UK Pledges Support to Help Kenya Combat ‘Wash Wash’ Cartels and Exit Financial Grey List
The United Kingdom has pledged support for Kenya’s fight against the growing ‘wash wash’ cartels.
In a statement shared on X social media, the British High Commission in Kenya revealed plans to assist the country in escaping the feared international financial grey list. Managed by the Financial Action Task Force (FATF), the grey list highlights countries with deficiencies in financial regulation.
Kenya was placed on the grey list in February this year due to shortcomings in addressing money laundering, terrorist financing, and the proliferation of illegal financing.
The FATF serves as the global authority on anti-money laundering (AML) and counter-terrorism financing standards.
Following an evaluation of Kenya’s compliance with international standards for combating money laundering and related financial crimes, the FATF identified significant gaps, resulting in the country’s greylisting.
Money laundering, or ‘wash wash,’ remains a major concern. The Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) report, which monitors the region’s implementation of global anti-illicit fund measures, showed that Kenya received a suspicious Ksh 72.2 billion in cash from 2017 to 2021, with unclear sources for this money.
On November 29, the UK announced it would continue offering Kenya technical assistance and collaborating to enforce FATF standards, further supporting Kenya’s economic growth.
The British High Commission emphasized that addressing money laundering and terrorism financing is crucial for preserving democracy and fostering economic growth. The UK is fulfilling its commitment to assist Kenya in adopting FATF standards.
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This support comes after Kenya reached out to international partners, including the EU, UK, and US, for help in enhancing technical capabilities to tackle these complex issues.
Njuguna Ndung’u, Kenya’s former Treasury CS, stated in February 2024 that collaboration with these partners is vital to improving Kenya’s AML/CFT/CPF framework, strengthening regulatory bodies, and accelerating its removal from the grey list.
On November 28, the UNODC East Africa launched a UK-funded project designed to bolster Kenya’s AML/CFT framework, aiming to help the country exit the FATF grey list.
The UK-funded initiative to strengthen Kenya’s anti-money laundering framework and help it exit the FATF grey list was officially launched, according to the UNODC.
Kenya’s inclusion on the grey list was attributed to its failure to prosecute money laundering and terrorism financing crimes, lack of regulations for cryptocurrencies and nonprofit organizations, and an inadequate risk-based approach to anti-money laundering and counter-terrorism financing.
Kenya is now listed alongside other countries like Tanzania, South Sudan, Nigeria, South Africa, Mali, Mozambique, Senegal, Burkina Faso, and Cameroon.
UK Pledges Support to Help Kenya Combat ‘Wash Wash’ Cartels and Exit Financial Grey List
