amily Bank Limited has been cleared in the Sh1.6 billion National Youth Service money laundering case after reaching a settlement with the Director of Public Prosecution Noordin Haji.
Nairobi Chief Magistrate Francis Andayi removed the name of the bank from charges filed against it and its former employees after the bank settled the matter as per an agreement reached between it and the DPP
Lawyers for the bank Waweru Gatonye and Cecil Miller told the magistrate that the bank has complied with all the conditions agreed upon with the DPP.
A deputy DPP Ms Dorcas Oduor confirmed to Mr Andayi that the bank has complied with the terms of removal from the case and therefore it should be cleared from blame.
“I am not opposed the matter against the bank being marked as settled,” Ms Oduor told the court.
Another defence lawyer Ms Pauline Kiteng’e urged the court to free some former employees of the bank since their employer has been vindicated following the out of court settlement of the case.
But Ms Oduor opposed. She said, “A bank is an entity which carries out its operations through its appointed agents who are required to observe the banking rules.”
She said the agents of the bank who were charged alongside the financial institution will have to answer for their actions.
Ms Oduor challenged Ms Kiteng’e and other defence lawyers to make a formal application on the issue which she said the DPP will respond accordingly.
The bank pleaded guilty to six counts, including failure to comply with its reporting obligations to report unusual transactions, then paid a fine from which Sh24,500,000 will go to NYS while the rest Sh40million will be paid to the Sports ministry.
Mr Andayi who entered the judgement as requested by the bank directed that in the event it fails to pays the government will attach its property to sell it by way of public auction.