The Central Bank of Kenya (CBK) tasked the Kenya Deposit Insurance Corporation with liquidating the Charterhouse Bank (CHB), 15 years after it was placed under statutory management following complaints of money laundering.
“Due to the bank’s serious violations of banking law and its inability to remedy them, liquidation is the only possible option,” the issuing institute said in a statement released Friday (May 7th).
The central bank assessed the recommendation and found that the liquidation would facilitate the orderly resolution of CHB’s assets and liabilities. This is in accordance with the laws of Kenya, in order to protect the interests of CHB’s depositors, its creditors, other stakeholders and the public interest at large.
As a reminder, on June 23, 2006, CBK placed CHB under statutory management under Article 34 of the Banking Law. This followed serious violations of banking law regarding loans, the accuracy of statements submitted to the CBK and failure to obtain account opening documents for many clients.
CHB was established in 1996 after taking over the operations of Middle East Kenya Finance Limited. Subsequently, the institution became a fully-fledged bank in 1998.
