Central Bank of Kenya has upheld its decision to fine five banks Ksh392.5 million in connection to loss of about Ksh4 billion by National Youth Service.
KCB Group, Equity, Standard Chartered Bank, Co-operative Bank and Diamond Trust Bank were directed to pay Ksh149.5 million, Ksh89.5 million, Ksh77.5 million, Ksh20 million and Ksh56 million respectively in September for failing to adhere to anti-money laundering and countering of financial terrorism frameworks.
The five banks, it said in a statement, did not give sufficient response to alter the results of the investigations on their conduct and failed to give justification on why their respective fines should be reviewed.
“Consequently, CBK has levied the penalties as assessed,” it said.
The regulator has welcomed action plans by the banks on how they will strengthen their AML/ CFT frameworks and will monitor their commitment to implement them.
“The actions taken by CBK are aimed at safeguarding stakeholder’s interests and maintaining a healthy financial sector,” said the regulator.