Guest Contributor | Jan 17, 2023 | 0
Agribank to suspend cash payments
Agricultural bank, Agribank this week announced that it will no longer accept cash payments as of 1 December.
The bank will only accept payment through electronic transfer, deposits at commercial banks, and point of sale at the branches, Agribanks spokesperson, Fillemon Nangonya said in a statement.
“This decision to discontinue cash payments at Agribank branches is in line with the bank’s strategy to effectively manage the security risk facing the bank’s employees that are responsible for receiving and handling cash payments across all eight branches of the bank,” he said.
Additionally, this change is an effort by Agribank to further contribute to the combating of money laundering in the country, he said.
“Money laundering is regulated in terms of the Financial Intelligence Act, with specific reference to knowing your customer requirements. This requires stringent verification of the source of cash funds and reporting thereon,” he said.
Meanwhile, Nangonya said Agribank is a non-deposit-taking financial institution that does not provide banking services like commercial banks.
“Agribank’s business is solely based on advancing loans to individuals, business entities, or financial intermediaries for the promotion and development of agriculture and related activities in the country. This implies that the bank has limited cash-handling facilities and does not charge clients for cash deposits. At the same time, the bank continues to bear the costs when depositing cash in its own bank accounts at commercial banks,” he explained.