Raise firewalls to curb laundering
By Editorial.Team, August 4, 2023Kenya must quickly raise firewalls and consider regular risk assessments to identify vulnerabilities in the financial system and those sectors susceptible to money laundering.
For a country considered the financial hub of East Africa, recent damning reports of massive movement of hard cash into Kenya raises fundamental questions about the country’s preparedness in the fight against money laundering.
This is after the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) issued a critical assessment of Kenya’s anti-money laundering measures.
ESAAMLG says Kenya received some Sh72 billion in the four years leading up to 2021, however, the cash influx was not adequately explained to the relevant authorities.
It is therefore a welcome move that the government is proposing amendments to the Anti-Money Laundering and Combating of Terrorism Financing Law to tighten penalties for individuals moving large undeclared cash volumes through the country.
To deter crimes such as money laundering and the financing of terrorism, which often involves large cash transactions, it requires continuous efforts and adaptability to changing trends and tactics used by criminals.
It also requires a collaborative and holistic approach involving various stakeholders to effectively prevent and combat money laundering, however, the state must make life difficult for these criminals by increasing penalties.
By imposing stiffer penalties for those involved in undeclared large cash transactions, the government creates a deterrent effect and protects the country’s financial system from abuse by criminals and terrorists.
The amendments will also extend the application of preventative and enforcement measures to combat terrorism financing and financing of the proliferation of weapons of mass destruction.
It is important that these amendments address the most vulnerable sub-sectors, including real estate, virtual assets, and legal professionals, through a sector risk-based assessment approach.
Going forward, the government must also start raising public awareness about the risks and consequences of money laundering.