CBK suspends Absa Bank Kenya’s trading license
The Central Bank of Kenya has suspended Absa Bank Kenya’s Foreign Exchange trading licence from today (April 9) to April 15 2020, for failing to report specific trades it conducted in March.
In a press statement, the CBK said the lender termed the move as a regulatory action against the lender for failing to provide specific foreign exchange trades it conducted in March.
“During this period, Absa cannot transact in the inter-bank foreign exchange market. However, all committed transactions as at April 8, 2020, can be settled,” reads the statement.
CBK said Absa did not have the satisfactory assurance of the underlying commercial transactions supporting these trades, as is required.
The bank has been ordered to reverse the market positions that were created as a result of the alleged transactions.
Absa should also by Wednesday, April 15 put in place a robust framework that ensures all relevant documents for such foreign exchange transactions are available as required and also to ensure the other requirements are adhered to.