Banks and top officials under fire as new files are opened in NYS II Scandal

The Director of Public Prosecution Noordin Haji has formed team to review files after DCI recommended charges against 5 local banks and officials who aided, reaped from Sh8bn in NYS II scandal.

The law requires all financial institutions including banks, insurance companies and Saccos to file with the Financial Reporting Centre (FRC) daily reports on transactions above Sh1 million and those deemed suspect.

Bank executives and persons who are convicted for handling illicit cash face a Sh1 million fine and a three-year jail term, while institutions including banks, credit unions facilitating such deals could be fined up to Sh20 million upon conviction. Banks could also lose their licences.

CBK earlier Wednesday said the findings of its investigations had been passed onto investigators to assess whether they would bring any charges.

Those penalised are KCB Group (Sh149.5 million), Equity Bank (Sh89.5 million), Standard Chartered Bank-Kenya (ShSh77.5 million), Diamond Trust Bank (Sh56 million) and Co-operative Bank of Kenya (Sh20 million).

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β€œThe second phase of the investigations will involve use of these findings by other investigators, inter alia, assessment of criminal culpability by the Directorate of Criminal Investigations (DCI) and the Office of the Director of Public Prosecutions (ODPP),” CBK said in its statement. The CBK also said more banks would be investigated.

 

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