Family Bank has agreed to pay a fine of Sh 64.5 million for failing to report Josephine Kabura's suspicious transactions amounting to Sh1.6 billion in 2014 and 2015 in the first NYS scandal.
The fine was settled in a plea bargain between the bank and the office of the DPP.
The bank will pay the first instalment of Sh24.5 million which shall be deposited in the NYS account while the remaining Sh 40 million shall be deposited as a court fine.
At the plea bargain the bank agreed that had the case gone to full trial, the state would have presented sufficient evidence to prove that the bank failed to report unusual transactions relating to three accounts held by Kabura.
The agreement dated December 11 is signed by DPP Secretary Dorcas Oduor and Family Bank's lawyer Waweru Gatonye.
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The pact puts to end the case of aiding and concealing money laundering and proceeds of crimes against the bank and its seven officials.
The state prosecutions office had charged the bank and its top managers with three counts of failure to report suspicious transactions and three others of failure to file reports of cash transactions equivalent to or exceeding [USD 10, 000] Sh1 million.
"I admit the facts contained in the plea agreement and whose contents I have fully understood. I plead guilty to the charges and every element set out in the plea agreement freely and voluntarily," the bank states in the pact signed by the company secretary Rebecca Mbithi.
The managers charged alongside the bank are Peter Munyiri, Robert Nyaga, Charles Thiong'o and Raphael Ndunda.
Others are Meldon Onyango, Josephine Wairi and Nancy Njambi.
The Bank had been accused that on December 22, 2014, and May 19, 2015, the accused being a reporting institution failed to comply with its reporting obligations by failing to report unusual transactions.
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