CBK lifts suspension of 13 money remittance firms

The Central Bank of Kenya had suspended operations of 13 money transfer companies for alleged involvement in funding terrorism. The suspension was Monday, June 22 lifted with immediate effect.

The Central Bank of Kenya Monday officially lifted the suspension of 13 money remittance firms shut down two months ago over claims of financing Al Shabaab.

This comes four days after President Uhuru Kenyatta issued an order to CBK to immediately issue new regulations governing the operations of the suspended firms and allow them back to business.

Abdirashid Duale, CEO of Dahabshiil, one of the largest money transfer firms that had been suspended, confirmed that they are now back in business after receiving communication from CBK.

He said in a statement that authorities have carried out a comprehensive review of their operations, policies and practices and given them a clean bill of health.

"They are satisfied that the company complies fully with the law, and operates strict anti-money laundering and counter-terrorism financing practices. We are delighted to resume our services in Kenya," he said.

He added: "The Dahabshiil network operates in 126 countries, including Kenya, the UK and the USA, and we respect and comply with all the laws of each and every country."

Among the money remittance firms that are back in business include Dahabshiil Money Transfer Ltd, UAE Exchange Money Transfer Ltd, Kendy Money Transfer, Amal Express, Tawakal Money Transfer and Kaah Express.

Others are Jubba Express, Iftiin Express, Hodan Global, Amana Money Transfer, Bakaal Express, Continental Money Transfer and Flex Money Transfer.

The Dahabshiil CEO said that the firm makes significant contributions to the Kenyan economy by creating hundreds of thousands of jobs, either by providing direct employment, or by enabling the transfer of investment funds, which creates more jobs, and further helps reduce poverty.

On his part, Anthony Wachira, CEO of the Kenya Forex and Remittance Association (KFRA), the umbrella body for the 13 money remittance firms, also confirmed the CBK move but promised to issue a comprehensive statement Tuesday.

President Kenyatta said he made the decision to lift the suspension after being briefed on the progress of the on-going investigations on the financing of terrorism and received the proposal to lift the suspension.