The Bank of Tanzania (equivalent to Kenya’s Central Bank) has frozen exchange of Kenyan bank notes with immediate effect.
Through a letter addressed to all financial institutions on Friday, 7th June, 2019, the bank states that, ‘… with a view to combat illicit financial flows and counterfeits into the Republic of Kenya…the Bank of Tanzania has been advised to freeze CBK Currency Collection Account with immediate effect.’
Tanzanians who wish to convert Kenyan currency can do so in Kenya.
Below is the full statement:
RE: NEW SERIES OF KENYA BANKNOTES AND SUSPENSION OF CURRENCY CONVERSION AND REPATRIATION
Reference is made to the captioned subject.
The Bank of Tanzania has been informed by the Central Bank of Kenya (CBK) of the issuance of the new series of banknotes effective 31st May 2019, with a view to combat illicit financial flows and counterfeits into the Republic of Kenya.
Consequently, CBK has suspended currency conversion and repatriation of all Kenyan currency to restrict illicit flows into the Republic of Kenya, and will not accept Kenyan currency with immediate effect.
Further, the Bank of Tanzania has been advised to freeze CBK Currency Collection Account with immediate effect.
Given the gravity of illicit flows concerns raised by CBK, you are required to subject all flows from and into the Republic of Kenya to enhanced due diligence.
BANK OF TANZANIA,
Directorate of Financial Sector Supervision
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