CBK rules out review of order compelling declaration on Sh1m cash transactions

The Central Bank of Kenya (CBK) has maintained there will be no review of the new guideline requiring customers making cash transactions exceeding Sh1 million to complete an “over the counter large transaction form”.

Businesspeople and a number of banks have complained over inconvenience created by the new rules which compel customers to spend longer periods in the banking halls.

The guidelines aimed at taming money laundering require banks to, among other things, obtain from customers details of why the cash deposit or withdrawal is being made and the intended beneficiary or use.

READ: Bank clients to say who receives the cash if they withdraw over Sh1m

Governor Patrick Njoroge Thursday told Parliament that the rules would remain in place, having been designed after considering what is done in other jurisdictions. “It is up to the banks to innovate and come up with ways that are customer-friendly to serve them fast and efficiently,” he said.

Dr Njoroge was responding to questions by Senate Committee on Finance, Commerce and Economic Affairs chaired by Mandera Senator Billow Kerrow.

Nyeri Senator Mutahi Kagwe said it did not make sense for a customer to spend half a day at a bank just to withdraw Sh2 million.

“This is inconveniencing business people with some resorting to keeping their money at home and in my opinion there is a need to review the rules,” he said.
Under the new guidelines issued in January, customers are also required to disclose the source of the money.

In recent times, numerous corruption cases have been unearthed involving billions of shillings. Corporate executives have also been named in tender scandals in the companies they head. The executives are believed to use banks to clean money linked to corruption.