Anti-graft heat turns on banks
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the kenyan people demand that from all of us and will take us very unkindly if we look the other way dr njoroge said1 in a renewed battle against corruption the central bank of kenya cbk has issued a stern warning that it would sanction any banks handling proceeds of graft1 he was addressing bankers at the 7th annual research conference organised by the kenya bankers association kba in nairobi1 dr njoroge said cbk is ready to crack the whip again on any rogue bank which helps ship out money from public institutions illegally obtained from graft1 two weeks ago we took action against some of your institutions because of non-compliance with integrity laws. make no mistake warned dr njoroge1 we will not hesitate to do it again under similar circumstances. banks must steer away from being used as conduits for ill-gotten funds he added1 he said bank chiefs owe a duty of care to the public not to abet or aid graft in public institutions1 the central bank of kenya cbk governor patrick njoroge said on thursday that the banks will face stiff sanctions1 nearly a fortnight ago the cbk fined five banks 3.1 million for their role in aiding the movement of the stolen funds1 the penalised banks were kcb group the regions largest bank by assets which was slapped with a 1.49 million fine equity bank 895000 standard chartered bank-kenya 775000 diamond trust bank 560000 and co-operative bank of kenya 2000001 the office of the director of public prosecutions said it was also preparing charges against bank executives for their alleged role in helping ship out more than 30 million of money stolen from kenyas national youth service nys two years ago1 the law requires all financial institutions to file daily reports with the financial reporting centre on transactions above 10000 and those deemed suspect. cbk accused the five banks of failing to comply with the requirements of kenyas anti-money launderingcombating financing of terrorism laws and regulations1 an individual found guilty of contravening the crime and anti-money laundering act faces a prison term not exceeding 14 years or a fine of ksh5 million 500001 source east african1 httpwww.theeastafrican.co.kebusinesskenya-banks-face-stiff-sanctions-if-found-aiding-graft2560-4780388-iwwkgkzindex.html1