AN NGO has criticised the government for failing to take action against Charterhouse Bank, despite having evidence of malpractices African Centre for Open Governance boss Gladwell Otieno said this is an example of systemic failures of institutions in the country.
Otieno wondered why the CID, KACC, the Attorney General’s office, Treasury and KRA remain powerless although there is sufficient and strong evidence that Charterhouse violated the Banking Act and its clients were involved in highly suspicious activities. “These issues are slipping down the agenda and it is becoming characteristic of impunity in Kenya. If we don’t act now, Kenya will turn into a criminal haven,” Otieno said.
Three teams including Pricewaterhouse Coopers, Central Bank of Kenya’s due diligence team raised serious questions about operations at Charterhouse bank with indications that its clients were involved in both tax evasion and money laundering.
Crimes suspected to have been committed by Charterhouse bank by the three teams were identified as breach of the know your customer regulations, structuring or splitting deposits and payments, unusual large cash transactions and webs of related companies’ accounts.
She warned that Kenya’s failure to strengthen anti-money laundering laws will result in loss of investor confidence and risk becoming a transit point and haven for serious international crimes.
The Africog executive director said there was evidence that Charterhouse bank repeatedly flouted the Banking Act and prudential guidelines in complete disregard of CBK regulations and its licence should have been revoked.
According to the report, 839 accounts of the 1,004 accounts at Charterhouse bank had violated CBK’s guidelines because they missed basic customers details such as name, addresses, ID photo or signature cards. She said KRA owes the country an explanation about its investigations and action should be taken against tax evaders.
