ADVOKS GLOBAL · KENYA
The Central Bank of Kenya (Mortgage Refinance Companies) Regulations, 2019
25. Reckless and fraudulent activities
Edition: 2022-12-31 · In force
25. Reckless and fraudulent activities
(1)A mortgage refinance company shall not—(a)allow a credit facility or guarantee to be outstanding;(c)enter into any contract or transaction; or(d)conduct its business or part thereof,in a fraudulent or reckless manner that is detrimental to the interest of the company, its customers or the general public.(2)In this regulation—"reckless" means—(a)transacting the business beyond the limits set under the Act;(b)offering facilities contrary to any guidelines or regulations issued by the Central Bank;(c)failing to observe the mortgage refinance company's policies as approved by the board of directors; or(d)misuse of position or facilities of the mortgage refinance company for personal gain;"fraudulent" means intentional deception, false and material misrepresentation, concealment or non-disclosure of a material fact or misleading conduct, device or contrivance that results in loss and injury to the mortgage refinance company with an intended gain to the officer of the mortgage refinance company or to a customer of the mortgage refinance company.