This archive report was first published on 20 September 2019.
As the deadline for exchanging old Sh1,000 notes draws near, the Central Bank of Kenya (CBK) has put banks on high alert over potential money laundering cases.
With just 10 days left before the old Sh1,000 note becomes obsolete on September 30, 2019, the CBK has identified 800 bank accounts that may be used to launder illicit money.
According to the CBK, the identified accounts have been flagged for scrutiny, and banks have been reminded to report any suspicious financial activity using know-your-customer rules.
CBK Director of Bank Supervision Gerald Nyaoma wrote to banks, reminding them of their Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) obligations under the Central Bank of Kenya Prudential Guidelines and the Proceeds of Crime and Anti-Money Laundering Act, 2009.
Director of Public Prosecutions Noordin Haji has also directed law enforcement agencies to preserve old Sh1,000 notes being held as exhibits in cases to enable the courts to make appropriate orders that will facilitate demonetisation.
CBK Head of Communications Wallace Kantai noted that the level of success of demonetisation will only be known after the September 30 deadline.
