The Director of Public Prosecutions will now seek to prosecute five commercial banks in relation to Ksh 8 billion rooted during the NYS 2 scandal.
This after the Director of Criminal Investigations carried investigations on criminal culpability on the said banks and forwarded recommendations to the DPP.
The banks are Standard Chartered Bank (K) Ltd, Kenya Commercial Bank (K) Ltd, Equity Bank (K) Ltd, Diamond Trust Bank (K) Limited as well as Cooperative Bank of Kenya.
The DCI recommends that charges be preferred against the five banks, bank officials, individuals and entities for concealing and facilitating, aiding, abetting and benefiting from proceeds of crime.
Central Bank also conducted an inspection of the said banks which resulted into penalties as well as a strict supervision regime to mitigate and address the identified lapses and gaps among other measures.
According a statement from the DPP, it was established that Standard Chartered Bank received an estimated Ksh 1.6b between January 2016 and April 2018, out of which, it was established that the amount of Kshs 588, 558,000 was suspiciously transacted by Bank officials and no report was made to the Financial Reporting Centre (FRC) as required under POCAMLA regulations.
Further Kenya Commercial Bank received a total of Kshs 800 million, of which Kshs 148, 397,000 was transacted by Bank officials without following regulations.
Equity Bank (on the other hand received a total of Kshs 886,426,904, out of which Kshs 264,200,000 and USD 58,000 were suspiciously transacted by officials of the Bank in violation of the law.
The recommendations also points out that Diamond Trust Bank received a total of Kshs 164 million, out of which an amount of Kshs 27,946.298 was suspiciously transacted by officials of the Bank in violation of the law.
Cooperative Bank of Kenya also received a total of Kshs 250 million with investigations revealing that Kshs 25 million was suspiciously transacted through the Bank in violation of the law.