Withdrawing Ksh10 million or more from your account will now require you to issue a three-day notice to your bank.
This is after the Kenya Bankers Association (KBA) declared tougher laws to all member banks in the heightened war against corruption such as the recent National Youth Service (NYS) Scandal .
According to a circular issued by the governing council and copied to Central Bank of Kenya (CBK), any cash transactions on a single day of between Ksh1 million to Ksh10 million will require the approval of branch manager.
[caption caption="Ksh18m cash nabbed from drug barons in 2017"]
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Besides, withdrawals between Ksh10 million and Ksh20 million will have to be approved by a regional branch manager or a senior manager from the bank and head of branch banking or director for transactions beyond Ksh20 million.
KBA Chief Executive Habil Olaka noted that the new guidelines are in line with the CBK’s circulars on money laundering and will help in curbing graft through the financial sector.
"The council deliberated on the need to demonstrate a clear commitment to fighting graft as an industry
"There was a need to further strengthen controls across all member banks over and above the minimum," Olaka stated.
CBK has in the past issued guidelines and regulations on Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) and the Proceeds of Crime and Anti-Money Laundering Act.
However, the runaway corruption in the country has in the past seen MPs term banks as conspirators in the war against corruption as the proceeds of corruption are channelled through the institutions.
[caption caption="Kenya Bankers Association CEO Habil Olaka"]
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Customers will have to explain and proof sources of their money before deposits are made, explain the reason for withdrawing out the money and why Real Time Gross Settlement (RTGS) cannot be used and give copies of the IDs of all the people who will receive the large withdrawals.
