Money laundering

Parliament began debate on the proceeds of crime and anti money laundering bill that seeks to establish legal and institutional mechanisms to curb the vice.

Moving the motion to have parliament adopt the bill deputy prime minister and minister for finance pleaded with legislators to give the bill a chance pointing out that by criminalizing the vice and putting in place legislation to that effect will be the first step the country has taken towards fighting corruption.

He said the bill will require financial institutions to be thoroughly vetted and registered, as well as will give the government the teeth to cease property suspected to have been acquired through criminal activities as well as allow the creation of a reporting centre where the public can provide information of criminal activities.

Prime minister Raila Odinga who seconded the motion, urged legislators to bite the bullet saying proceeds of crime and money laundering had adversely affected the country's economy with Kenya and Somalia been the only countries in Africa yet to adopt the bill agreed upon until a un treaty.

Raila pointed out the adverse effects were already registering with high property value of land was been experienced in parts of Nairobi amid fears that proceeds from piracy along the Indian ocean coast were responsible for negatively affecting trade with the ill gotten money deemed to be in circulation.

He added the bill was not targeting any particular community and propaganda should be left out of the debate if the country's economy is to remain stable.

Debate was however heated with legislators raising concern over the implementation process citing clear mechanisms and a criteria in determining which institutions are legal and illegal.

The bill was first published in October 2006, but lapsed, a second attempt at reintroducing the bill in April 2007 also failed with it lapsing for the second time.

This is the third time the bill is before the house having been introduced on 17th of July 2008.