Central Bank of Kenya has suspended Absa Bank Kenya’s foreign exchange licence for seven days for failing to report specific foreign exchange trades it conducted last month.
“During this period, Absa cannot transact in the inter-bank foreign exchange market. However, all committed transactions as at April 8,2020 can be settled,” Governor Patrick Njoroge said.
In a statement on Thursday, Njoroge said Absa flouted the anti-money laundering rules during the trade hence the actions.
Njoroge said Absa did not have satisfactory assurance of the underlying commercial transactions supporting these trades, as is required.
The bank has been ordered to reverse the market positions that were created as a result of the alleged transactions.
Absa should also by Wednesday April 15 put in place a robust framework that ensures all relevant documents for such foreign exchange transactions are available as required and also to ensure the other requirements are adhered to.
This move comes barely three months since transforming from Barclays.
The lender is expected to complete the rebranding and transition process before June 2020.
Absa has been undergoing a transition after parting ways with Barclays Plc, which reduced its shareholding in the African financial services group to a minority stake in 2017.
Barclays Africa operates in 12 countries with approximately 40 thousand employees who serve close to 12 million customers.