89 million

CBK said it had fined the five commercial banks a total of Sh392.5 million ($3.89 million) in connection with their theft of funds at the National Youth Agency.

On Wednesday, CBK said it had fined five commercial banks a total of Sh392.5 million ($3.89 million) in connection with the theft of funds at the National Youth Agency.

The five banks are Standard Chartered Kenya, Equity, Diamond Trust, Co-operative Bank and KCB Group.

The industry regulator accused the five banks of among others failing to report large transactions, failing to undertake proper due diligence on customers, approving large transactions without proper documents and failing to report suspicious transactions.

According to CBK, all the five banks received a total of more than Sh3 billion ($30 million) from the national youth service on behalf of their customers but failed to notified the lender contrary to what the law states.

Central bank said it had discussed its findings with all the five banks and they had pledged to ensure compliance with all laws in the future and to draw up plans for sealing gaps that were identified.

Dozens of senior government officials and business people were charged in May with various charges related to the theft of nearly $100 million from the youth agency, NYS, marking a new effort to crack down on widespread graft.

Central Bank has meanwhile forward its investigation findings onto criminal detectives to assess whether they would bring any charges.

More banks are set to be investigated and punished if found guilty, the central bank added.

JOIN OUR PULSE COMMUNITY!

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Amazing transformation of 21-year-old man bullied for being born different (video)

Amazing transformation of 21-year-old man bullied for being born different (video)

Abel Mutua's movie makes over Sh4M in 5 days

Abel Mutua's movie makes over Sh4M in 5 days

Sh79,000 per month jobs for Kenyans without degrees

Sh79,000 per month jobs for Kenyans without degrees

How Janet Mbugua's husband Eddie landed Sh240 million deal with Chinese investors

How Janet Mbugua's husband Eddie landed Sh240 million deal with Chinese investors

5 things you should never do to please a woman

5 things you should never do to please a woman

British MP claims she didn't know her flat was owned by the Kenyatta family

British MP claims she didn't know her flat was owned by the Kenyatta family

Janet Mbugua's husband thrown at the centre of nasty fight at Ole Sereni Hotel [Video]

Janet Mbugua's husband thrown at the centre of nasty fight at Ole Sereni Hotel [Video]

Tiwa Savage breaks silence after her raunchy tape leaked online [Screenshot]

Tiwa Savage breaks silence after her raunchy tape leaked online [Screenshot]

Diamond Platnumz splashes Sh5.2 Million on new Gold & Diamonds Chain [Video]

Diamond Platnumz splashes Sh5.2 Million on new Gold & Diamonds Chain [Video]