The Central Bank of Kenya (CBK) has revoked the license of Legacy Forex Bureau. In a Gazette Notice No. 101, the Government’s fiscal agent has taken this action under section 33D (1) of the CBK Act.
Under the law, the CBK may pull the plug on a forex exchange bureau in cases where the firm fails to conduct foreign exchange transactions within six (6) months of the license issue’s date, and the bureau is found to have ceased to perform the operations authorized by the license.
In the past, the CBK has also suspended dealers from the forex market over failure to observe anti-money-laundering rules on some trades.
The Central Bank of Kenya may also revoke a foreign exchange bureau’s license in cases where the company is incapable of existing in law or of carrying on its operations or of meeting capital requirements or fulfilling any other provisions of these guidelines.