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CBK warns against conducting online foreign exchange

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The CBK (Central Bank of Kenya) has warned Kenyans against unlicensed foreign exchange dealers operating on online platforms.

“The attention of the Central Bank of Kenya (CBK) has been drawn to the emergence of unlicensed and unregulated online foreign exchange (forex) dealers and platforms.” Said the Central Bank of Kenya

The online foreign exchange dealers have been characterized by;

  1. Have platforms that are downloadable on Google Play Store or Apple App Store and aggressively market themselves on social media and mass emails.
  2. The traders purport to offer the best forex deals in the market.
  3. They collect and receive funds from customers in exchange for foreign or local currencies.
  4. Businesses lack requisite licenses from Central Bank or the Capital Market Authority (CMA)
  5. They lack adequate anti-money laundering and customer protection safeguards.
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It is due to the above that members of the public have been warned from transacting with unlicensed and unregistered online forex dealers.

Also read: Bank of Tanzania freezes exchange of new notes

CBK advise to members of the public

Members of the public have therefore been advised to only deal with genuine and licensed financial institutions and entities.

“The purpose of this notice is to warn members of the public against dealing with unlicensed and unregulated online forex dealers. They should only deal with genuine and licensed financial institutions and entities.” Said CBK

Central Bank of Kenya warns against online foreign exchange
Central Bank of Kenya Governor

Before engaging with such dealers, CBK has advised people to confirm the license status from their official website or CMA website.

All complaints regarding unlicensed forex dealers have been advised be channeled to the Banking Fraud Investigation Unit, through their physical address located at Extelcoms House, Haile Selassie Avenue, Nairobi.

“Complaints regarding unlicensed forex dealers may be forwarded to the Banking Fraud Investigations Unit.”

The news comes at a time when the Central Bank of Kenya has just issued new currency notes which stand the risk of being duplicated.

cases of people being defrauded have been reported recently by members of the public, but no actions have been taken so far.

Berryl Achieng
Kenyan news interests me a lot but I also keep tabs on other news making headlines in Africa and around the world.

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