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Family Bank managers to be probed over Sh791m NYS scandal

Seven Family Bank managers were Wednesday placed under investigation for their role in the theft of Sh791 million from the National Youth Service (NYS).

Director of Public Prosecutions (DPP) Keriako Tobiko asked the Directorate of Criminal Investigations (DCI) to interrogate the seven and record their statements as suspects in the theft.

The seven individuals Mr Tobiko wants investigated include Robert Oscar Nyaga (branch manager), Josephine Njeri Waira (branch customers service supervisor), Martin Kagiri (operations supervisor), Meldon Onyango (relationship manager) and Nancy Njambi, the platinum manager and head of risk and compliance department.

They all worked in the bank’s KTDA Plaza branch.

If charged and found guilty under the Proceeds of Crime and Anti-Money Laundering Act, they face imprisonment for a term not exceeding 14 years or a fine not exceeding Sh5 million or the amount of the value of the property involved in the offence, whichever is the higher, or to both the fine and imprisonment.

REDISTRIBUTED

Earlier investigations had indicated that the Sh791 million was first transferred to a Family Bank account held by a supplies company — Form Home Builders — from where it was then re-distributed to 20 accounts in different banks.

Mr Tobiko also put the bank under investigation to determine whether it complied with laws relating to money laundering and proceeds of crime.

Financial institutions are required to report any transaction above $10,000 (Sh1 million) or its equivalent in any other currency as well as any complex, unusual or suspicious transaction to the Financial Reporting Centre (FRC).

ANTI-MONEY LAUNDERING

“I direct that the investigations being carried out by FRC/Central Bank to determine whether there was non-compliance by Family Bank with provisions of the Central Bank Act; the Banking Act; and Proceeds of Crime and Anti-Money Laundering Act and the regulations there under be completed and the file submitted within seven days for perusal and appropriate action,” Mr Tobiko said in a letter circulated to newsrooms.

The Proceeds of Crime and Anti-Money Laundering Act requires banks to report large volumes of money transacted and “pay attention to all unusual patterns of transactions, and to insignificant but periodic patterns of transactions which have no apparent economic or lawful purpose.”

Read the full story here.

SOURCE: Business Daily