in the face of the massive amounts of cash involved in the National Youth Service scandal.
This came as it was revealed that the Central Bank of Kenya (CBK) had fined Family Bank Sh1 million for allowing the withdrawal of huge sums of money over the counter by a business person linked to the fraud.
In a statement, the CBK said anyone wishing to withdraw Sh1 million ($10,000) and above from a bank will be required to fill in a form showing the source of funds, reason for withdrawal and identity of the beneficiaries.
The customer will also be required to reveal what the money will be used for, the direct and indirect beneficiaries and their identities.
“This new guideline aims to reduce the risk inherent with cash transactions, such as losses due to fraud and theft. We encourage you to consider use of electronic payments, which are an alternative and secure channel,” it said.
The move comes after Ms Josephine Kabura Irungu revealed in a bare-all affidavit involving former Cabinet Secretary, Anne Waiguru, that large amounts of cash were withdrawn from her firms’ accounts at Family Bank, KTDA Plaza branch in Nairobi while she carried out business with the NYS.