Family Bank could be placed on receivership after it was involved in corruption scandals that have rocked the government.
The bank went ahead to assure its clients that all was good.
In a letter to the Director of Public Prosecution, CBK governor Dr Patrick Njoroge said prosecution of those involved in money laundering would strengthen the banking sector.
“The prosecution of Family Bank and other related parties involved in non–compliance with reporting is unlikely to have an adverse impact on the bank. On the contrary, it will have a positive effect on the sector and enhance accountability,” he said in the letter.
The Family Bank had been linked with transfer of multi-billion cash from the NYS scandal
