The High Court has ordered a Nigerian student to forfeit Ksh3.9 million to the government in seven days after he was accused of money laundering.
According to a notice dated Friday, August 4, the student was arrested on November 9, 2021, and charged with financial promotion of an offence contrary to Section 7 of the Proceeds of Crime and Anti-Money Laundering Act.
The Section states that a person who knowingly transports or receives anything of value to another person with intent to commit an offence is deemed an offence.
Justice Sifuna Nixon ruled that the funds' forfeiture will pave the way for police to complete the investigations.
"That upon the said Ksh3.9 million being received at the National Treasury, the Principal Secretary shall within 7 (seven) days from the date the funds are received, file an affidavit in this suit confirming acknowledging receipt of the said money and confirming that that the same is being transmitted to the Consolidated Fund," read part of the ruling.
The judge also directed Treasury CS Njuguna Ndung'u to place before Parliament the approval of the operationalisation of the Criminal Recovery Fund and give a report within six months.
If approved, all monies that courts order to be forfeited to the government shall be paid into the National Treasury.
The suspect was arrested in 2021 at the Posta Parcel Office in Nairobi while attempting to collect a package containing cash concealed inside a jacket.
It was revealed that the parcel, which also contained clothes and books, was shipped to Kenya from South Carolina, USA.
He was arraigned in court on November 8, 2021, and charged with financial promotion of an offence which contravened the Money Laundering Act.
The suspect pleaded not guilty to the charge and was released on a cash bail of Ksh150,000 or a bond of Ksh200,000.
Kenya intensified its efforts to clamp down on money laundering activities after the Cabinet approved the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill 2023 on July 18.
The new bill proposes hefty penalties for individuals caught violating cross-border currency declaration laws in line with the Financial Action Task Force (FATF) standards.
Cabinet also entrusted the Financial Reporting Centre with the responsibility of tracking the suspects.
FRC has the authority to impose sanctions on those found guilty of handling proceeds of crime.
