Kenya’s deficiencies in its anti-money laundering/counter-terrorist financing framework: An analysis and possible solutions

Abstract

The theme of this paper is the gaps that are prevalent in the Kenyan anti-money laundering (AML) framework. In order to clearly illustrate these gaps, the paper refers to AML frameworks in other jurisdictions and shows how these have been able to deliver a more robust system that more efficiently detects and prevents money laundering. This comparative approach goes to demonstrate that the governmental institutions in countries that have vibrant AML frameworks have put in a lot of effort and resources to ensure that this is the case. The paper goes on to recommend possible solutions to the gaps that have been outlined. One of the key learning points for the reader is that for governments to ensure that the AML frameworks in their countries are efficient and effective, they must consider learning from other jurisdictions so as to improve what is already in place. Secondly, it is clear that even after having an AML framework in place, continuous improvement of the same is paramount to ensure that the framework remains robust over the passage of time. Thirdly, another learning point is that AML frameworks are increasingly becoming entwined with other legal and governance frameworks such as the prevention of identity theft and whistleblowing. From the paper it is clear that to have a well-established AML framework, it is prudent for governments to consider having in place other frameworks such as whistleblowing and identity theft prevention laws, as well as an enforcement mechanism to ensure the AML structure is well supported.