President Uhuru has assented the Proceeds of Crime and Anti-Money Laundering (Amendment) Act, 2021. The act provides that the Financial Reporting Centre (FRC) which is the state, and the assets recovery authority can freeze suspicious accounts for five days without a court order as they conduct investigations on the source of money.
The bill was passed by Parliament late last month following a ruling by National Assembly Deputy Speaker Moses Cheboi that the government-sponsored bill was properly before the House. “In introducing the bill in the House, the Leader of the Majority was satisfied by the procedure prescribed in the Standing Orders and previous guidance issued by the Speaker. Section 18 of the Proceeds of Crime and Anti-Money Laundering Act, 2009 currently provides for the entrenchment of the principle. Any member seeking to buttress the principle further in light of the amendments proposed by the bill is at liberty to propose appropriate amendments for consideration by the House,” he ruled.
Lawyers who are Members of Parliament led by Tharaka MP Gitonga Murugara sought that the bill be dismissed on claims it contains certain unconstitutional provisions. He further questioned the obligation of lawyers and accountants to report suspicious transactions, adding that such a move violated Article 27 of the Constitution which prohibits any form of discrimination. Murugara also held that the inclusion of advocates as reporting institutions for suspicious financial transactions does not, at face value, erode legal principle of advocate-client confidentiality.
Homa Bay Woman Rep. Gladys Wanga, on her part, stated, “It’s just five days, after that if your money is okay it will just be there, it will go nowhere. But then, within those 5 days, if the money was supposed to be withdrawn for purposes of terrorism or others, we will have saved this country.