The Central Bank of Kenya (CBK) has issued a stern warning against engaging with entities and individuals that offer money or value transfer services without obtaining the necessary license or authorization from the CBK.
This advisory comes in response to reports of several entities and individuals conducting money or value transfer services without the required license, raising concerns over the legality and safety of such transactions.
Money or value transfer services encompass a wide range of financial activities, including payment services regulated under the National Payment Systems Act of 2011 and money remittance services governed by the Money Remittances Regulations of 2013.
The CBK emphasizes that providing money or value transfer services without the proper license or authorization is a criminal offense in Kenya. Such unlicensed services are not protected by the law, and consumers may be at risk in the event of any default by these service providers.
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“It is criminal offense to provide money or value transfer services without a license or authorization from the Central Bank of Kenya. Such services do not enjoy the protection of the law and consumers stand to lose in case of any default by the providers of these services,” said CBK in a statement.
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The CBK, through its supervision department, underlines the importance of verifying the legitimacy of any entity offering money or value transfer services. Licensed entities, acting as payment service providers or money remittance providers, should prominently display their CBK license authorization in their business premises for public reference.
