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Central Bank of Kenya warns against using unlicensed money transfer services

The Central Bank of Kenya. (Photo: File)

By Anas Mohamed | Wednesday, November 8, 2023

The Central Bank of Kenya (CBK) has issued a stern warning to Kenyans regarding the risks associated with unlicensed Money or Value Transfer Services (MVTS) providers.

The Central Bank of Kenya (CBK) has issued a stern warning to Kenyans regarding the risks associated with unlicensed Money or Value Transfer Services (MVTS) providers. In a bid to safeguard the interests of the public, the CBK emphasised the need for caution when engaging with these unapproved services, as they operate without the necessary authorization from the regulatory body.

Highlighting the potential for significant financial losses and the violation of established legal protocols, the CBK underscored the importance of refraining from utilizing unlicensed MVTS providers. According to the CBK's statement to the media on Monday, an alarming surge in the number of unlicensed MVTS providers has been observed, raising concerns about the safety and reliability of their services.

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The CBK emphasized, "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." In essence, the absence of legal protection leaves users vulnerable to potential financial risks and uncertainties in the event of service disruptions or malpractices.

Seeking the cooperation of the public, the CBK urged individuals to report any pertinent information concerning these unlicensed MVTS providers. The regulatory authority encouraged anonymous reporting, urging individuals to provide details regarding the identity and location of these unlicensed operators.

Moreover, the CBK reassured the public that licensed MVTS providers adhere to regulatory standards, offering a secure and reliable means of financial transactions. Licensed providers display their authorization from the CBK prominently within their business premises, ensuring transparency and accountability in their operations.

In an effort to ensure the safe and secure transfer of funds, the CBK advised individuals to exclusively engage with licensed MVTS providers, thereby minimizing the risk of potential financial losses or fraudulent activities.

Understanding that money or value transfer services involve the transmission of funds through various means to recipients in different locations, the CBK highlighted the essential role played by licensed MVTS providers in facilitating secure and efficient monetary transfers, thereby ensuring the safe delivery of funds to intended recipients.