Banks Ordered to File Weekly Reports on New Currency Seekers

Kenyans with illicit money and rushing to the banks to exchange with the new generational banknotes thinking they are safe are mistaken as CBK seems determined to catch up with them.

The Central Bank of Kenya has now instructed banks to be filing weekly reports on persons exchanging old notes with the new ones in a circular dated June 10.

According to the CBK, the move is aimed at curbing exchange of illicit money through the banks as well as safeguarding banks from being used to “clean dirty money.”

“Commercial banks shall submit to the CBK periodic weekly reports in the returns attached to the banking circular. These returns should reach the CBK by 9 am of first working days of the following week,” stated part of the circular.

Banks now will have to capture and obtain identification documents of all persons who will be depositing old notes to acquire new ones. Banks will also have to compel the customer to disclose the source of the funds and the purpose for the funds.

Read:

• What you Need to Exchange Current 1,000 Banknotes for New Currency
• CBK to use 15 Billion Shillings to roll out the New Currency

The new move is set to close out billions of shillings already in circulation and in the hands of those who might have acquired them through dubious means. There are more than 200 million pieces of the current 1,000 banknotes in circulation in Kenya.

CBK says that it hopes to recall at least 83 percent of the old 1,000 banknotes in circulation at the start of October this year. After the 1^st of October, the current 1,000 banknotes will become valueless and the new ones take effect.

According to CBK, the full rollout of the new generational banknotes will take three years and is set to cost the taxpayer at least 15 billion shillings in costs.

The Bank of Tanzania and Uganda have stopped the use of the Kenyan currency in an effort to curb its banks from being used to launder stolen back into Kenya.