Dr. Chris Kiptoo, Treasury Principal Secretary, revealed on Tuesday that the Kenyan government will implement measures to combat money laundering in the country.
This comes after Kenya was mentioned as one of the countries lagging behind in preventing the flow of illicit funds.
Speaking at a conference in Diani, Kwale County, which drew delegates from across the region, Kiptoo stated that the Treasury had already identified the challenges facing the measures put in place to combat the vice.
Kiptoo stated that money laundering is a major threat to the African continent, citing intelligence reports of terror groups profiting from money laundering proceeds, posing complex security risks to the continent.
The Finance Action Task Force (FATF), a global anti-money laundering watchdog, placed Kenya on the grey list in August 2023.
This move was viewed as likely to harm Kenya’s reputation as the region’s financial powerhouse.
The negative listing meant that Kenya would be subjected to stricter due diligence when dealing with the rest of the world, particularly when acquiring debt, with far-reaching consequences for the economy.
The country’s common practice of using fake gold has previously presented a complex security situation to Kenya’s investigative agencies, as well as damaged diplomatic ties with other countries whose citizens have become victims.
Mohamed Amin, the Director of Criminal Investigations, revealed in June of this year that some of the fake gold dealers have relocated from Kenya to neighboring countries, where they are currently operating.
He also stated that some of the suspects in money laundering cases are from mineral-producing countries, and they use Kenya as a transit point.
“We have managed to downgrade successfully the activities of these gold scammers in Kenya so much that they have now relocated to some of our neighboring countries,” Amin noted.
“Out of 71 reported cases we have identified and prosecuted 64 people.
Amin continued; “Some Kenyans and others are foreigners. In our investigations, we received help from the FBI in the recovery of proceeds of crime and area of social media.”
During his visit to Kenya on June 14, 2024, Federal Bureau of Investigations Director Christopher Wray revealed that the FBI was also concerned about Kenya’s wash-wash problem.
Wray assured that the agency would continue to assist investigators in combating the crime.
“It is also a fact that the wash wash business has become one of the most prevalent transnational crimes, more often than not being orchestrated by non-Kenyans in the initial stages.
Kenya, and most specifically its capital, Nairobi,” Wray told the media at the time.
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