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.”
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 suspected to be ‘Wash Wash’ scum by outsiders with the help of the bank
staff.
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 
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