The Justice and Legal Affairs Committee (JLAC) has commenced public participation on the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2023.

The Bill, which seeks to amend 18 laws, was committed to the JLAC chaired by Hon. George Murugara (Tharaka) and the Departmental Committee on Finance and National Planning chaired by Hon. Kuria Kimani (Molo), for consideration.

 The JLAC received submissions from the Ethics and Anti-corruption Commission (EACC). EACC expressed its support for  the proposal to amend the Anti-corruption and Economic Crimes Act, 2009; to include the offence of money laundering as an economic crime.

 The EACC Deputy Chief Executive Officer, Mr. Abdi Mohammed noted that since money laundering offence has been recognized as an economic crime under the Anti-Corruption and Economic Crimes Act, which is enforced and implemented by the Commission, there should be the inclusion of an authorized officer who will investigate cases of money laundering brought before the Commission.

 The Law Society of Kenya (LSK) while presenting various amendment proposals to different Acts, welcomed the clause in Section 11 granting EACC access to relevant information in State Agencies in the prevention and investigation of economic crimes, noting that this will enable the Commission to fully investigate corruption and money laundering in public entities. However, they proposed the substitution of the word ‘may’ with ‘shall’, as the use of ‘may’ in the clause indicates that the other State organs have discretion whether or not to grant the EACC discretion.

 On Section 56A of the National Police Service Act, 2011; LSK proposed an inclusion of a sub-section empowering the Cabinet Secretary to make regulations governing the procedure of controlled delivery. LSK argues that, the introduction of controlled delivery will be useful in tracking persons responsible for money laundering and terrorism financing, as opposed to mere confiscation of drugs or illegal stuff.

Transparency International (TI) Kenya and Civil Forum for Asset Recovery (CiFAR) while presenting their submission on Section 56A of the National Police Service Act, proposed an addition of a new section, that would include an accountability mechanism that ensures a report back on the outcome of the investigation and handling of the controlled delivery, as leaving the amendment in its current state could open up avenues for corruption; in addition to creating a risk of confusion, laxity or involvement of police officers in criminal activities.