Kenyan lawmakers are opposed to the banking regulation put in place by the Central Bank to stop cases of money laundering. The legislators argue that the laws are a hindrance to businesses.
The banking law came into effect in 2016. It requires people depositing or withdrawing funds exceeding Ksh1 million to provide details on the source of the money, its intended use, and information on the recipient of the money. People who fail to provide this information are reported to the Financial Reporting Center for carrying out suspicious transactions.
The MPs claimed that bank customers were being harassed and that some had opted to avoid banks all together. The lawmakers threatened to repeal the anti-money laundering law created by the Central Bank.
Kenya Bankers Association Chief Executive Habil Olaka has defended the law saying that it meets global requirements of fighting terrorism financing and money laundering.
“We are part of the global system that seeks to insulate the industry against money laundering and financing of terrorism,” said Dr Olaka.
The Anti-Money Laundering law received a rare nod from Tongaren Member of Parliament Simiyu Eseli, saying that people must declare the source of huge amounts of money they are transacting at a given time.
