Five banks have entered a Deferred Prosecution Agreement that will see them pay Sh385 million for their involvement in the NYS-2 saga.
The banks KCB, Equity, Cooperative, Standard Chartered and Diamond Trust Bank will pay the amount as penalties for their respective violation of the various provisions of the Proceeds of Crime and Antimoney Laundering Act.
Once the money is paid into the prosecution fund account, it will be restituted to the public following existing laws.
Director of Public Prosecution Noordin Haji on Thursday said the banks have further agreed to take disciplinary action against their staff involved in violating the laws.
They should then forward the report of the said staff to ODPP for further action.
The banks have been directed to enhance their existing anti-money laundering and combating the financial terrorism monitoring systems to enable real-time monitoring of digital transactions.
According to Haji, a target inspection revealed that there was sufficient evidence against the five banks and their officials for failure to maintain effective program against money laundering and failure to conduct sufficient due diligence on some of the account holders
More to follow...
