Browsing: Abu Dhabi Islamic Bank (ADIB)

Banks in Kenya rush to counter money laundering cases

Commercial banks in Kenya have been on the limelight with accusations of abetting money laundering and being involved in national corruption scandals. Such was the case several banks which in 2018, CBK accused them of participating in payments for the National Youth Services (NYS) scandal.,

In this case, the director of public prosecution announced that he was considering prosecuting 20 senior officials in five banks, which they believe aided the laundering of at least Ksh1 billion ($10 million) looted from the National Youth Service (NYS) between January 2016 and April 2018.

These commercial banks have however developed mechanisms to conform to anti-money laundering laws developed in Kenya.

The law requires all financial institutions including banks, insurance companies, and SACCOs to file with the Financial Reporting Centre daily reports on transactions above Sh1 million and those deemed suspect. This is under the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA).