Absa bank has been restricted from carrying out activities in the foreign exchange market.
Central Bank of Kenya( CBK) says the action was taken against the bank after it failed to provide information about some specific foreign exchange trades conducted in March 2020.
According to CBK, Absa did not provide clarity on the transactions as required in the banking regulations.
“It is evident that Absa Kenya did not have satisfactory assurance of the underlying commercial transactions supporting these trades as is required nor did the bank ensure the standard checks on anti-money laundering and combating the financing of terrorism and know-your-customer requirement were applied.” A statement by CBK read.
The bank is now required to cease from transacting as an authorized foreign exchange dealer from Thursday, April 9 to Wednesday, April 15, 2020.
Absa will further ensure proper documentation of all foreign exchange transactions.
The bank had operated for years as Barclays Bank and rebranded just a month ago changing its name to Absa Kenya.
