Kenya’s Central Bank Governor Dr. Patrick Njoroge has obliged to lawmakers demands to publish banking regulations amended in August 2018.
The lawmakers have again summoned Mr Njoroge and want the Central Bank to scrap the rules that require persons transacting more than Ksh one million to declare the source of funds, the intended use and the recipient.
CBK governor was expected to publish the amended law within 30 days from the first day of October 2018. In his defense, the governor said that it was impossible to implement the law within the set deadline.
Dr. Patrick Njoroge has also warned that if the regulations are scrapped, it will open up Kenya’s financial system to criminal activities such as money laundering and illicit financial transactions. The governor also said that Kenya will be cut off from the international banking system due to the removal of the anti-money laundering laws.
During a session with members of parliament, Dr. Njoroge said, “The adverse effects of the amendment of the banking sector would be immediate termination of relationships by foreign correspondent banks and closure of accounts of Kenyan banks.“
Some legislators claimed that the governor’s failure to implement the law was contempt of parliament and threatened to remove the CBK boss from his position.