Regulatory Alerts2016-01-05
Banking Circular No 1 of 2016 - Additional Guidelines on Large Cash Transactions
The Central Bank of Kenya (CBK) has released additional guidelines on handling large cash transactions, emphasizing the requirement to obtain written statements from customers for such deposits or withdrawals. These new guidelines apply to all financial institutions in the country and aim at reducing the risk of money laundering and terrorism financing by increasing transparency in large cash transactions. Institutions are now required to gather additional information when handling these transactions, including the purpose of the money, the identity of beneficiaries, and the source of the funds. If a customer cannot provide this information or if the provided facts do not justify the transaction, the institution must report it to the Financial Reporting Centre. Failure to comply with these requirements may result in termination of the banking relationship and further penalties for providing false information.