Shore up the financial reporting in terror w*r

Though a lot still needs to be done, Kenya has substantially strengthened the anti-money laundering and countering of terrorism financing framework.

The measures not only tighten the noose on launderers and terrorists but also foster efficiency and speed of investigations and enhance inter-agency information sharing.

They include legal reforms and enacting several laws that allow the authorities, among other things, to freeze all the assets and funds of terror suspects, even those not tied to a particular terrorist act or threat.

The regulations, partly due to the organised and complex nature of some of these crimes, also required that people or organizations suspected to have committed or attempted to commit a terrorist act, commonly referred to as special entities, are not granted visas under the Kenya Citizenship and Immigration Act, unless directed by the Interior Cabinet Secretary.

Key among the laws is the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Act, 2023, which was passed and came into force on September 15 last year.

Another boost had come in August of the same year, when the Law Society of Kenya agreed to report suspicious transactions made by their clients to the Financial Reporting Centre (FRC), thus becoming a reporting entity.

The decision by the Office of the Director of Public Prosecutions that parallel financial investigations be initiated in all cases that generate proceeds of crime also helps fight the vice.

Prosecutors are now expected to promptly make the necessary applications in court to preserve the value of the assets or property in consultation with investigators or other law enforcement agencies, especially where the assets have been obtained as a consequence of the commission of the offence.

But the FRC should be strengthened further if it is to effectively perform its key mandate of gathering data regarding all suspicious financial transactions linked to terrorism financing from all financial institutions.

This information should be promptly shared, and acted upon, by the relevant agencies.

The threats of money laundering and terror financing are dire, and must be nipped in the bud through continuous monitoring of financial inflows.