Implementation and Enforcement of the Law on Money Laundering: an Analysis of Kenya’s Legal and Institutional Framework.
Abstract
Prior to 2009, Kenya did not have a formalised Anti- Money Laundering institutional
and legal framework. The criminal and anti- corruption statutes in existence did not
adequately provide for the tracing and confiscation of proceeds of crime from these
crimes. There was a therefore a visible gap and due to the increasing international
pressures and threats of blacklisting from the United Nations, World Bank and the
Financial Action Task Force, Kenya hastily enacted the Proceeds of Crime and Anti-
Money Laundering Act. This thesis examines that effectiveness of this Act and there
frameworks established under the Act. The thesis argues that, though there was a gap
and indeed the efforts to criminalise the crime of money laundering are laudable, the
impact and responsibilities created by the Act are slowly crippling some financial
sectors designated as reporting institutions under the Act in turn rendering the Act
ineffective. The Act introduces onerous and costly compliance requirements which
must be complied with failure of which stiff penalties and personal liability may
accrue to anyone who fails to demonstrate compliance with the Act, such failure is
construed as aiding and abetting the offence of money laundering. The Act is
therefore advocating for preventative controls whilst being silent on how to
effectively and actively enforce the core objectives of the Act which is to trace and
confiscate the proceeds of crime. This thesis therefore highlights the gaps in the
Kenya Anti Money Laundering Framework and proposes some salient
recommendations that could further enhance the effectiveness of the Act and its
regulations. The thesis also conducts a comparative analysis on how Seychelles has
implemented the Anti- Money Laundering legal and Institutional frameworks.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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