The Kenya Bankers Association says there will be likely attempts by criminal formations and unscrupulous individuals to launder illicit funds through the banking system in the name of replacing the old generation notes.
Through a statement in the local dailies Wednesday, KBA advises “banks, bank agents and retailers, as well as citizens in general, to be especially vigilant during the transition period.”
“There may be attempts to launder illicit funds through the banking system during the exercise of replacing the old generation notes with the newly released ones,” stated the advertorial.
The organisation pointed out that banks had put in place mechanisms to receive the old notes and provide their customers with the new currency notes.
The process includes re-configuring ATM machines and currency counters.
Kenya has an estimated 1,700 ATM machines, 780 bank outlets and 66 agents around the country.
Banks and other financial institutions have a statutory and legal obligation to undertake due diligence processes and report suspicious transactions to the Financial Reporting Centre.
The Central Bank of Kenya unveiled the new generation banknotes during Madaraka Day celebrations, governor Patrick Njoroge announcing the phasing out of the old KSh1,000 notes from 1 October as part of measures to curb money laundering and counterfeits.