Home Business CBK warns remittance service providers operating without license

CBK warns remittance service providers operating without license

The Central Bank of Kenya (CBK) is threatening to take legal action against individuals and firms providing money remittance services and payment services without proper license.

The regulator says it has noted that there firms providing payment services and money remittance services contrary to the National Payment System Act, 2011 and Money Remittance Regulations, 2013 respectively.

Channel 1

According to CBK, such services do not enjoy the protection of the law and consumers stand to lose in case of any default by the providers of the said services.

“This is to caution and/or warn members of the public against seeking money or value transfer services such as “hawala” from unlicensed service providers. The CBK has a duty to identify entities and persons providing unlicensed or unauthorized money or value transfer services and to have them prosecuted in a court of law,” said CBK.

A person operating an unauthorized payment service or money remittance services is liable upon conviction to a not exceeding Ksh 500,000 or to imprisonment for a term not exceeding three years or both.

The bank is now calling on the members of the public  to submit to the CBK, information on the identities and physical locations of entities and persons providing money or value services without a license or authorization.

Website | + posts