The Central Bank of Kenya (CBK) has flagged 800 personal bank accounts that will be under close scrutiny for the next 10 days.
Why CBK is monitoring 800 personal bank accounts
The Central Bank has been watching the accounts for 3 months
CBK suspects that individuals who own the accounts may attempt to launder illicit money as the September 30 deadline for the old Sh1,000 note approaches.
According to the Central Bank, Sh100 billion of the old currency notes is still in the hands of private individuals who may attempt to bank the money, which is believed to be ill-gotten.
The authorities confirmed that the 800 accounts have been under scrutiny over the last three months and the huge transactions have sparked formal investigations.
Strict guidelines ahead of September 30 Sh1,000 note deadline
CBK will also be closely monitoring transactions that require sizable amounts of cash such as purchasing vehicles and investment in shares.
"At this point in time the level of vigilance is extremely high. Banks have been reminded to report any suspicious financial activity using know-your-customer rules
"We are continually advising banks to scrutinize every person who comes to exchange notes or makes unusually high deposit," Kenya Bankers Association (KBA) CEO Habil Olaka confirmed.
DPP Noordin Haji recently clarified that all old Sh1,000 notes being held by police as evidence will remain in their custody until the courts offer direction on how they will be demonetized.
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