The Central Bank of Kenya has taken regulatory action against Absa Bank Kenya for failing to provide information about some foreign exchange transactions conducted in March 2020. CBK says that the lender did not have satisfactory assurance of the source of funds used in the forex transactions.
In the notice to the public, CBK added, “…the bank [did not] ensure the standard checks on anti-money laundering and combating the financing of terrorism (AML/CFT) and know-your-customer (KYC) requirements were applied.”
Kenyan Banks are required by law to have safeguards against money-laundering and other illicit financial transactions. Any suspicious transactions involving large sums of money must be reported to the Central Bank.
The Central Bank has temporarily stopped Absa Bank from acting as an authorized foreign exchange dealer from Thursday 9th April to Wednesday 15th April. Additionally, the regulator has asked Absa Bank to put in measures that will ensure all necessary documents are provided during foreign exchange transactions and that Anti-money laundering and combating the financing of terrorism rules are adhered to.
