Family Bank is expected to plead guilty in a case where the lender is accused of handling money looted from the National Youth Service (NYS).
Reports indicate that the bank has reached a plea bargain agreement with the Director of Public Prosecutions. Family Bank’s Head of Security Joseph King’ori will plead guilty to six counts of failure to report transactions made by the NYS scandal suspects.
“The accused person is entering into this Plea Agreement and is pleading guilty freely and voluntarily without promise or behalf of any kind,” reads the plea agreement.
Further, the bank is expected to pay Sh64.5 million as court fine for the six counts of failing to report suspicious transactions.
According to the documents filed in court, a total of Sh24.5 million will be deposited into the NYS account while the balance of Sh40 million shall be deposited as court fine.
“If the accused person (Family Bank) fails to comply with the terms and conditions set forth in the plea agreement, the State may fully prosecute the accused on all criminal charges that can be brought against it,” reads the agreement in part.
Last month, the Central Bank of Kenya (CBK) announced a Sh392.5 million fine for all banks that handled the NYS loot. They included Standard Chartered Bank, Equity Bank, KCB Bank, Co-operative Bank, and Diamond Trust Bank Kenya.
KCB was fined Sh149.5 million for handling Sh639 million of the NYS cash. Equity was fined Sh89.5 million for having handled Sh886 million while Standard Chartered was fined Sh77.5 million on account of having handled Sh1.63 billion.
Cooperative Bank was fined Sh20 million while DTB was fined Sh56 million.
In a statement last September, Central Bank indicated that over Sh3.6 billion was wired through the banks, with the largest flow of Sh1.6 billion having been channeled through Standard Chartered Bank.