Family Bank Limited has pleaded guilty to six counts of offences in Sh 1.6 billion NYS scandal.
After pleading guilty before trial magistrate Francis Andayi, the bank, through its representative John King’ori was fined Sh 64.5 million.
The prosecution told the court that the bank has been cooperating with the Central Bank of Kenya (CBK) and has put mechanism to deter future recurrences of such transactions.
This comes after several plea bargain proposals to the ODPP whereby two of them flopped.
The counts pleaded guilty to involve failure by the bank to report suspicious transactions.
Other charges relate to failure to report transactions equivalent to or exceeding 10,000 US dollars (Sh 1 million).
The transactions are alleged to have been made by Josephine Kabura, a prime suspect in the first NYS scam.
In the case, the bank was charged alongside charged alongside former CEO Peter Munyiri ,KTDA Branch Manager Robert Oscar Nyaga, Anti-money compliance manager Charles Kamau Thiongo, Head of Risk and compliance Raphael Mutinda Ndunda, Operations Supervisor Nancy Njambi , Relationship Platinum manager Meldon Awino Onyango and Customer Service supervisor Josephine Wairimu.
In the transactions, Kabura allegedly carried on business under the name ‘Reinforced Concrete’ Technologies.
King’ori was also charged with aiding and abetting the offence of money laundering for Sh 320,160,000 whose effect was to diminish the said sum which was acquired directly as a result of commission of the offence.
