– CBK recently unveiled new bank notes and said the KSh 1,000 note will cease to be legal tender from October
– Kenyan shave until October 1 to exchange the old KSh 1,000 notes for the new ones
– Those exchanging the notes will be required to provide information about the transactions and source of money
– The reports will be filed and submitted to Central Bank of Kenya on weekly basis
The Central Bank of Kenya has instructed commercial banks to file weekly reports on persons exchanging old currency notes in a bid to curb circulation of illicit money in the economy.
The weekly reports will be submitted to CBK at the beginning of the following week by 9am.
In a report by the Business Daily, the financial institutions will be required to obtain identification documents of every person involved in the transaction and establish the source and purpose of the funds.
“Commercial banks shall submit to the CBK periodic weekly reports in the returns attached to the banking circular. These returns should reach the CBK by 9am of first working days of the following week,” read a circular dated Monday, June 10.
Further the CBK shall take appropriate enforcement action against any commercial bank which fails, neglects or omits to comply with anti-money laundering laws including submission of returns on time.
The regulations come barely two days after Bank of Tanzania and Uganda stopped the use of the Kenyan currency in an effort to curb its banks from being used to launder stolen money back into Kenya.
The Bank of Uganda said the move was necessitated after the CBK informed it that it had issued a new series of banknotes effective May 31.
The money regulator also suspended conversion and repatriation of the Kenyan currency and anyone who needs to exchange money between KSh 1 million and KSh 5 million will be required to exchange the money at their banks.
Those who do not have bank accounts will need to contact the CBK to endorse the exchange.
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