Five Kenyan banks fined for aiding corruption

Uhuru Kenyatta
Kenya's President Uhuru Kenyatta delivers a statement to members of the media at the State House in Nairobi, Kenya September 21, 2017. REUTERS/Baz Ratner

Kenya’s Central Bank on Wednesday penalised five banks in the East African nation for facilitating the transfer of money looted from the National Youth Service (NYS).

The banks have been fined between 200,000 dollars and 1.5 million dollars for their role in the scandal, Central Bank Governor, Patrick Njoroge, said in a statement on Wednesday.

The five banks are Kenya Commercial Bank (KCB), Standard Chartered Bank (SCB), Cooperative Bank, Diamond Trust Bank (DTB) and Equity Bank.

“The investigations prioritised the banks that handled largest volumes of cash following serious concerns that came to light in May related to the channelling of the NYS funds,” said Mr Njoroge.

He noted others that handled smaller volumes were still under probe.

According to the apex bank, the five institutions committed several violations namely failure to report large cash transactions and failure to undertake adequate customer due diligence.

Others are lack of supporting documentation for large transactions and lapse in reporting suspicious transactions to the financial reporting centre.

Kenya reportedly lost 90 million dollars through the NYS scandal, one of the biggest frauds in a government institution, and several suspects have been charged in court for the crime.

(Xinhua/NAN)


NEVER MISS A THING AGAIN! Subscribe to our newsletter

* indicates required

DOWNLOAD THE PREMIUM TIMES MOBILE APP

Now available on

  Premium Times Android mobile applicationPremium Times iOS mobile applicationPremium Times blackberry mobile applicationPremium Times windows mobile application

TEXT AD: To place a text-based advert here. Call Willie - +2347088095401


All rights reserved. This material and any other material on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from PREMIUM TIMES.