Noose tightens around money laundering

By James Anyanzwa

Companies with nominee shareholders have been blacklisted as ‘high risk’ with regard to money laundering activities.

Non-resident customers, politically exposed persons and companies related to them as well as customers from locations known for high crime rates will also face thorough vetting before being allowed to open accounts or trade in securities.

The latest are part of the new guidelines meant to prevent, detect, report and control money laundering. According to the draft guidelines, all customers shall be subjected to a full range of due diligence to determine risks attached to them and their business relationship.

In April this year the Anti-Money Laundering Advisory Board (AML Advisory Board) chaired by John Wanyela approved the immediate operationalisation of the Financial Reporting Centre (FRC).

The objective of the FRC is to help identify proceeds of crime and combating money laundering.

• .

  Keep Reading

• 
  Tribes should talk often, it's an eye-opener
• 
  Why lions invade Rongai despite plenty of food
• 
  Kenya feeling marathon hero Kiptum's loss as Olympics near
• 
  Trade CS Miano says Buy Kenya-Build Kenya aims to promote local products

The centre will operationalise the Proceeds of Crime and Anti-Money Laundering Act and receive and analyse reports of suspicious transactions that may be associated with money laundering and forward them to appropriate law enforcement authorities for appropriate action including prosecution.

Kenya recently joined its other East African Community (EAC) members in their efforts against money laundering by enacting a legislation that is meant to go along way in curbing the vice.