Stiff Penalties For Wash Wash Business as MPs Approve Bill

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Over Ksh 37 billion fake currency seized on May 4, 2021.
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Members of Parliament on Tuesday, November 21, approved the Proceeds of Crime and Anti-Money Laundering Amendment Bill of 2021 that proposes stiff penalties for individuals engaged in money laundering.

While addressing the floor of the House after MPs approved the bill, National Assembly Majority leader Amos Kimunya stated that the bill would provide the government with relevant tools in dealing with activities of money laundering that have become rampant in the country.

Kimunya went ahead to state that Kenya was becoming known for the 'wash wash' business, adding that it was creating a bad image for the country across the globe.

 National Assembly majority leader Amos Kimunya at ACK Passenga Parish, Nyandarua County on May 9, 2021

National Assembly majority leader Amos Kimunya at ACK Passenga Parish, Nyandarua County on May 9, 2021
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“We have as honourable members removed our country from the list of the countries notoriously named as dens of money laundering and wash wash,” Kimunya stated.

Among the stiff penalties proposed in the approved bill include a 14-year jail term for participating in money laundering with an option of paying a fine of Ksh5 million.

Additionally, corporate organisations who engage in or aid in money laundering be fined Ksh25 million or an equivalent of the amount that has been involved in the case.

The legislators also gave powers to the Assets Recovery Agency to freeze bank accounts of individuals for five days as they carry out investigations.

"The five days that we give ARA is just five days. After five days, if your money is okay, it will just be there it will go nowhere but if the money was supposed to be withdrawn for the purposes of crime we will have saved this country," Homabay Woman Representative, Gladys Wanga, defended.

However, a section on the bill which requires lawyers to report suspicious transactions of their clients to the Financial Reporting Centre (FRC), elicited division in the house, as the MPs who are lawyers faulted the clause further calling for an amendment.

"Further, the Bill proposes to designate advocates, notaries and other independent legal professionals who are sole practitioners, partners or employees within professional firms as reporting persons for purposes of the Proceeds of Crime and Anti-Money Laundering Act, 2002," read the bill.

However, the objections by a section of the MPs were opposed as Deputy Speaker, Moses Cheboi, ruled that all due procedure was followed including the public participation stage where the issue would have been raised.

“In introducing the bill in the House, the Leader of the Majority was satisfied by the procedure prescribed in the Standing Orders and previous guidance issued by the Speaker,” Cheboi ruled.

Upon the Bill being approved, the new penalties will become effective after President Uhuru Kenyatta ascends to the Bill.

President Uhuru Kenyatta gives a State of the Nation address speech inside Parliament on Thursday, November 30, 2021.
President Uhuru Kenyatta gives a State of the Nation address speech inside Parliament on Thursday, November 30, 2021.
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