Kenyan Commercial Banks to Monitor Large Transactions Under New Regulations
- Kenyan commercial banks are set to begin monitoring substantial cash deposits and transfers exceeding KES 1 million.
- The use of 'purpose of payment' (PoP) transaction codes is mandated, which could accelerate the adoption of ISO 20022 standards.
- NCBA, Kenya's fourth-largest commercial bank, has notified its customers of these new requirements.
The implementation of new regulations to monitor large transactions and the use of PoP codes will enhance transparency and regulatory compliance in Kenyan commercial banks. This initiative is expected to improve the efficiency of cross-border payments and prevent money laundering and terrorism financing. However, banks should ensure a smooth transition to these new payment standards to avoid penalties.
