Banks which handled National Youth Service (NYS) loot will have to part with Ksh392.5 million in fines, the Central Bank of Kenya (CBK) has said.
Among the banks affected by the move include Standard Chartered Bank, Equity Bank, KCB Bank, Co-operative Bank and Diamond Trust Bank Kenya.
In a statement, CBK says the move is set to streamline the banking sector in Kenya, in relation to handling stolen money.
“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,” read the statement from CBK.
KCB will pay Ksh149.5 million for having handled Ksh639 million of the NYS cash, being 17.8 per cent of the ksh3.57 billion illicit cash handled by the five banks.
Equity will pay ksh89.5 million for having handled ksh886 million while Standard Chartered will pay Ksh77.5 million on account of having handled Ksh1.63 billion.
Cooperative Bank was fined Ksh20 million and while DTB will part with Ksh56 million.
CBK, however, says it is satisfied by the action plans that the five banks have submitted, promising to address the lapses that led to handling of illicit money.
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