CBK to go ahead in penalising five banks in NYS fraud

The Central Bank of Kenya (CBK) will go ahead and penalise Standard Chartered Kenya, Equity, Diamond Trust, Co-operative Bank and KCB Group for failing to report suspicious transactions in connection with the theft of funds at the National Youth Service (NYS).
Read: CBK Fines 5 Kenya Banks for transacting illegally with the National Youth Service
“CBK has reviewed each bank’s response to the penalty assessment and has concluded that the submissions were not sufficient to alter the findings of the investigations and the penalties assessed. Consequently, CBK has levied the penalties as assessed.” the regulator said on Friday in a statement.
The penalties total Ksh 392.5 million – KCB (KSh149.5 million), Standard Chartered Bank (KSh77.5 million), Equity Bank (KSh89.5 million), Cooperative Bank (KSh20 million), and DTB (KSh56 million) authorised from the Integrated Financial Management Information System (IFMIS) to companies involved.
“CBK assessed monetary penalties for each of the five banks in accordance with the extent of the violations that were identified and pursuant to CBK’s powers under the Banking Act and the Central Bank of Kenya Act,” read part of the statement.
The actions taken are aimed at safeguarding stakeholders interests and maintaining a healthy financial sector the regulator said.

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