The Central Bank of Kenya (CBK) is cautioning Kenyans against dealing with individuals and entities offering payment services without licenses.
The banking sector regulator asked Kenyans to observe precautionary verification measures before procuring the services.
“It has come to the attention of the Central Bank of Kenya that there are entities and persons providing money or value transfer services without the requisite license or authorisation from the Central Bank of Kenya,” the regulator said in a statement yesterday.
According to it, payment services are regulated under the National Payment System Act, 2011.
Similarly, money remittance services must be in tandem with the Money Remittance Regulations, 2013.
“This is to inform members of the public that it is a criminal offence to provide money or value transfer services without a license or authorization from the CBK,” the CBK said in a statement.
Kenyans living and working abroad have been increasingly avoiding banks when wiring cash home in favour of less costly traditional money transfer methods such as “hawala” amid money laundering concerns.
“This is to caution and/or warn members of the public against seeking money or value transfer services such as “hawala” from unlicensed service providers,” said CBK.
It is also asking members of the public to report firms and individuals providing the above services contrary to the law.