Security experts raise alarm over money crimes

By Fredrick Obura

Money laundering and terrorism financing are the two biggest threats facing financial institutions in Africa.

Cyber Security Africa, a UK-based information and e-commerce security provider, says banks and other money-transfer service providers are investing huge sums of money and personnel to counter these crimes, but they continue to pose legal and financial challenges to them.

 “Firms today understand the need for a company-wide anti-money laundering culture, one that can adapt to the changing external environment,” said Sammy Kioki, the African Alliance Manager for Cyber Security Africa.

“People play an important part in that culture. Each member of staff, regardless of position, has a role to play in safeguarding the reputation of the firm and minimising the financial risk caused by money laundering.”

Mr Kioko was speaking on Friday evening in Nairobi at a press conference to announce a three-day conference on “Combating Financial Crime in East Africa” to be held in Kigali, Rwanda, on September 26 to 28, at Serena Hotel.

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Money laundering

He said financial institutions should ensure their employees have the necessary knowledge and skills to protect the organisations from these vices. “Through training, staff can achieve and understanding of the importance of money laundering prevention, the part they play and the best practice. This will be cheaper in the long run than dealing with the repercussions,” he said.

He said the regional conference – organised by Cyber Security Africa and sponsored by Technology Company IBM, security training firm Eacademy Group and other stakeholders – will provide solutions for countering money laundering and terrorism financing and their related implications on economies and financial systems.

The workshop will include a two-day training on anti-money laundering and counter-terrorism financing on September 27 and 28.

Some of the key issues to be addressed will include: adopting the latest best practices to protect your organisation from fraud, understanding changes in the money service business regulatory landscape to ensure compliance, mastering anti-money laundering audits to meet institutional needs and satisfy regulators, among others.