US issues report on AML in Kenya

The US Department of State has prepared a report that details drug trafficking and money laundering activities in Kenya.

The International Narcotics Strategy Report reviews 2009 drug trafficking and money laundering in Kenya.

This report could have been the basis for the banning of 5 Kenyans from visiting the United States of America.

According to the report, Kenya is a significant transit country for cocaine, heroin and hashish, as well as it serves as a money laundering hub. It says: “Quantities of heroin and hashish transiting in Kenya, mostly from Southwest Asia bound for Europe and United States have markedly increased in recent years”.

The document blames lack of resources and rampant corruption for the 2 vices. It suggests that Kenya’s financial system may be laundering more than USD 100 million yearly, including an undetermined amount of drug money and Somali piracy earnings.

The report emphasizes that, in spite of Parliament passing the Proceeds of Crime and Anti-Money Laundering Law, 2009 signed by President Kibaki on December 31, 2009, money laundering continues unabated in Kenya. This law has not come into force because of the Ministry of Finance that has not gazetted its commencement date. However, it was indicated that such date shall not exceed 6 months after the date of assent.

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