Kenya steps up war on money laundering

MONEY LAUNDERING
Central bank of Kenyan has increased its surveillance on money laundering by the establishment of the financial reporting center. The center will be charged with the responsibility of operationalizing the Proceeds of Crime and Anti-Money Laundering Act.
The immediate operationalization of the financial reporting center was approved by the anti-money laundering advisory board last week and will be based at the ministry of finance and central bank offices with officers being seconded from the two institutions on an interim basis. The financial reporting center established under the Proceeds of Crime and Anti-Money Laundering Act 2009 will as priority operationalize the Act meant to prevent the concealment of large profits from drug trafficking and other organised crime. The centre will also analyze reports on suspicious transactions that may be associated with money laundering activities and forward them to appropriate law enforcing agencies for prosecution where fitting. The center will also be expected to come up with anti-money laundering policies in consultation with the board be fitting others in developed countries such as the US Patriot Act and the UK anti-money laundering & counter terrorist finance policy. The operationalization of the financial reporting center comes more than 2 years after parliament passed the Act after several attempts that faced hurdles from MPs who saw it as a move to reintroduce the anti-terrorism Bill to parliament through the back door. Kenya has been a victim of money laundering in the recent past with the warrants of arrest issued last year on former Finance minister Chris Okemo and former Kenya Power MD Samuel Gichuru for alleged involvement in money-laundering in a small island of Jersey. Transparency international is also on record saying that over 700 billion shillings has been stashed abroad by a number of Kenyans in foreign accounts proceeds from corruption, drugs and other criminal activities. And so as the center comes into place it has its work well cut out.