A recent survey shows that the banking sector is at high risk of money laundering.
During the launch of the report on the National Risk Assessment on Money Laundering and Terrorism Financing Director-General and Chief Executive Officer (CEO), Financial Reporting Centre, Saitoti Maika noted that banks are likely to be abused for ML due to financial inclusivity which has led to majority of Kenyans transacting through the banking system.
“While this is indicative of the money laundering activities in the activities in the sector, the high number of STRs suggests that this sector has an adequate framework for detection of money laundering threats through a system of compliance, surveillance, and monitoring,” he said.
Maika stated that the exposure of Kenya’s banking system to international business also increases the risk of ML within the banking sector.
“By the sheer size and the broad customer base engaged in cross broad financial activities between Kenyan banks and their regional subsidiaries and correspondents there underlies an inherent risk for money laundering,” he said.
Chairperson Kenya Bankers Association, Rebecca Mbithi acknowledged that the move for the report will help strengthen the financial system in the country.
CEO Capital Market Authority Wykliffe Shamiah also noted that the report will certainly ensure financial systems are safe from criminals.
