Kenya’s central bank has ordered Absa Bank Kenya to stop foreign exchange dealing between April 9 and April 15 for failing to observe anti-money-laundering rules on some trades, the regulator said.
The central bank said it took action over some foreign exchange trades Absa Bank carried out in March, and said Absa also failed to satisfactorily make “know your customer checks” in the trades.
“Absa Kenya is required to … reverse the market positions that were created as a result of the flagged transactions,” the central bank said in a statement.
The bank said Absa would also be required by April 15 to have put in place stronger measures to make sure all documentation needed for foreign exchange transactions was available and followed the regulations.
It said Absa Bank can settle all transactions it did as of April 8.
“Absa Kenya’s acknowledgement of its obligations as an authorised foreign exchange dealer and its commitment to address the underlying issues is noted,” the central bank said.