EU flags Kenya for money laundering, terrorism financing

Kenyan currency in notes. [Wilberforce Okwiri, Standard]

Kenya has been added to the list of countries with high risk for money laundering and terror financing by the European Union.

In a statement, the EU noted that the move is important in protecting its financial systems.

“The European Commission has updated its list of high-risk jurisdictions presenting strategic deficiencies in their national anti-money laundering and countering the financing of terrorism (AML/CFT) regimes. EU entities covered by the AML framework are required to apply enhanced vigilance in transactions involving these countries. This is important to protect the EU financial system,” read the statement.

Others added to the list include Algeria, Angola, Côte d'Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal, and Venezuela.

The EU has, however, delisted other States, including Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, Uganda, and the United Arab Emirates.

This is not the first time the country is on the spot for money laundering.

In 2021, Kenya was ranked among several countries, including Morocco, Nigeria, Ghana, and Benin, where money laundering, terror financing, and financial fraud are rife.

A report on the International Narcotics Control Strategy tabled before the US Congress noted that Kenya remains vulnerable to money laundering in both formal and informal sectors.

The report further noted that Kenya’s vulnerable banking system, wire services, mobile money platforms, and an unregulated mobile lending industry were at the heart of the laundering schemes, recommending the implementation of good governance and anti-corruption measures to address the vice.