Companies act to stem fraud in capital markets
What you need to know:
- Capital Markets Authority acting chief executive Paul Muthaura said increased collaboration with all stakeholders in the financial and non-financial sectors is crucial in stamping out fraud.
- He said increased collaboration will enhance the turnaround times for capital markets fraud cases especially those forwarded by the Capital Markets Fraud Investigation Unit for prosecution.
- Stakeholders have proposed increased collaboration with related sectors, say, the banking, registrar of persons or companies, the judiciary, and the police.
Stakeholders in the capital markets are enhancing collaboration with the different arms of law enforcement and judicial systems to fight cases of fraud.
Speaking at the investor and stakeholder awareness creation workshop in Nairobi, Capital Markets Authority acting chief executive Paul Muthaura said increased collaboration with all stakeholders in the financial and non-financial sectors is crucial in stamping out fraud.
“This is intended to take this concept to the next level through the recognition and sensitisation of the other institutions that play a critical role in investor protection and the prevention of market abuse,” he said.
He said increased collaboration will enhance the turnaround times for capital markets fraud cases especially those forwarded by the Capital Markets Fraud Investigation Unit for prosecution.
Stakeholders have proposed increased collaboration with related sectors, say, the banking, registrar of persons or companies, the judiciary, and the police.
The banking sector has become more uncooperative in sharing information related to suspicious transactions with other sectors over confidentiality issues.
“Institutions like banks have been rigid especially in sharing information in line with client transactions on the basis of customer confidentiality,” said Central Depository and Settlement Corporation (CDSC) chief manager for operations Florence Kamau.
