Written By Lisa Murimi
Treasury Principal Secretary Dr. Chris Kiptoo announced on Tuesday that the Kenyan government will implement new measures to combat money laundering, following concerns that the country is lagging in curbing the flow of illicit funds.Â
Speaking at a regional conference in Diani, Kwale County, Kiptoo acknowledged the challenges in existing anti-money laundering efforts and emphasised the threat posed by these activities to Africa’s security.
Kiptoo highlighted the link between money laundering and the funding of terror groups, which exacerbates security risks across the continent.
He noted that several countries in Eastern and Southern Africa, including Kenya, are on the grey list of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), indicating serious deficiencies in their anti-money laundering regimes.
Kenya’s placement on the Financial Action Task Force’s (FATF) grey list in August 2023 has raised concerns about the country’s financial reputation, potentially leading to stricter international scrutiny and economic consequences.
The issue is further complicated by the prevalence of fraudulent gold trading, which has strained diplomatic relations and posed challenges to Kenya’s investigative agencies.
Director of Criminal Investigations Mohamed Amin reported that some gold scammers have relocated to neighbouring countries, while Kenya has successfully prosecuted 64 individuals involved in these crimes.
The U.S. Federal Bureau of Investigations (FBI) has expressed concern over money laundering in Kenya and has pledged continued support in combating the crime.
