The central bank of Kenya has released a list of Banks involved in the NYS scandal and the amounts they handled.
In a statement sent to news rooms, CBK said it has been investigating a series of banks suspected to be involved with persons transacting illegally with the National Youth Service.
This comes after concerns that were raised in May 2018 involving illegal transaction of NYS funds.
CBK said the investigations prioritized banks that handled the largest cash flows.
The banks listed in the CBK report include Standard Charted, Equity Bank, Kenya Commercial Bank (KCB) Co-operative Bank and Diamond Trust Bank.
In the statement, CBK identified violations based failure to report large transactions, failure to undertake adequate customer due diligence, lack of supporting documentation for large transactions and lapses in reporting suspicious transactions.
CBK has also issued monetary penaltis to the banks listed based on the monetary value they received based on the Bankina Act and the Central Bank of Kenya Act.
Following the violations, Standard charted which received Ksh.1,628 Million has been penalises Ksh.77.5, Equity Bank received Ksh.886 million and will be penalised 89.5 Million, KCB received Ksh.639 million and will be penalised Ksh.149.5 million Co-operative bank received Ksh.263 Million and will be penalised 20.0 million while Diamond Trust Bank which received Ksh.162 million will be penalised 56.0 Million.
CBK said it has shared the findings with the said banks as well as the rel;evant authorities.
“CBK has discussed the detailed findings with Boards of Directors and Senior Management of each of the banks. Each has expressed their strong commitment to be fully compliant on all aspects of the law, and addressing the identified lapses through time-bound Action Plans,” read part of the statement