Family bank fined Ksh40m over money laundering, not reporting suspicious

Family Bank has been slapped with a 40 million shillings fine after pleading guilty to money laundering and failure to report suspicious transactions in relation with the 1.6 billion shillings scam at the National Youth Service.

Chief Magistrate Francis Andayi further ordered the Bank to pay National Youth Service 24 million shillings for damages failure to which its assets will be attached.

Appearing before Chief Magistrate Francis Andayi, Family Bank through its Chief Executive Officer John King’ori pleaded guilty to six counts of failing to report fraudulent transactions and money laundering.

The development came after Family Bank and its senior managers agreed to enter a plea bargain agreement with the Director of Public Prosecution where three charges were withdrawn.

The transactions are alleged to have been made by Josephine Kabura a prime suspect in the NYS scam.

Meanwhile, the corruption and abuse of office case facing former Sports Cabinet Secretary Hassan Wario and 5 others failed to kick off Tuesday after it emerged that Wario and his co accused were not served with evidence by the prosecution.

Anti-corruption Chief magistrate Douglas Ogoti ordered the DPP to investigate non-compliance with orders concerning evidence in the case.

The court adjourned the case to February 6 and directed the DPP to supply the accused with witness statements.

The former CS is on trial together with Stephen Soi, Harun Komen Chebet, Patrick Nkabu and Francis Kinyili Paul in regard to the 2016 Rio Olympics scandal.

Finally, the woman accused of killing Vioja Mahakamani actor Jamal Gadaffi was on Tuesday charged with murder. Grace Kananu Namu however denied the charges after she was arraigned before High Court Judge George Odunga.

Through her lawyer, Kananu pleaded to be released on bond, a request that was not granted.

The judge ordered the prosecution to supply copies of the information on her medical report to the accused with the case set to be mentioned on 20/2/2019.