Benard Gitau @benagitau
The government will amend the Proceeds of Crime and Anti-Money Laundering Act to address issues of financial integrity.
National Treasury Cabinet secretary Henry Rotich, while presenting the 2018/19 budget statement in Parliament yesterday, said the move will address money laundering and terrorism financing.
“The amendment will help seal the gaps in the Act and address the risks associated with non-face-to-face businesses and transactions,” he said.
Kenya, he said, has made significant steps towards improving its anti-money laundering measures and abiding by global standards on anti-money laundering and financing of terrorism.
The proposal is aimed at addressing the recent situation where billions of shillings looted at National Youth Service (NYS) were deposited and withdrawn in banks illegally.
At NYS, it is claimed a total of Sh9 billion was looted with suspects including Anne Ngirita allegedly receiving Sh60 million for supplying ‘air’. Some banks and saccos are on the spot for allowing the depositing and withdrawal of huge amounts of money without following the laid down procedures from Central Bank.
Rotich proposed to include the Sacco Societies Regulatory Authority (SASRA) to be one of the supervisory bodies under the Act.
“This will give the authority a legal platform to monitor the compliance of Deposit-taking Saccos in respect to prevention of money laundering and combating the financing of terrorism,” he added.