A report tabled before the US Congress has exposed Kenya’s vulnerability to money laundering, financial fraud and terrorism financing. The vices are perpetuated through the growing use of mobile money transfer platforms, the hawala system of banking and Trade Based Money Laundering. Kenya ranked among major money laundering jurisdictions across the globe, with diaspora remittances to the country totalling to 1.78B USD (Sh178 billion) between January and August 2020 — some of which is suspected to have been proceeds of narcotics trade. Kenya’s efforts to curb illicit financial flaws are supported by the requirement by the Central Bank that all financial transactions above one million be flagged. “Despite the progress, Kenya needs to strengthen implementation of good governance and anti-corruption measures and improve its Anti-Money Laundering and anti-terror financing regime,” warns the report.

Source: Daily Nation March 10, 2021 04:07 UTC