The International Monetary Fund (IMF) wants financial transactions of politicians and their networks tracked in a bid to stop corruption.
The IMF has asked the Kenya government to tighten anti-money laundering laws and increase inspections on bank transactions of both physical and financial audits to expose networks of politically linked individuals.
The global lender wants Kenya to seal all loopholes used by corrupt individuals within the government to steal public funds through proxies.
According to IMF, Anti-money laundering (AML/CFT) risk-based supervision should be further strengthened using supervisory tools like onsite and offsite supervision to ensure banks adequately implement enhanced due diligence measures on politically exposed persons and other higher-risk customers vulnerable to corruption.
Banks are already required to report suspicious transactions, vet customers details and know-your-customer rules and report when more than Kshs.107 million is moved across their systems.
The Central bank of Kenya expanded its dragnet to unveil the identity of big traders of the Absa’s gold-backed exchange-traded fund listed on the Nairobi Securities Exchange after the counter picked up trades during the Covid-19 pandemic.
Recent investigations into money laundering schemes have revealed how officials siphon State funds through proxies and a complex web of related bank accounts to cheat existing money laundering laws.
In a recent case, Assets Recovery Agency accused senior procurement officer at Kenya Rural Roads Agency Margaret Wanja Muthui of buying apartments herself or through proxies and a company whose directors were mostly her relatives during the demonetisation period.
The Central Bank of Kenya has been tightening the noose on money laundering to stop drug dealers, fraudsters, tax evaders, corrupt politicians and terrorist groups from laundering their cash in Kenya.
The collaboration between anti-graft agencies and the banking sector is a mechanism that will help in detecting officials linked to embezzlement of public funds. The war against corruption calls for joint efforts especially by institutions that act as gate keepers and are able to access the monies wired to these individuals, if this war is to be won.