This archive report was first published on 23 September 2019.
As the September 30th deadline for exchanging old Sh1,000 notes approaches, the Central Bank of Kenya (CBK) is intensifying its efforts to prevent illicit cash laundering.
According to the CBK, approximately Sh100 billion of the old Sh1,000 bill remains in the hands of private individuals, sparking concerns that part of the cash may be ill-gotten and could be returned into the system in the coming days.
The CBK has been scrutinizing 800 personal bank accounts over the last three months, following huge transactions that have sparked formal investigations.
"At this point in time, the level of vigilance is extremely high. Banks have been reminded to report any suspicious financial activity using know-your-customer rules," the CBK stated.
Kenya Bankers Association (KBA) CEO Habil Olaka echoed the CBK's sentiments, advising banks to scrutinize every person who comes to exchange notes or makes unusually high deposits.
Authorities are also monitoring transactions that require huge amounts of money, such as buying vehicles, land, and investment in shares.
CBK Governor Dr. Patrick Njoroge has reiterated that the deadline for the withdrawal of the old notes will not be extended, emphasizing that people must dispose of their old Sh1,000 banknotes by September 30.
