Parliament faults Central Bank of Kenya Gorvenor over big cash deposits

Central Bank of Kenya governor, Patrick Njoroge yesterday came under fire as MPs ousted his ‘tough’ regulations requiring declarations for transactions of over Ksh.1 million.

Last year, the CBK boss issued a circular to commercial banks requiring customers transacting – depositing or withdrawing – more than Ksh.1 million to fill special forms indicating where the money is from or is going.

Bank customers are also required to indicate who they are paying or receiving the money from and the purpose the money would serve.

But the agitated legislators criticised Njoroge saying the regulations and the circular are illegal and irregular. They said the regulations have never been tabled and approved by the House as required by law.

CBK held that the guidelines are in line with the Proceeds of Crime and Anti-money Laundering Regulations, 2013.

“What the governor is doing is not good for the economy. The finance committee should tell us why the CBK boss is not appearing before us,” Majority Leader Aden Duale said.

Suna East Mp Junet Mohammed said: “What the CBK governor is doing unacceptable and illegal. The circular warning financial entities is contrary to the law.” The Finance Committee indicted Njoroge for constantly ignoring the invitations by the panel to clear the air on the circular.

They said the circular has hurt the economy as Kenyans and investors have been hindered from freely making transactions in banks.

Junet decried that the “CBK governor has turned banks into documentation bureaus or police stations by asking for birth certificates for relatives.”

“We are not supporting illicit trade, terrorism, money laundering but when genuine traders are being harassed, then we cannot keep quiet.”

He argued at the floor of the House that the ‘CBK governor is not above the law’ adding that the said circulars are strangling the economy.

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