Treasury Activates Fund to Target Money Laundering and Criminal Networks
The Treasury Cabinet Secretary Njuguna Ndung’u has announced the activation of a fund aimed at tackling money laundering and criminal networks. This move is part of the government’s intensified efforts to crack down on illicit activities and safeguard the financial system.
Published under the title The Proceeds of Crime and Anti-Money Laundering (Criminal Assets Recovery Fund) Regulations, the new regulations establish an asset recovery advisory board and appoint a director to administer the fund. The asset recovery advisory board will be responsible for providing guidance on the fund’s administration and management, while the director will oversee its day-to-day operations, including managing bank accounts.
The primary objective of these regulations is to outline the operational framework for the fund and the utilization of its assets and funds. The fund, established under the Proceeds of Crime and Anti-Money Laundering Act, will hold all monies derived from confiscation and forfeiture orders, as well as properties recovered from such orders.
Various sources contribute to the fund, including the amounts remaining from foreign confiscation orders, appropriations by Parliament, domestic and foreign grants, and money or property recovered under the Anti-Corruption and Economic Crimes Act. The new regulations also specify additional sources of funds, such as incidental compensation and restitution orders, income generated from fund investments, and money accrued from managing confiscated or forfeited assets.
However, it is important to note that the fund is required to transfer funds derived from concluded confiscation and forfeiture orders to the government’s consolidated fund. Additionally, five percent of the total proceeds recovered or realized from any seized or forfeited property will be allocated to the asset recovery agents, while three percent will be allocated to the Finance Reporting Centre. Other disbursements from the fund will include settlements related to third-party claims and administrative expenses.
The Proceeds of Crime and Anti-Money Laundering Act plays a vital role in combating money laundering by introducing measures for identifying, tracing, freezing, seizing, and confiscating the proceeds of crime. It defines the proceeds of crime as property or economic advantage derived directly or indirectly from an offense.
The activation of the fund stands as a significant step in the government’s efforts to curb money laundering and dismantle criminal networks. By establishing clear regulations and appointing a dedicated team to manage the fund, the Treasury aims to enhance its ability to recover illicit assets and disrupt the financial activities of criminals.
This move is expected to bolster the country’s overall security, strengthen its financial sector, and foster international cooperation in the fight against money laundering. The government remains committed to combatting illicit activities, safeguarding the integrity of the financial system, and ensuring the prosperity and well-being of its citizens.
