Kenya: Cash Withdrawals Set to Rise to Sh2 Million After Cabinet Approval

19 July 2023
Capital FM (Nairobi)

Nairobi — You will soon be able to withdraw or deposit up to Sh2 million without a question at the bank following a new Cabinet approval.

Currently, customers face challenges withdrawing, depositing or transacting in any way amounts exceeding Sh1 million due to the existing regulations that require the bank to ask questions on source and destination.

The regulations are contained in the Anti-Money Laundering and Combating of Terrorism Financing Laws which the Cabinet wants amended.

On Tuesday, a Cabinet meeting chaired by President William Ruto approved the amendment which raises the threshold to $15,000 from the current $10,000 or Sh1 million.

Under the current laws, banks are required to report any large transactions to the Financial Reporting Centre (FRC).

"If enacted by Parliament, FRC, the anti-money laundering agency, will have the power to show the instances under which it might request for the revocation of a reporting institution's licence," a Cabinet dispatch states.

The Central Bank of Kenya (CBK) declined a request by former President Uhuru Kenyatta in his last year in office to increase the reporting limit.

This followed concerns from cash-intensive businesses which said they experienced challenges transacting.

The news laws restricting transactions of large amounts was enacted at the height of terrorism cases in the country to control its funding activities.

Read the original article on Capital FM.

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