KENYA GOVERNMENT CRACKS DOWN ON MONEY LAUNDERING

Tough Penalties for Violators of Anti-Money Laundering Act

The Kenyan government has intensified efforts to combat money laundering and terrorist financing by introducing harsh penalties for individuals and corporate bodies that contravene the Anti-Money Laundering Act.

Penalties for Non-Compliance

• According to Section 10 of the Act, any person who contravenes the provisions of the law shall be liable to a fine not exceeding Sh500 million or an amount equivalent to three times the market value of the property, whichever is greater.
• Individuals may face imprisonment for up to ten years, while corporate bodies may be fined up to Sh1 billion.

Corporate Bodies Held Accountable

Section 14 of the Act holds corporate bodies and associations of persons accountable for money laundering offences. Key provisions include:

• Every person who, at the time of the commission of the offence, was a director, manager, controller, or partner, or concerned in the management of the body’s affairs, may be convicted of the offence.
• A director, manager, controller, partner, or person concerned in the management of a body corporate or association may be convicted for an offence under subsection (1) notwithstanding that the body corporate or association has not been convicted of the offence.

Reporting Persons Required to Verify Customer Identity

Section 15 of the Act requires reporting persons, such as banks and financial institutions, to take reasonable measures to satisfy themselves about the true identity of any applicant seeking to enter into a business relationship or carry out a transaction. This includes:

• Requiring applicants to produce official records reasonably capable of establishing their true identity.
• Conducting enhanced ongoing monitoring of business relationships with politically exposed persons, which include:
  • Individuals who hold public office
  • Have held such an office in the past three years
  • Are close relatives of such individuals

Government Commitment to Combat Money Laundering

The Kenyan government has committed to combating money laundering and terrorist financing, and has put in place measures to ensure that financial institutions and other reporting persons comply with the Act.

“We are serious about combating money laundering and terrorist financing, and will not tolerate any violations of the Anti-Money Laundering Act,” said a government spokesperson. “We urge all financial institutions and other reporting persons to comply with the Act and report any suspicious transactions to the authorities.”

The penalties for violating the Act are severe, and we encourage anyone who has information about money laundering or terrorist financing to come forward and report it to the authorities. We will not hesitate to take action against anyone found guilty of these crimes.