Banks are required to submit weekly reports on the exchange of old notes for the new ones.
The Central Bank of Kenya (CBK) gave the order in a circular instructing the lenders to capture and obtain identification documents of all persons who will be depositing old notes to acquire new ones.
“Commercial banks shall submit to the CBK periodic weekly reports in the returns attached to the banking circular,” the circular reads in part.
Banks will also have to compel the customer to disclose the source of the funds and the purpose for the funds.
“These returns should reach the CBK by 9 am of first working days of the following week,” instructed CBK.
Also Read: CBK Directive to Persons Holding Sh5 Million and Above in Cash
The move is aimed at curbing criminals who want to clean their money by obtaining the newly-launched currency.
CBK also reminded financial institutions that they are expected to adhere to the Anti-Money Laundering (AML) act of 2009 and regulations 12 and 31 of the Proceeds of Crime and crime of AML of 2013.
There are more than 200 million pieces of the current Ksh1,000 banknotes in circulation in Kenya. CBK hopes to get back 83 percent of the notes before the October 1 deadline.
The full transition is expected to take three years and will cost Sh15 billion.