Stakeholders in the capital markets are making all out efforts to enhance collaboration with the different arms of law enforcement and judicial systems to fight cases of fraud.Paul Muthaura, Capital Markets Authority acting chief executive, who was speaking at the investor and stakeholder awareness creation workshop in Nairobi, said that increased collaboration with all stakeholders in the financial and non-financial sectors is absolutely essential in stamping out fraud.
He added that the action is intended to take the concept to the next level through recognition and sensitisation of the other institutions that play a vital role in investor protection and the prevention of market abuse.
He also said that increased collaboration will improve the turnaround times for capital markets fraud cases, particularly those forwarded by the the Capital Markets Fraud Investigation Unit for prosecution.
Stakeholders have sought increased collaboration and cooperation with related sectors, such as the banking, registrar of persons or companies, the judiciary, and the police.
The banking sector has maintained a rigid and uncooperative stance in sharing information related to suspicious transactions with other sectors over confidentiality issues. The Central Depository and Settlement Corporation (CDSC) chief manager for operations, Florence Kamau, said that institutions like banks have been rigid especially in sharing information in line with client transactions on the basis of customer confidentiality