Kenyans Withdrawing, Depositing Huge Amounts of Cash Slapped with Tougher Rules

The Kenya Bankers Association (KBA) has issued new and tougher rules on withdrawals of huge amounts of cash from banks.

In the new directives, customers withdrawing more than Sh10 million will have to give a three-day notice to the bank branch manager before the transaction. Those withdrawing such amounts will also be required to explain why they are withdrawing.

The rules will also apply to customers depositing more than Sh10 million, with one being required to produce evidence of the source of the funds being deposited. Those transacting must produce their identification cards and those of beneficiaries.

On Monday, the Kenya Bankers Association explained that the move is aimed at sealing loopholes for money laundering and financing of terror.

“For cash transactions above Sh10 million, the branch manager should request the customer to give a three-day written notice giving source of funds (with supporting evidence) for deposits and for what purpose the funds are being used for,” KBA chief executive Habil Olaka said.

In 2015, some banks and employees were found to have been involved in laundering part of the Sh791 million stolen from the National Youth Service (NYS).