Banks to give up 1,600 idle safe deposit boxes

Unclaimed Financial Assets Authority CEO John Mwangi. FILE PHOTO | NMG

By JAMES KARIUKI
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Summary

• Commercial banks will surrender unclaimed assets held in 1,600 safe deposit boxes by year end, providing a glimpse into the monetary value of the secret holdings popular with wealthy individuals.
• The deposit boxes—most of which have not been opened for decades-will be jointly unlocked by bank officials and their counterparts from the Unclaimed Financial Assets Authority(Ufaa).

Commercial banks will surrender unclaimed assets held in 1,600 safe deposit boxes by year end, providing a glimpse into the monetary value of the secret holdings popular with wealthy individuals.

The deposit boxes—most of which have not been opened for decades-will be jointly unlocked by bank officials and their counterparts from the Unclaimed Financial Assets Authority(Ufaa).

“Banks have invited us for the opening of the unclaimed safe boxes and we are keen at the activity that will see us take possession of what qualifies to be unclaimed financial assets from share certificates, jewelry, cash in local and foreign currency as well as mature insurance policies and travellers cheques,” Ufaa chief executive John Mwangi said.

Although neither Ufaa nor the financial institutions know the contents of the safe deposit boxes, it is a global trend for wealthy families to store precious jewellery, share certificates, Treasury bills, company certificates and personal documents such as land title deeds, security certificates, and share certificates in banks.

Mr Mwangi said banks will, however be required to provide evidence of unsuccessful attempts to reach the owners of the safe deposit boxes before their content are taken into Ufaa’s custody.

“Each lender must disclose efforts invested in tracing relatives of the dead or ailing safebox owners as our role is to publicise the information for Kenyans to come forward and claim the same,” he said.

Safety deposit boxes held by banks have been in the radar of the Central Bank of Kenya(CBK) since March 2019 when detectives impounded Sh2billion in fake currency stashed in one of them.

In a circular issued in May last year, the regulator issued a circular requiring each financial institution to verify the contents of the safeboxes as a way of curbing illegal dealings such as money laundering.

CBK said in future banks must subject safe boxes to rules governing illicit financing, known as Anti-Money Laundering and Combating the Financing of Terrorism obligations where all sources of cash is disclosed during banking or withdrawal of large amounts of money