CBK to look into rules on safe deposit boxes after fake currency haul

CBK to look into rules on safe deposit boxes after fake currency haul

May 22, 2019 0 By mykenyancareers
PATRICK NJOROGE SIT - CBK to look into rules on safe deposit boxes after fake currency haul
Njoroge added that the CBK is up to task to investigative how fake currency penetrated its way in the bank’s safe box without the knowledge of the bank./FILE

NAIROBI, Kenya, Mar 28 – Central Bank of  Kenya Governor Patrick Njoroge has acknowledged the circulation of fake currency in the Kenyan market but said the regulator is working on tight measures to ensure the protection of consumers.

The governor said it impossible for him to deny that there is not a single note of fake currency used for business transactions in the Kenyan market.

“There’s fake currency circulating in the market and for a fact, we are not going to deny it. However there is no cause of alarm. We have put in place systems that will minimize their entry into the market,” he said.

Njoroge added that the CBK is up to task to investigative how fake currency penetrated its way in the bank’s safe box without the knowledge of the bank.

The Sh2 billion US dollar fake notes were traced by police to a safe deposit box at Barclays Queensway branch.

Three people have subsequently been charged with conspiracy to defraud a businessman using the fake notes.

“It is very important to note that the fake currencies were not in the banking system. This is just like a P.O Box and we can actually compare this to pick pocketing,”said the governor.

“What we are discovering now is that there is a misuse of safe deposit boxes that is going on. These boxes are personal and therefore it is really difficult for a bank to start snooping in your personal belongings. We will find a way to go around this and no one should be worried,” the governor added.

The Governor assured Kenyans that banks are adhering to regulatory rules to ensure deposit boxes are not used for illegal transactions.

His remarks on fake currency come a month after police traced Sh32 billion in fake currency in Ruiru.

“The fake currency does not necessarily affect the exchange rate and it should not be affected. The exchange rate policy has a flexible exchange rate system and no one has control over it,” said Njoroge.