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How to Apply for Money Remittance License in Kenya

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How to Apply for Money Remittance License in Kenya by Kenyans247(m): Mon Jan 2020 10:23am
Procedure

Apply in Person

Stage 1: Approval of Name
Contact the Central Bank of Kenya at an early stage for preliminary meeting to discuss licensing requirements and related issues.
Propose and reserve at least three business names with the Registrar of Companies that have the words “money remittance” or “money transfer” as a brand name.
Submit the proposed names to the Central Bank in order of priority before incorporation of the company as a company limited by shares.
Stage Two: Application for Licence
Complete and Submit a certified Application Form Application for or renewal of License to transact money remittance business— https://www.centralbank.go.ke/wp-content/uploads/2016/08/The-Money-Remittance-Regulations-2013.pdf Form/CBK /MRB/1 Page 24 to 30 - to CBK accompanied by all supporting documents, including –
(i). A certified copy of the Certificate of Incorporation;
(ii). Certified copy of the tax Personal Identification Number (PIN) certificate;
(iii). Certified copy of the registered Memorandum and Articles of Association indicating paid up capital of at least Kshs 10 million which is expected to increase to Kshs.20m by December 2014;
(iv). Verified official notification of the company’s registered place of business, including the prospective places of business (Head Office, branches, agency and outlets, if any);
(v). Pay a non-refundable application fee of Kshs 20,000 to the Central Bank by bankers’ cheque or RTGS.
Provide evidence of minimum core capital of Kshs.10 million and ability to increase the same to Kshs.20 million by 31st December
Prepare and submit a comprehensive feasibility study and business plan
Complete and submit the `Fit and Proper Forms’ - FORM/CBK/MRB/2 https://www.centralbank.go.ke/images/docs/forms/mfi/FitProperFormSignificantShareholdersMicrofinanceBanks.pdf for all significant shareholders (at least 10% shareholding) and proposed directors accompanied by supporting documentation (certified)

Stage Three: Letter of Intent
Upon assessment and fulfilment all the above requirements in stage two, the Central Bank will issue a Letter of Intent, which is an approval in principle and advise the applicant on the next steps and requirements to be fulfilled before issuance of a licence and approval to commence operations, including –
(i). Payment of licence fee of Kshs 100,000 to the Central Bank by bankers’ cheque or RTGs.
(ii). Obtain a security consisting of either a surety bond, an irrevocable letter of credit from a commercial bank or a microfinance institution or an insurance bond of not less than Kshs.5 million or an amount equal to one percent of the applicant projected total volume of business for the first year of operation.
(iii). Preparations of premises to meet prescribed standards and seek the Central Bank approval/ licence before commencement of operations.
(iv). Preparations of premises to meet prescribed standards and seek the Central Bank approval/ licence before commencement of operations.
(v). Complete and submit the Fit and Proper Forms for key senior officers (FORM /CBK/MRB/2) accompanied by all the supporting documentation,
(vi). Preparing and putting in place management information system and other institutional structures required for conducting the money remittance business
NOTE: The Central Bank shall undertake a due diligence on the management and an assessment on the MIS and internal controls and procedures.

Stage Four: Issuance of Licence
Central Bank, if satisfied that the Applicant has met all the requirements, may issue a licence authorizing the applicant to commence money remittance business.

Required Documents

A certified copy of the Certificate of Incorporation;
Certified copy of the tax Personal Identification Number (PIN) certificate;
Certified copy of the registered Memorandum and Articles of Association indicating paid up capital of at least Kshs 10 million which is expected to increase to Kshs.20m by December 2014;
Verified official notification of the company’s registered place of business, including the prospective places of business (Head Office, branches, agency and outlets, if any);
Pay a non-refundable application fee of Kshs 20,000 to the Central Bank by bankers’ cheque or RTGS.

Office Locations & Contacts

Central Bank of Kenya
Haile Selassie Avenue
P.O Box 60000 – 00200,
Nairobi, Kenya
Tel / Fax: +254 20 286 0000
Phone: +254 20 286 1000, +254 20 286 3000, +254 709 081 000, +254 709 083 000
Email: comms@centralbank.go.ke
Website:CBK Website https://www.centralbank.go.ke/contact-us/

Eligibility

Any person is eligible to make an application to run a Money Remittance Firm in Kenya.
This application allows a person to operate a Money Remittance Firm in Kenya.
In Kenya no person shall, operate a Money Remittance Firm in Kenya unless authorized by the Central Bank of Kenya.

Fees

The name a search and reservation fee of Ksh.1000
Application fee is Ksh. 20,000 for a new licence (fees are in bankers cheque payable to the Central Bank of Kenya);
The licence fee of Ksh. 100,000

Validity

The validity period is one year.
A licence issued under this section shall, unless earlier revoked, expire on the 31st December next following the date of issue:

Documents to Use

– APPLICATION FOR OR RENEWAL OF LICENCE TO TRANSACT MONEY REMITTANCE BUSINESS—FORM/CBK /MRB/1-Page 24-30
Fit and Proper Forms for Significant Shareholders - FORM/CBK/MRB/2
https://www.centralbank.go.ke/wp-content/uploads/2016/08/The-Money-Remittance-Regulations-2013.pdf
https://www.centralbank.go.ke/images/docs/forms/mfi/FitProperFormSignificantShareholdersMicrofinanceBanks.pdf

Processing Time

The processing time is 120 days.

Instructions

For issuance of a license, please submit the duly completed form, to the CBK
ii. For purposes of application for a new license, an applicant is required first to seek approval name from the Central Bank of Kenya and thereafter will be advised on the documents to be submitted together with the duly completed form.
iii. Upon satisfying all the requirements and paying the applicable licensing fees the applicant will be issued with a license.
iv. All information provided shall be treated as confidential.

Required Information

Name of applicant
Head/ Main office
Physical and postal address of head office/ proposed new outlet
Date of incorporation
Form of incorporation
Description of the applicants business or functions
Certificate of incorporation Number
Details of subsidiaries and affiliates (Name of Outlet, County, City/Town, Street, Building, Date opened)
Particulars of shareholders (Name, Nationality, Date of acquisition, Amount of shareholding, % of shareholding)
Particulars of directors (Name, Nationality, Date of appointment, Level of education)
Particulars of the officers in the order of seniority (Name, Designation, Nationality, Date of appointment)
Ownership profiles
Shareholding in any other financial institution
Name of applicants external auditors
Declaration

Need for the Document

This license allows the holders to operate a Money Remittance Firm in Kenya.
A person who operates Money Remittance Firm without a valid license commits an offence and shall, on conviction be liable to a fine not exceeding five hundred thousand shillings, or to imprisonment for term not exceeding three years, or to both.

Information which might help

The Money Remittance Firm shall be body corporate with perpetual succession and a common seal, with power to acquire, own, possess and dispose of property, to contract, and to sue and to be sued in its own name.

External Links

The Central Bank of Kenya Act https://centralbank.go.ke/images/docs/The_Central_Bank_of_Kenya_Act_1st_January_2014.pdf
THE MONEY REMITTANCE REGULATIONS, 2012 rel=nofollow>https://www.centralbank.go.ke/images/docs/legislation/draft-money-laundering-regulations.pdf

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