Regulator puts stock market money cleaners on legal notice

Such criticism has forced Kenya to move with speed against money launders culminating to the coming into force of The Proceeds of Crime and Anti-Money Laundering Act in January.

The law provides that any person who knows or ought to have reasonably known or suspected that any property is part of the proceeds of crime but conceals or disguises the nature or source of the same commits an offence.

It also provides for the establishment, powers and functions of the Financial Reporting Centre.

Those found guilty of the offence of money laundering will serve a jail term not exceeding seven years, or a fine not exceeding Sh2.5 million, or both.

Among the guidelines introduced by the CBK is the limitation to make telegraphic transfers (TTS) and bank drafts of over $10,000 (Sh777,000) even with the necessary supporting documentation.

Prior to the introduction of this guideline, forex bureaus were allowed to make TTS and bank drafts of over $10,000 with the clients required to provide the necessary documentation