MPs refuse to pass law that will stop corruption and money laundering

Even with the height of corruption in Kenya and billions disappearing mysteriously, Kenyan MPs are demanding the removal of all regulations that require one moving more than Sh1 million through the financial system to declare the source, purpose and beneficiaries.

Currently for instance, one cannot withdraw more than Sh1 million a day or make big deposits without attracting the hawk-eyed Financial Reporting Centre, which is responsible for to detecting and reporting such transactions.

This means MPs want you to make transactions of millions without anybody asking a question where you got the money and why your withdrawing etc.

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The MPs have further vowed to show Central Bank of Kenya (CBK) Governor Patrick Njoroge the door after CBK failed to implement the Amendment to the Banking Act Section 33C, compelling banks to issue fresh regulations on deposits and withdrawals.

The danger is that the new banking law MPs want will lock Kenya out of the global financial system if implemented, Central Bank of Kenya (CBK) governor Patrick Njoroge has warned.

“Kenya’s banking sector will be blacklisted internationally and the country will most likely be blacklisted by the FATF,” the CBK boss insisted.

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ATF is an inter-governmental body established to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and proliferation of weapons of mass destruction.

On Thursday last week, MPs Aden Duale (Leader of Majority) Junet Mohamed (Suna East) among others accused Dr Njoroge of using illegal means to regulate the banking industry, a move they said had stifled liquidity in the financial sector.

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Mr Duale said the actions by the CBK governor would lead to serious ramifications on the industry.

“When you sell your three camels and go to the bank, you are asked where the money is coming from. What the governor is doing is not good for a growing economy like Kenya. The whole liquidity in the bank is stifled. This tendency of disregarding Parliament and its powers, must stop,” he said.

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