Kenyan parliament stagnant progress in joining the Financial Action Task Force (FATF) or the acceptance of certain protocols against money laundering, corruption and terrorism funding, controversies will see Kenyan banks blacklisted internationally.
MPs Aden Duale (Leader of Majority) Junet Mohamed (Suna East) among others have accused CBK governor Dr Njoroge of using illegal means to regulate the banking industry, a move they said had stifled liquidity in the financial sector.
But what does CBK governor want
Basically what the CBK governor is advising MPs is that the new banking law will lock Kenya out of the global financial system if implemented.
Currently, one cannot withdraw more than Sh1 million a day or make big deposits without attracting the hawk-eyed Financial Reporting Centre, which is responsible for to detecting and reporting such transactions.
“When you sell your three camels and go to the bank, you are asked where the money is coming from. What the governor is doing is not good for a growing economy like Kenya. The whole liquidity in the bank is stifled. This tendency of disregarding Parliament and its powers, must stop,” Duale said
MPs want to deposit money without being asked a question.
The MPs have even vowed to show the CBK chief the door.
“Kenya’s banking sector will be blacklisted internationally and the country will most likely be blacklisted by the FATF,” the CBK boss insisted.
ATF is an inter-governmental body established to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and proliferation of weapons of mass destruction.