High Court judge Nixon Sifuna has issued preservatory orders to freeze Ksh36.5 million (USD274,369) belonging to a company involved in money laundering.
In the ruling contained in the Gazette Notice released on Friday, employees, agents, and servants of the accused will be barred from transacting, withdrawing, transferring or dealing in any manner in relation to the said funds held at a local bank.
"It is hereby ordered that a preservation order be and is hereby issued prohibiting the responded, its employees, agents, servants or any other persons acting on its behalf from transacting, withdrawing and/or dealing in any manner howsoever in respects to the funds held at the said account," the judge ruled.
This preservatory order will be in effect for 90 days from the date of the ruling, May 16.
The case had been filed by the Assets Recovery Agency (ARA) which asked the court to certify the case as urgent. The agency had requested the court to issue the preservatory orders and bar the employees from accessing the funds.
"That the honourable court makes any other ancillary orders as it may deem it and just for proper and effective execution of the orders," the agency argued.
Per the Proceeds of Crime and Anti-Money Laundering Act, a court of law may grant preservatory orders if it is proven that the funds or property are proceeds of crime and have been or are intended for use in the commission of an offence.
The act outlines that all property seized by the court shall be dealt with in accordance with the directions of the court that made the orders.
"A court making a preservation order shall at the time make an order authorising the seizure of the property concerned by a police officer, and any other ancillary orders that the court considers appropriate for the proper, fair and effective executive of the order," reads part of the act.
Any person accused of acquiring property through money laundering or crime as listed in the act commits an offence and is liable to a Ksh5 million shilling of the amount of the value of the property involved, whichever is higher or both the fine and imprisonment as seen fit by the court.
In the case of a corporation, the fine is set at Ksh25 million or the amount of the property's value or whichever is higher.
"Where any offence under this Part is committed by a body corporate with the consent or connivance of any director, manager, secretary or any other officer of the body corporate, or any person purporting to act in such capacity, that person, as well as the body corporate, shall be prosecuted in accordance with the provisions of this Act," reads part of the act.
