Wash wash gangs: Kenya tightens noose on money laundering in bid to exit grey list
Kenya is implementing urgent financial reforms to exit the Financial Action Task Force (FATF) grey list by the end of the month. The government has established a multi-agency working group to monitor non-profit organizations and combat money laundering and terrorism financing.
Why it matters
Being on the FATF grey list can significantly hinder a country's economy by reducing capital inflows and complicating international banking and trade.
A Makadara law courts officer counts fake money recovered by police from a suspect in Komarock /FILE
Kenya is racing against time to complete reforms that could secure its removal from the Financial Action Task Force (FATF) grey list by end of this month.
A key player on this mission told the Star that stakes are intentional and not merely for reputation.
"We are almost there. It is a generational commitment to ensure absolute transparency in the country's vast financial architecture," he said but declined to share more information.
An International Monetary Fund (IMF) study estimates that countries placed under FATF increased monitoring suffer an average decline in capital inflows equivalent to 7.6 per cent of GDP.
Given that latest estimates by the Kenya National Bureau of Statistics (KNBS) puts Kenya's total Gross Domestic) product (GDP) at Sh17.6 trillion, the country could be losing Sh1.3 trillion to grey list effects.
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