This archive report was first published on 20 June 2020.
On June 18, 2020, the Central Bank of Kenya (CBK) took regulatory action against Absa Bank Kenya, formerly Barclays Kenya, for failing to ensure standard checks on some foreign exchange transactions in March 2020.
The CBK found that Absa Kenya did not have satisfactory assurance of the underlying commercial transactions supporting these trades, nor did the bank ensure the standard checks on anti-money laundering and combating the financing of terrorism (AML/CFT) and know-your-customer (KYC) requirements were applied.
As a result, the CBK imposed several sanctions on Absa Kenya, including a one-week suspension as an authorized foreign exchange dealer, effective from April 9, 2020, to April 15, 2020.
During this period, Absa Kenya cannot transact in the interbank foreign exchange market, but all committed transactions as of April 8, 2020, can be settled.
The CBK also ordered the bank to reverse the market positions created as a result of the flagged transactions and to undertake several corrective measures, including putting in place a robust framework to ensure all relevant documents for such forex transactions are available as required.
CBK reiterates its objective of building sound, fair, and transparent financial markets, anchored in the law and according to global best practices.
