Prosecution reviews five banks over KSh9m NYS II scandal

Kenya’s Director of Public Prosecutions (DPP) has formed a  team to review files after DCI recommended charges against 5 local banks and officials who benefitted from KSh8bn in NYS II scandal.

“I have constituted a team of senior prosecutors to independently review the respective investigation files and make recommendations within 14 days,” said Noordin Haji, Directo of Public Prosecutions.

The banks in question include Standard Charted Bank, Kenya Commercial Bank, Equity Bank, Diamond Trust Bank, and Cooperative Bank  with “Regard to suspected violation of legislation that govern banks and provisions of the proceeds of Crime and Anti-money Laundering Act no,9 of 2019.”

According to the ODDP, “With recommendations that charges should be preferred against the banks, bank officials, individuals, and entities for concealing and facilitating, aiding, abetting and benefiting from proceeds of crimes as follows:

Standard Charted Bank received Ksh 1,628,902,000 between January 2016 and April 2018 out of which Ksh 588,588,000 was suspiciouslyJanuarycted by bank officials and no report made.

Kenya Commercial Bank received Ksh 800 million out of which 148, 397,00 was transacted by bank officials.

Equity Bank received Ksh 886,426,904 out of which Ksh 264, 200,000 and USD 58,000 was suspiciously transacted in violation of the law.

Diamond Trust Bank received Ksh 164 million and Ksh 27,946,298 was suspiciously transacted

Cooperative Bank of Kenya received Ksh 250 million and investigations revealed that Ksh 25 million was suspiciously transacted.

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“The Central Bank of Kenya undertook targeted inspection of the five banks, which resulted in penalties and strict supervision regime to mitigate and address the identified gaps and other measures. I have constituted a team of special prosecutors to independently review the respective files and make recommendations within 14 days,” Haji said in a statement.

Read: CBK Fines 5 Kenya Banks for transacting illegally with the National Youth Service