Banking Circular No 5 of 2014 - Implementation of the UN Security Council Resolutions on Central African Republic

CENTRAL
BANKI
KUU YA
BANK OF
KENYA
KENYA
1st September, 2014 Haile Selassie Avenue P.O. Box 60000-00200 Nairobi, Kenya Telephone: 2860000, Fax: 340192 BANKING CIRCULAR NO.5 OF 2014 EXECUTIVES OF COMMERCIAL BANKS, MORTGAGE TO CHIEF FINANCE COMPANIES AND MICROFINANCE BANKS IMPLEMENTATION OF THE UN SECURITY COUNCIL RESOLUTIONS ON CENTRAL AFRICAN REPUBLIC

Background

e The Banking Circular No. 2 of 2014 issued by the Central Bank on 1st April 2014 refers.

As you are aware, the United Nations (UN) Security Council had issued Resolutions imposing sanctions against individuals and entities involved in the insecurity situation in the Central African Republic (CAR) and had called upon the international community to enforce the sanctions.

The UN Security Council Committee established pursuant to Resolution 2127 (2013) concerning the Central African Republic on 9th May 2014, approved the inclusion of Francois Yangouvonda Bozize former president of the CAR, Levy Yakite and Nourredine Adam on the list of individuals subject to measures imposed by paragraphs 30 (travel sanctions) and 32 (financial sanctions) of Resolutions 2134 (2014).

You are also aware that commercial banks, mortgage finance companies and microfinance banks are directly affected by paragraph 32 of Resolution 2134 of 2014 adopted on 28th January 2014 which provides that:
"The Security Council ·
32. Decides that all Member States shall, for an initial period of one year from the date of the adoption of the resolution, freeze without delay all funds, other financial assets and economic resources which are on their territories, which are owned or controlled directly or indirectly, by the individuals or entities designated by the Committee established pursuant to paragraph 57 of resolution 2127, or by individuals or entities acting on their behalf or at their direction, or by entities owned or controlled by them, and decides further that all Member States shall ensure that any funds, financial assets or economic resources are prevented from being made available by their nationals or by any individuals or entities within their territories, to or for the benefit of the individuals or entities designated by the committee".

This Circular is issued with the purpose of:
i) ii) iii)
Apprising institutions on the UN Security Council Resolution No. 2127 (2013) on Central African Republic with regard to the sanctioned individuals, namely; Francois Yangouvonda Bozize former president of the CAR, Levy Yakite and Nourredine Adam.

Requiring institutions to take appropriate measures in line with requirements of Regulation 27(3) of the Proceeds of Crime and Anti-Money Laundering Regulations, 2013.

Requiring institutions to confirm if any of the sanctioned individuals have a business relationship with them by 15th September, 2014.

In the event of any query or clarification, please contact:
The Director, Bank Supervision Department Central Bank of Kenya P. O. Box 60000 - 00200 Nairobi Tel: 2863005 Email: fin@centralbank.go.ke Nati MATU MUGO ASSISTANT DIRECTOR, BANK SUPERVISION Chief Executive Officer Kenya Bankers Association 13th Floor, International Life House Mama Ngina Street NAIROBI Cc:
Chief Executive Officer Association of Microfinance Institutions Methodist Ministries Centre NAIROBI