This archive report was first published on 16 September 2019.
As the deadline for exchanging old KSh 1000 notes draws near, the Central Bank of Kenya (CBK) has issued a stern warning to lenders against any attempt to circumvent Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) requirements.
On September 13, 2019, the CBK reminded lenders of their AML/CFT obligations under the Central Bank of Kenya Prudential Guidelines and the Proceeds of Crime and Anti-Money Laundering Act, 2019 (POCAMLA).
"In the regard, the banks are advised to remain vigilant and undertake enhanced due diligence measures on customers' transactions and ensure effective monitoring of all accounts and transactions," the letter read.
The regulator further warned that action will be taken against any financial institution found flaunting the rules and guidelines as stipulated under POCAMLA.
"The CBK shall take appropriate enforcement action against any commercial bank that fails, neglects or omits to comply with relevant AML/CFT laws and regulations," the letter read.
Additionally, the CBK had earlier reminded employers and the general public that the old KSh 1000 note will not be in use after September 30, 2019.
As of June 1, 2019, the new generation currency has been in circulation, and all Kenyans have until the end of September 2019 to exchange the old notes.
