Banks are rushing to implement a directive by the industry lobby, the Kenya Bankers Association (KBA), on bulk cash transactions.
The lenders have written customers urging them to adhere to the anti-money laundering directive in which those planning to withdraw or deposit Sh10 million and above in cash are required to give a three-day notice and get clearance from branch managers.
“In compliance with recent guidelines published by the Kenya Bankers Association, we would like to notify you that all cash transactions above Sh10 million will now be subject to a three-day notice requirement,” said Commercial Bank of Africa (CBA) in a notice to customers.
“To this end, with immediate effect, kindly note to submit a notice to the branch that you will be withdrawing or depositing the funds from, three days prior to your transaction date.”
The lender said any such notice should include details as the purpose for the funds and the reason why funds cannot be transmitted through Real Time Gross Payment System — the recommended channel for transfer of more than Sh1 million.
The ID and passport copies of person making the transaction as well as those of all payee and beneficiaries must also be provided.
“Please also note that for cash deposits above Sh10 million we will require information on the source of funds (with supporting documentation),” said CBA.
The new tough rules announced in June aim to seal loopholes for money laundering and financing of terror.
“My worry about this bank directive is that it is diverting attention from bankers’ mistakes,” said Maarubu Munyaka a banking analyst.
“Instead of punishing any of their officers who collude with crooked government officials and suppliers they are trying to punish innocent banks customers the punitive decision,” he said.