Kenyans were shocked on Tuesday with news that Flying Squad
detectives found Sh2 billion fake money at Barclays Bank’s Queensway
branch.
detectives found Sh2 billion fake money at Barclays Bank’s Queensway
branch.
The fake notes in 100-US-dollar denominations were found hidden in one of the bank’s safe boxes.
Reports
indicated that five people were arrested — three men and two women — in
connection with the stash and that the safe box had been in operation
since 2017.
indicated that five people were arrested — three men and two women — in
connection with the stash and that the safe box had been in operation
since 2017.
As detectives worked to unravel the case,
questions were asked, including how the bank did not notice the
existence of the fake money.
questions were asked, including how the bank did not notice the
existence of the fake money.
So what does it take to obtain a safety deposit box at a bank and how is one operated?
Here is an overview:
What is a safe box?
A
safe deposit box is a strong storage container maintained in the vault
area of a bank and rented to bank clients for safekeeping of their
valuables. These boxes are said to be resistant to fire, floods and
theft, and their contents are covered by the bank’s insurer.
safe deposit box is a strong storage container maintained in the vault
area of a bank and rented to bank clients for safekeeping of their
valuables. These boxes are said to be resistant to fire, floods and
theft, and their contents are covered by the bank’s insurer.
What are safe boxes in banks used for / What can be kept in them?
The
safe boxes are rented by clients wishing to store vital documents such
as logbooks, title deeds, marriage certificates, insurance policies,
jewellery, foreign currency, educational certificates among others.
safe boxes are rented by clients wishing to store vital documents such
as logbooks, title deeds, marriage certificates, insurance policies,
jewellery, foreign currency, educational certificates among others.
However,
clients are discouraged from storing essential documents such as Wills
and passports. It’s advisable to keep a Will with a lawyer for easy
access by family members upon one’s death. What can be kept in the vault
is a copy of the same.
clients are discouraged from storing essential documents such as Wills
and passports. It’s advisable to keep a Will with a lawyer for easy
access by family members upon one’s death. What can be kept in the vault
is a copy of the same.
Do banks allow cash to be kept in safe boxes?
Cash can be kept in the boxes but it does not earn interest.
How are they operated and who has access?
One
key is issued to the client for access while the bank retains a copy.
The two keys are needed to access the contents of the box so both the
customer and a bank staff have to be present to open the safe.
key is issued to the client for access while the bank retains a copy.
The two keys are needed to access the contents of the box so both the
customer and a bank staff have to be present to open the safe.
Each
bank has its own guidelines on who can access the safe box. At the
Commercial Bank of Africa (CBA), for example, safe deposit lockers can
be operated by up to two people including an authorised agent.
bank has its own guidelines on who can access the safe box. At the
Commercial Bank of Africa (CBA), for example, safe deposit lockers can
be operated by up to two people including an authorised agent.
Do banks verify the contents of safe boxes?
Banks
do not check the contents of safety deposit boxes. This is because
since the contents are private and confidential, a client signs an
indemnity document that states that should authorities find anything
illicit, the person to be prosecute or held fully liable is the client
and not the bank.
do not check the contents of safety deposit boxes. This is because
since the contents are private and confidential, a client signs an
indemnity document that states that should authorities find anything
illicit, the person to be prosecute or held fully liable is the client
and not the bank.
This is why a safety deposit is usually covered by a cash margin or deposit in case of any eventualities or penalties.
What is the procedure for getting a safe box at a bank?
The
client expresses interest in renting the box and then pays for the
service after fulfilling all the legal requirements and following laid
down procedures for the same.
client expresses interest in renting the box and then pays for the
service after fulfilling all the legal requirements and following laid
down procedures for the same.
The
requirements vary depending on whether the safe box is intended for an
individual, a company, a partnership, a club or an association.
requirements vary depending on whether the safe box is intended for an
individual, a company, a partnership, a club or an association.
For
the CBA, an individual is required to submit a duly completed and
signed application form, original Kenyan national identity card or valid
passport and the photocopies for each signatory.
the CBA, an individual is required to submit a duly completed and
signed application form, original Kenyan national identity card or valid
passport and the photocopies for each signatory.
