Absa’s forex trade suspended over irregular transactions
Thursday, April 9th, 2020
The Central Bank of Kenya(CBK) has taken regulatory action against Absa Bank over suspicious foreign transactions it did last month.
Upon investigation by the regulator, the bank was found not to have required assurance neither did it apply the standard checks to block money laundering.
Central Bank announced the actions on April 9 requiring Absa to ensure documents on forex transactions are available on requirement.
"By Wednesday, April 15, 2020, put in place a robust framework that ensures all relevant documents for such foreign exchange transactions are available as required," said CBK.
The regulator also ordered Absa to reverse the market positions created in the flagged deals.
Further, CBK suspended Absa from Forex trade for 6 days (April 9 to 15). Absa can, however, settle transactions done by April 8.