Financial Crimes Definition in Kenya: A New Era of Transparency
The Kenyan government has introduced a new definition of financial crimes aimed at combating these illegal activities, promoting transparency, and enhancing accountability. This article outlines the key aspects of the definition and its implications for businesses operating in Kenya.
What are Financial Crimes?
According to the Anti-Bribery Act, financial crimes refer to any act or omission intended to influence a public official or induce them to perform an official function. These crimes include:
- Bribery: giving, promising, or offering an advantage to another person with the intention of influencing their conduct as a public official or inducing them to perform an official function.
- Corruption: any act or omission that is intended to influence a public official or induce them to perform an official function in a way that is contrary to the laws of Kenya.
- Economic crime: any act or omission that is intended to cause financial loss to another person or organization.
Definitions under the Act
The Anti-Bribery Act provides specific definitions for key terms, including:
- Corruption: any act or omission that is intended to influence a public official or induce them to perform an official function in a way that is contrary to the laws of Kenya.
- Economic crime: any act or omission that is intended to cause financial loss to another person or organization.
- Foreign public officials: persons holding legislative, administrative, or judicial offices of a foreign country, whether appointed or elected. This includes international civil servants and other persons authorized by an international organization to act on its behalf.
Private Entities
The Act defines private entities as any person or organization that is not a public entity, including:
- Voluntary organizations
- Charitable organizations
- Faith-based organizations
- Community-based organizations
- Companies
- Partnerships
- Clubs
- Any other body or organization
Business and Property
The Act also provides definitions for business and property, including:
- Business: including trade or profession.
- Property: all forms of real or personal property, heritable or moveable things in actions and other intangible and incorporeal property.
Implications for Businesses
The new definition of financial crimes has significant implications for businesses operating in Kenya, particularly those that engage with the government or public officials. Companies must ensure they comply with the new definition and avoid any activities that may be considered corrupt or illegal.
Conclusion
The new definition of financial crimes in Kenya is a major step towards promoting transparency and accountability in the country’s public sector. The Act provides a framework for law enforcement agencies and prosecutors to effectively combat financial crimes and promote a culture of integrity and transparency in the public sector.