Central Bank of Kenya Governor Patrick Njoroge yesterday said that Family Bank should be prosecuted over the theft of Sh. 1.6 billion NYS money.
In a letter to Directorate of Criminal Investigations boss Ndegwa Muhoro and Director of Public Prosecutions Keriako Tobiko dated August 12, Njoroge said the prosecution of Family Bank officials implicated in the scam would send a strong message to banking sector players.
“The prosecution of Family Bank and other related parties involved in non–compliance with reporting is unlikely to have an adverse impact on the bank. On the contrary, it will have a positive effect on the sector and enhance accountability,” he said.
All the NYS cash was paid out in three accounts held at Family Bank, after which they were transferred to other bank accounts held by the suspects, who have been charged in court.
The bank has already been fined Sh.1 million for failure to report the large transactions conducted by NYS suspects.