This archive report was first published on 24 September 2019.
On September 24, 2019, the Bank of Tanzania (BoT) imposed a collective fine of $800,000 on five Kenyan commercial banks for violating anti-money laundering regulations.
The banks in question are I&M Bank, Equity Bank, UBL Bank, Habib African Bank, and African Banking Corporation. I&M Bank received the largest fine, totaling KSH 29.5 million, followed by Equity Bank with a fine of KSH 26.2 million, UBL Bank with KSH 14.6 million, Habib African Bank with KSH 7.9 million, and African Banking Corporation with KSH 6.5 million.
The BoT found that the five banks failed to conduct proper customer due diligence and file suspicious transaction reports to the Finance Intelligence Unit as required.
As a result, the BoT has ordered the banks to implement corrective measures within 90 days. These measures include reviewing their Know Your Customer (KYC) compliance status, ensuring proper documentation is in place, and reporting suspicious transactions to the Finance Intelligence Unit.
The banks have also been instructed to assess the adequacy of their internal controls, take necessary steps to strengthen these controls, and take disciplinary action against staff involved in opening deposit accounts that contravened KYC requirements.
