Equity Bank CEO James Mwangi has raised concerns about the Central Bank of Kenya's 2016 regulations mandating detailed disclosure for cash transactions exceeding Ksh 1 million, arguing that financial institutions lack the capacity to implement the policy effectively.
In a statement to Citizen TV, Mwangi described the requirement for banks to collect extensive documentation on large cash transfers as an impractical approach to supporting business operations. "The investigative measures imposed on banks, including documentation demands for all high-value transactions, are not feasible," he said.
The CBK guidelines, issued in 2016, stipulate that customers initiating transactions above Sh 1 million must complete a form detailing the money's origin, intended recipient, and transaction purpose. The central bank asserts the policy aims to curb illicit activities by addressing the risks associated with anonymous cash flows.
"While most cash transactions are legitimate, large-scale transfers characterized by informality and lack of transparency pose risks of money laundering and terrorism financing," the CBK circular noted.
