Five Kenyan Banks Slapped with Sh394 Million Fine for Transacting Stolen NYS Money
Five Kenyan banks have been handed hefty fines after they were found guilty of irregularly transacting millions of shilling in the second phase of the National Youth Service (NYS) scam.
A probe by the Central Bank of Kenya (CBK) established that the five lenders were used to move illegally acquired funds by NYS looters.
The five banks which include Kenya Commercial Bank (KCB), Equity Bank, Standard Chartered Bank, Diamond Trust and Cooperative Bank of Kenya (CBK) were slapped with a combined fine of Sh394 million.
KCB will pay the highest fine of Sh149.5 million, followed by Equity Bank (Sh89.5 million) while Standard Chartered Bank will pay a monetary penalty of Sh77.5 million.
Diamond Trust Bank and Co-operative Bank of Kenya will part ways with Sh56 million and Sh20 million respectively.
CBK said more than 3.6 billion was wired through the five banking institutions with the highest flow (Sh1.6 billion) having been transacted via Standard Chartered Bank.
Equity bank and KCB handled Sh886 million and Sh639 million of the loot respectively while Diamond Trust Bank facilitated Sh162 million.
“CBK has discussed the detailed findings with Boards of Directors and Senior Management of each of the banks. Each has expressed their strong commitment to be fully compliant on all aspects of the law, and addressing the identified lapses through time-bound Action Plans,” reads the statement from CBK.
“The main objective of the investigations was to examine the operations of the NYS-related bank accounts and transactions, and in each instance assess the bank’s compliance with the requirements of Kenya’s Anti-Money Laundering/Combating Financing of Terrorism (AML/CFT) laws and regulations,” said CBK.
The Central Bank said more banks that handled the stolen funds from the NYS scandal will be identified as further investigations continue.
“The second phase of the investigations will involve use of these findings by other investigators, inter alia, assessment of criminal culpability by the Directorate of Criminal Investigations (DCI) and the Office of the Director of Public Prosecution (ODPP).
“CBK has shared the findings with the relevant investigative agencies for their appropriate action. Further, an additional set of banks will also be identified and investigated,” reads the statement by CBK.
Comments
Mohandas Karamchand Gandhi…
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Mohandas Karamchand Gandhi wa India alisema, "... Earth provides enough to satisfy every man's needs, but not every man's greed."
Utawala wa Ndugu Uhuru na Ndugu Ruto umefanya wachache kushiba sana na huku mamilioni ya wananchi wanakufa kwa njaa.
Hebu tazama nyumba Uhuru na Ruto walizojenga zao binafsi halafu ulinganishe na maisha ya watu wanaoishi huko Kibera! Jamnei! Tamaa hii itakwisha lini?
This is why I got Curious…
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In reply to Mohandas Karamchand Gandhi… by Imara Halisi (not verified)
This is why I got Curious about Equity Bank's CEO James Mwangi advocating for the 16% VAT Tax Levy. I saw a CORRUPT person in him and Equity Bank.
Someone educate us more…
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Someone educate us more.....how is the fine calculated? From the look of things, the amount of loot transacted doesn't matter....
Why are the BODs of these banks not being investigated? I can bet my last coin...they definitely knew...read: they ate!
Another scum. That fine is…
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Another scum. That fine is heading straight to the pockets of....you know who.
@ James Wriggle, you are…
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In reply to Another scum. That fine is… by James wriggle (not verified)
@ James Wriggle, you are right .That fine will end in pockets of bank officials.And if things get tough,all they will do is pass the fine to customers in form of various charges,just bump up these charges and claim that cost of doing business has gone up.Bottom line, mwananchi is the one who bear the brunt one way or the other.Too bad.When will this bleeding stop...
@ James Wriggle, you are…
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In reply to Another scum. That fine is… by James wriggle (not verified)
@ James Wriggle, you are right .That fine will end in pockets of bank officials.And if things get tough,all they will do is pass the fine to customers in form of various charges,just bump up these charges and claim that cost of doing business has gone up.Bottom line, mwananchi is the one who bear the brunt one way or the other.Too bad.When will this bleeding stop...
I have come to a conclusion…
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I have come to a conclusion all this money NYS1 &2, Eurobond 1 & 2 , Goldenberg scandal, Afya house stolen funds among all this stolen public funds.
This is the money financing Al shabab , terrorism and criminal organizations in Kenya.
That is my conclusion.Therefore, all these bank managers should be charged with aiding and abetting terrorists and criminals.
I have come to a conclusion…
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I have come to a conclusion all this money NYS1 &2, Eurobond 1 & 2 , Goldenberg scandal, Afya house stolen funds among all this stolen public funds.
This is the money financing Al shabab , terrorism and criminal organizations in Kenya.
That is my conclusion.Therefore, all these bank managers should be charged with aiding and abetting terrorists and criminals.
Going after banks won't help…
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Going after banks won't help. The banks will pay and then pass the cost to its customers. Let us see people going to jail. Otherwise, corruption remains a joke in Kenya. Since we started charging people with crimes, having them pay the bond, having them released, no one has gone to jail. It looks like all that drama is only for publicity. God give Kenya leaders not politicians. God help Kenya!!
@Diana ur out of order.I…
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@Diana ur out of order.I thot Diaspora r happy Uhuruto is fighting corruption.This is a good step?As I always say this Diasporas eat negative sleep negatives about its country.When something good happens let’s kogratulats otherwise it’s good sometimes to shallap or zip it.
Bure kabisa
Is Taj Mall demolished?…
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In reply to @Diana ur out of order.I… by Mkenya halisi (not verified)
Is Taj Mall demolished?
People should not be building on road reserves.Even such clear violations of the law like building on road reserve is equivalent telling this jubilee government to go to the moon.
Who is funding terrorists and criminal organizations in Kenya?
Obviously it’s all this unaccounted for stolen public funds.
What a country!!!! Those…
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What a country!!!! Those fines are literally peanuts to these banks. They should have fined huge amounts of money to deter future criminal activities. The top bank officials should have been sanctioned as well otherwise this will be just the cost of doing business. Poor Kenyans. The fleecing continues as usual. Corrupted to the core.
@Diana who funded Syria war…
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@Diana who funded Syria war n Iraq war???Coz whoever funded them r terrorists.Give me the a fair answer if u follow world politics.
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