A
limited company is required to submit a board resolution, signed by at
least two directors, stating the intention to lease a locker, the
required size and the signing/operating mandate.
limited company is required to submit a board resolution, signed by at
least two directors, stating the intention to lease a locker, the
required size and the signing/operating mandate.
How much does this service cost?
The
Co-operative Bank of Kenya offers a standard annual fee of Sh3,000
while Stanbic, CBA and I&M rates are dependent on the size of the
box, which is determined by the bulk of the contents.
Co-operative Bank of Kenya offers a standard annual fee of Sh3,000
while Stanbic, CBA and I&M rates are dependent on the size of the
box, which is determined by the bulk of the contents.
Stanbic
charges its clients between Sh2,400 and Sh6,000, exclusive of a 16 per
cent value added tax. Standard Chartered Bank halted the service in
2010.
charges its clients between Sh2,400 and Sh6,000, exclusive of a 16 per
cent value added tax. Standard Chartered Bank halted the service in
2010.
I&M safe deposit clients
are not subjected to any charges. Rather, they are required to place an
interest-free security with the bank. The amount differs depending on
the size of the box.
are not subjected to any charges. Rather, they are required to place an
interest-free security with the bank. The amount differs depending on
the size of the box.
Clients are
also required to hold personal accounts with the bank. The deposit
ranges from Sh80,000 to Sh300,000 and the money is refundable.
also required to hold personal accounts with the bank. The deposit
ranges from Sh80,000 to Sh300,000 and the money is refundable.
For
CBA, the annual cost ranges from Sh2,000 to Sh5,800 depending on the
size of the box. The client pays Sh200 per visit and is required to
deposit a fee of Sh10,000 which is non-interest bearing and refundable.
CBA, the annual cost ranges from Sh2,000 to Sh5,800 depending on the
size of the box. The client pays Sh200 per visit and is required to
deposit a fee of Sh10,000 which is non-interest bearing and refundable.
After how long are safe boxes considered abandoned?
According
to the Unclaimed Financial Assets Act, of 2011, uncashed bankers
cheques and contents in safe deposit boxes that are unclaimed for more
than two years are classified as unclaimed assets.
to the Unclaimed Financial Assets Act, of 2011, uncashed bankers
cheques and contents in safe deposit boxes that are unclaimed for more
than two years are classified as unclaimed assets.
The
assets are surrendered to the Unclaimed Financial Assets Authority
(UFAA), which keeps the cash in the Central Bank of Kenya’s trust
account.
assets are surrendered to the Unclaimed Financial Assets Authority
(UFAA), which keeps the cash in the Central Bank of Kenya’s trust
account.
Assets covered by the Act
also include bank cash balances, insurance policies, utility deposits
and court awards abandoned for between two and five years.
also include bank cash balances, insurance policies, utility deposits
and court awards abandoned for between two and five years.
What are the advantages of safe boxes?
Unlike
home safes, a safe deposit box is secure as it has a smoke detectors
and surveillance cameras and is made of fire resistant materials.
home safes, a safe deposit box is secure as it has a smoke detectors
and surveillance cameras and is made of fire resistant materials.
Kenyans
living abroad are some of those opting for safe deposit boxes as there
is the assurance that their important documents will not fall into the
wrong hands.
living abroad are some of those opting for safe deposit boxes as there
is the assurance that their important documents will not fall into the
wrong hands.
Are there concerns about safe boxes?
In
2018, John Mututho, a politician and former chairman of the National
Authority for the Campaign Against Alcohol and Drug Abuse (Nacada) boss,
asked the CBK to conduct an audit of bank safes, saying they could be
holding fraudulently acquired wealth.
2018, John Mututho, a politician and former chairman of the National
Authority for the Campaign Against Alcohol and Drug Abuse (Nacada) boss,
asked the CBK to conduct an audit of bank safes, saying they could be
holding fraudulently acquired wealth.
Mr Mututho expressed fear that some banks might be holding on to corruptly acquired cash.
“While
we should be worrying about loot stashed in foreign accounts, we should
not forget to probe local avenues that can be used to hide the cash,”
he said.
we should be worrying about loot stashed in foreign accounts, we should
not forget to probe local avenues that can be used to hide the cash,”
he said.