NAIROBI, Kenya, Jun 5 – The Kenya Bankers Association (KBA) has issued an alert against attempts by unscrupulous individual to launder illicit funds through the banking system in the exercise to replace the old generation notes.
Through a statement in the local dailies, the association encouraged “banks, bank agents and retailers, as well as citizens in general, to be especially vigilant during the transition period.”
“There may be attempts to launder illicit funds through the banking system during the exercise of replacing the old generation notes with the newly released ones,” it stated.
The organisation pointed out that banks have also put in place mechanisms to receive the old notes and provide their customers with the new currency notes.
The process will include the reconfiguration of ATM machines and currency counters.
There are approximately 1,700 ATM machines, 780 bank branches and 66 agents countrywide.
According to the association, banks have and continue to undertake due diligence processes seriously and report suspicious transactions to the Financial Reporting Centre as required.
The Central Bank of Kenya (CBK) unveiled the new generation banknotes last Saturday with Governor Patrick Njoroge stating that the old Sh1,000 notes will be withdrawn effective October 1 as part of measures to curb money laundering.