Financial Crime World

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Kenya’s Struggle to Combat Money Laundering: A Review of the Legal Framework

In an effort to combat money laundering, Kenya has established a legal framework aimed at recovering assets linked to criminal activities. However, experts argue that the country’s efforts are hindered by several challenges, including difficulties in proving criminality and the need for more effective prosecution strategies.

The Importance of Indirect Evidence

A recent study published in the Journal of Money Laundering Control highlights the importance of indirect or circumstantial evidence in money laundering cases. The authors note that while direct evidence may be difficult to obtain, a logical interpretation of relevant facts and circumstances can still establish the existence of criminal proceeds.

In Kenya, the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA) provides for the forfeiture of assets linked to criminal activities. However, critics argue that the law’s provisions are often too narrow, failing to provide sufficient grounds for the seizure of assets.

Challenges in Asset Seizure

A recent case in which a property was seized by authorities highlights the challenges faced by those seeking to protect their interests in targeted assets. In this instance, the court ordered the seizure of the property on the basis that it had been used or intended for use in the commission of an offence.

Protecting Interests in Targeted Assets

Experts argue that the law should provide more protection for affected parties, allowing them to file applications seeking to protect their interests in targeted assets. The Kenya Gazette is an official publication of the Government of Kenya and provides guidance on the procedures for filing such applications.

Combating Money Laundering: A Way Forward

Despite these challenges, Kenya’s efforts to combat money laundering are seen as a step in the right direction. Experts argue that a more effective prosecution strategy would involve a combination of criminal and civil proceedings, with a focus on recovering assets linked to criminal activities.

Conclusion

In conclusion, while Kenya’s legal framework aimed at combating money laundering is commendable, there are several challenges that need to be addressed. A review of the law’s provisions is necessary to ensure that it provides sufficient grounds for the seizure of assets and adequate protection for affected parties. Ultimately, a more effective prosecution strategy would involve a combination of criminal and civil proceedings, with a focus on recovering assets linked to criminal activities.

Sources

  • Juta Publishers (2013)
  • Journal of Money Laundering Control
  • Stanford Law & Policy Review
  • Oxford Handbook of International Human Rights Law
  • Private Law and Human Rights Bringing Rights Home in Scotland and South Africa

Note

The article is based on a review of academic articles, court cases, and official publications related to money laundering and asset recovery in Kenya. The views expressed are those of the author and do not necessarily reflect the opinions of any organization or institution.