Remittance firm Dahabshiil trains staff to fight money laundering

Kenya’s largest remittance services provider Dahabshiil Kenya says it has equipped staff with forensic skills to boost their capacity to detect and control money laundering.

Chief executive Abdi Mohammed said the training will help the firm minimise the risk of bankrolling criminal activities as required under the Proceeds of Crime and Anti-Money Laundering Act.

“We are working closely with regulators of financial institutions in Kenya and other countries to minimise and eliminate any loopholes that money launderers can exploit to move their ill-gotten cash,” he said.

Dahabshiil, licensed by the Central Bank of Kenya (CBK) in 2013, is the largest money remittance provider (MRP) in Kenya. It has outlets across 144 countries, including in Europe and United States.

It was among the 13 firms whose operations were in April suspended by the government, citing the possibility of being used by Somalia-based militant Islamists to finance terrorism.

The suspension was later lifted after President Uhuru Kenyatta directed the CBK to issue comprehensive regulations for the activities of remittance firms.

READ: Dahabshiil still in business, Central Bank says

Anti-money laundering specialist Dishon Kirima, who conducted the training, said implementing robust systems against the crime is pro-business and attracts more legitimate transactions.

He called on the government to ensure that all financial institutions in Kenya fully comply with relevant laws to create a level playing field for all players in the money remittance sector.

Financial institutions in the country are required to report suspicious transactions to the Financial Reporting Centre (FRC), the State agency mandated to identify proceeds of crime and combat money laundering.

The FRC maintains a database of all reports of suspicious transactions and works with relevant agencies to track suspects.
A recent report by the US government on money laundering and narcotics indicated that Kenya had made strides against the crimes, but remains vulnerable.

Early this year, the CBK wrote to banks introducing strict rules targeting laundering and terrorism financing.

The CBK, among other things, ordered bank customers to fill forms explaining the nature of cash transactions in excess Sh1 million.