Large Cash Transactions to Attract Scrutiny

The Central Bank of Kenya (CBK) has issued new guidelines for mandatory information that Kenyans will be required to provide when handling large cash banking transactions, equal to or exceeding USD 10,000 or its equivalent in Kenya Shillings or any other currency.

These guidelines take effect immediately and customers of various banks in Kenya will be required to fill a declaration form to provide the following details:

  • Why is the large cash deposit or withdrawal necessary?
  • Why can’t the cash deposit or withdrawal be made through electronic means?
  • Where will the money be taken after it leaves the bank premises?
  • What is the money going to be used for?
  • Who will be the direct and indirect beneficiaries of the money?
  • What is the full identity of the intended beneficiaries of the money?
  • What is the source of the money being deposited or withdrawn over the counter?

According to CBK, the new regulations are designed to encourage the use of electronic payments and reduce the inherent risks involved with cash transactions. Electronic payments are beneficial to customers as they reduce losses due to fraud and theft.

To stay on the safe side of the regulations, banks in Kenya are offering alternate payment solutions such as

  • Electronic Funds Transfers (EFTs)
  • Real Time Gross Settlements (RTGS)
  • Mobile payments
  • Online Banking
  • Cross border funds transfers i.e. SWIFT
  • Cheques (both Bankers and Personal cheques)
Blake.co.ke
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