NAIROBI: The US will buy Kenya a software to help track illicit money coming into the country. This is as the American government moves in to support Kenya’s fight against money laundering. As details of the recent visit by the US president to Kenya become clearer, it has emerged the US government made a host of promises touching on Kenya’s financial sector.
Kenya’s Financial Reporting Centre (FRC) has been struggling in the fight against money laundering, which has been linked to terrorism financing. Recently, the Government was forced to shut down 13 money remittance companies that deal in Hawalas, a move that became counter-productive as it was seen as victimising everyone. The ban has however been lifted on some firms. This saw the FRC request for assistance from the US government during President Barack Obama’s three-day visit last month.
According to a communiqué issued by the US government, the Obama administration has committed to support the fight against corruption, bad governance and in improving institutions. “The US also pledges to procure software for the FRC to improve the analysis of suspicious transactions and better communicate with other countries’ FRCs once the requisite platform is in place,” the communiqué on the White House website reads in part.
The statement did not however say how much the software would cost. But it is expected that Kenya will give the US open access to the software to enhance collaboration between the two countries. This will favour the interests of the US in fighting terrorism and other international money crimes.
Kenya committed to accelerate work to strengthen the capacity of FRCs and Central Bank to track illicit financial flows. This will include fitting the FRC with the requisite platform to run anti-money laundering software. The move is expected to boost Kenya’s standing globally in fighting international economic crimes.
This comes just a year after it was removed from a watch list of countries that are not sufficiently combating money laundering and terror financing. President Obama pledged that his government shall also extend best practices and advice to Kenya’s FRC by conducting an Analyst Exchange workshop in Nairobi in late 2015. “The US government plans to work with the Government of Kenya to seek suitable partnerships with international institutions to support this agenda,” the statement reads.
Kenya said it was rolling out an enhanced coordinated port operations programme under the Border Control and Operations Coordination Committee to coordinate efforts for increased efficiency and transparency in customs and clearance procedures.
