The Central Bank of Kenya (CBK) has maintained silence on whether commercial banks involved in the multi-billion scandal at the National Youth Service flagged and reported any suspicious transactions.
The regulator failed to respond to repeated Business Daily questions on whether the lenders met their obligations in reporting suspect cash transactions.
The law requires all financial institutions including banks, insurance companies and Saccos to file to the Financial Reporting Centre (FRC) daily reports on transactions above Sh1 million and those deemed suspect. Yesterday, the Director of Public Prosecutions (DPP) Noordin Haji said he will examine the alleged role of banks in facilitating a Sh8 billion suspected corruption scam involving the NYS and companies.
Mr Haji told a news conference that he had charged 40 civil servants and 14 private sector officials in what he called the first stage of an ongoing corruption probe.
“In phase 2 of the investigations, the DCI will focus on additional areas including companies/entities that benenefited from the fraudulent payments and banks that were complicit to the offences,” he said.
“We are investigating this as banks are supposed to report suspicious transactions.”
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