Ecobank Kenya Suspended from Forex Trading Until April 4, 2022

The Central Bank of Kenya (CBK) has sanctioned Ecobank Kenya Limited over an irregular foreign exchange trade.

The Central Bank of Kenya (CBK) has temporarily barred Ecobank Kenya Limited from foreign exchange trade over unsafe trading practices and breach to  forex guidelines.

The lender will halt forex trade for a week until April 4, 2022, and will not be allowed to transact in the interbank foreign exchange market.

CBK says the lender had concluded a forex transaction contrary to the Prudential Guidelines on Foreign Exchange Exposure Limits.

“In investigating Ecobank’s trading practices and a specific transaction that it had concluded, it is evident that Ecobank did not have sufficiently robust risk controls to prevent breaches on its foreign exchange exposure limits, or the inaccurate reporting of its position,” said CBK in a statement released Monday.

Ecobank is now required to put in place measures to prevent a recurrence.

“The remedial plan should also point to specific measures to address the unsafe trading practices that led to the non-compliance and to enforce adherence to orderly conduct as stipulated in CBK’s Guidelines on Foreign Exchange,” said CBK.

What is a ‘Source of Funds’ check and how does it affect you?

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IK is a Masinde Muliro University graduate. His interests are in news and analysis on women's rights, politics, technology, law, and global affairs.

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