News
US queries delays in law to fight crime
A currency dealer counts Kenya shillings at a money exchange counter in Nairobi. The US has questioned the delay in setting a commencement date for an anti-money laundering law passed by Parliament last year. Photo/File
Posted Wednesday, March 3 2010 at 21:18
The US has questioned the delay in setting a commencement date for an anti-money laundering law passed by Parliament last year.
The legislation is said to be crucial in the war against piracy, drug trafficking and terrorism in the country.
According to the latest US State Department International Narcotics Control Strategy report on money laundering and financial crimes, although Parliament passed the Proceeds of Crime and Anti-Money Laundering Act, which was subsequently signed by the President, no commencement date has been set by the Finance minister.
The anti-money laundering law introduces measures providing for the identification, tracing, freezing, seizure and confiscation of proceeds of crime.
The new law requires financial institutions, other businesses and professions, including casinos, real estate agencies, precious metal and stone dealers, and accountants, to file reports on suspicious transactions.
Section 45 of the new law requires institutions to monitor all transactions, pay attention to any unusual patterns and report those that are suspicious.
Under the anti-money laundering law, the institutions must file reports of all cash transactions exceeding the equivalent of $10,000 or Sh700,000 in any currency.
The law defines proceeds of crime as any property or economic advantage derived or realised, directly or indirectly, as a result of or in connection with an offence.
The legislation provides for criminal and civil restraint, seizure and forfeiture. In addition, the new law authorises the establishment of a Financial Intelligence Unit, which is crucial in tracing proceeds of crime.
Take advantage
The US report says lack of an anti-money laundering law in Kenya has turned it into a haven for international drug traffickers, terrorists and pirates, who take advantage of the current situation to launder billions of shillings through the country.
It says money laundering from piracy along the Somali coast and drug trafficking had increased tremendously.
Kenya’s financial system is estimated to be laundering $100 million or more than Sh7 billion annually, according to the report.
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Submitted by crmstpr357Posted March 04, 2010 08:52 PM
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Submitted by Isaya Baraza
The US themselves have delayed to pass the HealthCare bill, why point a finger to Kenya.Everywhere in the whole world politics takes lead.
Posted March 04, 2010 06:15 PM -
Submitted by lukongodo
You are on the money..no pun intended..on this one!
Posted March 04, 2010 09:26 AM -
Submitted by ndotonoyao
As usual, the legal geniuses left out the commencement date..... possibly they were paid to leave that out deliberately. Eastleigh is a lawless territory! Thanks to those whose pockets are lined with maintenance cash. The UNDCCP's mandate involves seizeing property and cash believed to be proceeds of criminal activities including human/drug trafficking, piracy and terrorism.
Posted March 04, 2010 09:04 AM -
Submitted by leenex
You are right MichaOlga, the 56 billion proceeds from Anglo Leasing projects will take a while to put through the system! Dom you think the Triton money is now done with?
Posted March 04, 2010 07:59 AM
RSS
MichaOlga is probably correct! I'll bet there are a few politicians who are involved with the auto import business as well-- which is why I can't ship my well maintained, left-hand drive vehicle into Kenya. It is in better shape than 90% of the vehicles on Kenyan "roads", but it is too old and unsafe? HAH!