Trustees have been included in the list amid suspicion that Trusts are becoming the choice vehicles to launder proceeds of crime and corruption.
Lawyers are targeted in property transactions, bank account management, company acquisitions and set up of start-ups.
Advocates have recently emerged as the weakest link in the fight against money laundering with clients using bank accounts for depositing client’s cash as shield to reporting to FCC.
Lawyers, employees of accounting firms and trusts holding assets for wealthy people will be required to report suspicious trades and transactions above Sh1 million ($10,000) to a State body set up to fight money-laundering if a new Bill becomes law.
The proposed law demands advocates, state lawyers dealing in properties or notaries, independent legal professionals join the list of non-financial bodies expected to report suspicious dealings and transactions to the Financial Reporting Centre (FRC).
Trustees have been included in the list amid suspicion that Trusts are becoming the choice vehicles to launder proceeds of crime and corruption, the so-called dirty money.
Owners of accounting firms are covered in the current law, but the amendments will see their employees now expected to report to the FRC.
“It seeks to amend Section 48 to expand the reporting obligations to include employees of accountants, advocates and notaries or their employees, trust and company service providers,” reads the proposed law tabled in Parliament last week by National Assembly Majority Leader Aden Duale.
Lawyers are targeted in property transactions, bank account management, company acquisitions and set up of start-ups. Advocates have recently emerged as the weakest link in the fight against money laundering with clients using bank accounts for depositing client’s cash as shield to reporting to FCC.
Kenya has been fingered for illicit money entering the country from crime, drugs, corruption and shady business activities, illustrated with homes in leafy suburbs of more than Sh100 million and luxury cars retailing being sold easily.
Trusts that act as company formation agents, nominee shareholders or provide registered office on behalf of other companies are also in the radar.
Lawyers and trusts join other non-financial business or professionals such as casinos, real estate agencies and NGOs that are required to alert the FRC in case of any suspicious transaction.
The law requires all financial institutions including banks, insurance companies and saccos to file to the FRC daily reports on transactions above Sh1 million and those deemed suspect.
This is aimed at curbing the flow of suspicious wealth from proceeds of crime such as piracy, bribery and terrorism financing.
Penalty for bank executives and persons in breach of reporting rules is Sh1 million fine and a three-year jail term while institutions including banks, saccos facilitating such deals are slapped with a Sh5 million fine on conviction.
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