Targeting “Wash Wash” Operators: Cabinet’s Anti-Money Laundering Bill 2023

Targeting “Wash Wash” Operators: Cabinet’s Anti-Money Laundering Bill 2023

On Friday, July 7, the Cabinet approved the Anti-Money Laundering and Combating the Financing of Terrorism (Amendment) Bill 2023 and referred it to Parliament for debate.

The amendment, according to State House Spokesman Hussein Mohamed, will help the government combat money laundering and strengthen Kenya’s financial integrity.

Part of the statement read, “As a progressive member of the Community of Nations, Kenya recognizes that money laundering poses a significant threat to the integrity of the financial system and the country’s overall security.”

The proposed amendments establish several measures to detect and prevent money laundering in Kenya. These include monitoring and enforcing terrorism financing, reporting suspicious transactions, ensuring beneficial ownership transparency, and preventing terrorism financing.

Among the advantages of the new legislation are enhanced customer due diligence, strengthened reporting requirements, expanded scope and coverage, and increased penalties and disincentives.

According to the bill, financial institutions and certain non-financial businesses will be required to conduct comprehensive customer verification.

This is anticipated to reduce the risk of anonymous transactions and increase the transparency of financial transactions.

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All suspicious transactions and activities will be reported to the Financial Reporting Centre (FRC) so that investigations can be launched in conjunction with the relevant security enforcement agencies.

In the new legislation, money laundering offenses will encompass a broader range of activities, including proceeds from domestic and international criminal activities and financing of terrorism.

In addition, the bill will limit emerging digital and cryptocurrency threats. The amendments impose harsher punishments on individuals and organizations committing money laundering offenses.

This includes increased fines and longer prison terms, which are believed to be effective deterrents against illegal financial activities.

Parts of the statement read, “Kenya aims to preserve its global competitiveness, foster the growth of its economy by attracting ethical foreign investment, and increase financial system transparency.”

The new regulations are consistent with the global standards established by the Financial Action Task Force (FATF), an intergovernmental organization with the mandate to establish global standards to promote the effective implementation of legal, regulatory, and operational measures in combating the three transnational vices of money laundering, terrorism financing, and financing for weapons of mass destruction.

Targeting “Wash Wash” Operators: Cabinet’s Anti-Money Laundering Bill 2023

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