The Central Bank of Kenya (CBK) has warned Kenyans against money transfer services that are operating without authorization.
In a statement on Monday, November 6, CBK noted that it was a criminal offence to provide money or value transfer services without a license from the monetary authority.
Further, CBK highlighted a transfer service known as ‘Hawala’ which it noted Kenyans should be wary of.
“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.
“Such services do not enjoy the protection of the law and consumers stand to lose in case of any default by the providers of these services,” the statement read in part.
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CBK Details How Kenyans Can Tell Apart Licensed and Unlicensed Providers
At the same time, the statement indicated that it was possible for Kenyans to tell apart the cash transfer services that were licensed and those that were not licensed.
According to the authority, operators that had the authority to offer services had a display of a CBK license.
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Furthermore, it explained that the license was meant to make it easy for the public to refer and ascertain credibility.
“Licensed entities operate as payment service providers or money remittance providers and they conspicuously display the CBK license or authorization in their business premises, for ease of public reference,” it added.
Notably, CBK stated that members of the public could access the list of licensed money remittance providers and payment service providers on the CBK website.
Action Against Unlicensed Value Transfer Services
On the other hand, CBK warned that entities found operating without a license would be prosecuted in court.
“CBK has a duty to identify entities and persons providing unlicensed or authorized money or value transfer services and to have them prosecuted in a court of law,” CBK warned.
Additionally, members of the public were requested to anonymously submit any information on such providers to help apprehend them and bring them to justice.
“Members of the public are hereby requested to submit to CBK, information on the identities and physical locations of entities and persons providing money or value services without a license or authorization from CBK.
“The information may be submitted anonymously if the person reporting does not wish to disclose his or her identity,” added the authority.
