Equity Bank CEO James Mwangi has criticized Central Bank of Kenya regulations mandating banks to monitor cash transactions exceeding Sh1 million, claiming the requirements impose undue burdens on financial institutions.
In an interview, Mwangi stated that the CBK's directive for banks to collect detailed documentation on large cash transfers conflicts with operational realities. He argued that the regulation's investigative approach would impede business activities rather than support them.
The Central Bank's 2016 guidelines require customers conducting transactions above Sh1 million to complete a form detailing the money's origin, recipient, and purpose. CBK officials assert the policy aims to prevent money laundering and terrorism financing by curbing anonymous cash transactions.
A CBK circular emphasized that while most cash transactions are legitimate, large-scale transfers often involve informal practices that create vulnerabilities for financial institutions. The regulator maintains the measures are necessary to strengthen oversight of high-risk transactions.
