- DCI is probing cases of suspicious cash transactions that have been flagged by banks during the ongoing demonetisation of Sh1,000 note.
- CBK says it has collected nearly half of Sh1,000 notes in circulation.
- The old generation bank notes will be worthless papers from October 1, 2019.
Crime busters at Directorate of Criminal Investigations (DCI) are probing cases of suspicious cash transactions that have been flagged by banks during the ongoing demonetisation of Sh1,000 note.
Central Bank Governor Patrick Njoroge says some of those cases are of people who wanted to change more than Sh5 million to new currency notes.
“We have shared the information we have gathered so far with the DCI for further investigations. Our role as the regulator is to work with the investigating agencies to ensure that we achieve our goal,” Dr Njoroge said on Thursday night on Citizen TV.
He said investigations on people holding illicit money would continue even after the old notes are phased out after September 30.
So far, he said, banks have collected more than 100 million pieces of old Sh1,000 notes out 217 million pieces that were in circulation when the demonetisation was announced.
“We expect to collect more notes as the deadline nears because most people like doing things the last minute,” he said.
However, Dr Njoroge ruled out 100 percent success of the demonetisation, saying some have “laundered the illicit proceeds in properties in the country and abroad.”
CBK caught the country by surprise on Madaraka Day when it announced that it was withdrawing the Sh1,000 notes in a bid to counter counterfeits, corruption and money laundering.
During the demonetisation, individuals exchanging less than Sh1 million of the old notes and non-account holders were instructed to exchange them through the currency centres, CBK branches and commercial banks.
Bank customers and non-account holders having an excess of Sh5 million are required to get Central Bank’s approval.
The old generation bank notes will be worthless papers from October 1, 2019.