Banks Ordered To Make Weekly Reports On Persons Changing Old Cash With New Notes

The Central Bank of Kenya (CBK) has ordered Banks to submit weekly reports on the exchange of old bank notes for the new ones.

In a circular, CBK instructed the lenders to capture and obtain identification documents of all persons who will be depositing old notes to acquire new ones. They will also have to compel the customer to disclose the source of the funds and the purpose for the funds.

“Commercial banks shall submit to the CBK periodic weekly reports in the returns attached to the banking circular. These returns should reach the CBK by 9 am of first working days of the following week,” stated part of the circular.

Read: CBK Governor Patrick Njoroge Outlines Regulations For Changing Ksh1,000 Banknotes

The move is aimed at curbing crooks who want to clean their money, by obtaining the new currency.

According to the CBK, there are more than 200 million pieces of the current Ksh1,000 banknotes in circulation in Kenya.

Of the notes, the CBK hopes to get back 83 percent of the notes, while the remaining will be left to become useless after the October 1 deadline.

Full transition from the current bank notes will take three years and will cost Ksh15 billion.

Read: UK, America Envoys Hail CBK’s New Banknotes Directive To Curb Thievery

Tanzania and Uganda have already suspended exchange of Kenyan currency with theirs, while the United Kingdom has issued precautionary statement on exchange to their lenders.

Kenyans who want to exchange the old notes for a value less than Ksh1 million can do so at their bank branches, according to regulations issued by CBK.

However, any Kenyan without bank accounts can exchange at any branch of any bank while those who want to exchange amounts between Ksh1 million and Ksh5 million will need to go to their own banks.

Read also: EALA MP Simon Mbugua Wants CBK Governor Patrick Njoroge Ousted Over New Currency

Those who do not have bank accounts and want to exchange amounts between Ksh1 million to Ksh5 million will need to contact the CBK which will then endorse them and they can go to a designated bank branch.

People who would like to exchange amounts above Ksh5 million will need to contact the CBK.