Kenya's CBK Governor warns banks as hunt for NYS billions intensifies
About six local banks have been implicated in the irregular transactions and could face sanctions.
In a press briefing on Tuesday, the CBK governor announced that the banking regulator and the office of the Director of Criminal Investigations (DCI) had launched a probe on the banks involved in the NYS scandal which saw the public lose more Sh9 billion ($90m) through corrupt deals.
"Banks have no excuses because they know the law," the governor said.
Dr. Njoroge warning came amid questions on whether the lenders met their obligations in reporting suspect cash transactions to CBK.
The governor said any bank official or CBK staff who abetted irregular payments in the Sh9 billion scandal would not be spared.
Central Bank of Kenya (CBK) has ratcheted up investigations into unnamed commercial banks and their executives involved in the multi-billion scandal.
According to a local daily, about six local banks have been implicated in the irregular transactions and could face sanctions.
"Some banks allowed withdrawal and deposit of money against the CBK regulations but investigations are ongoing,” Director of Public Prosecutions (DPP) Noordin Haji said yesterday during a press briefing.
Mr. Haji announced that he had a watertight case against 64 suspects – individuals and companies in phase one of the crackdown.
They include more than 40 public servants and 14 directors and proprietors of business entities that worked with the National Youth Service since 2013.
On Monday, detectives from the Flying Squad and Special Crimes Prevention Unit raided the several suspect’s homes including the home of embattled Public Service PS Lillian Mbogo-Omollo, who was early this month forced to step aside to pave way for investigations into the Sh9 billion NYS scandal.
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