On September 2, a High Court in Kenya ordered the freezing of a woman’s three bank accounts. The funds were suspected to be linked to money laundering activities.
The Assets Recovery Agency (ARA) successfully applied for the freeze, which affected accounts holding Ksh4 million, Ksh238,324, and Ksh13,532, respectively. The court’s ruling included a prohibition on any transactions or dealings with these accounts by the woman or her representatives.
The court mandated that the woman surrender the log books for two vehicles—a lorry and a station wagon—within seven days. The court also froze the bank accounts. The ruling also included a directive to the National Transport and Safety Authority (NTSA).
They must register a warning on the vehicles. This prevents any sale or transfer during the investigation period. This comprehensive approach aims to make sure that the assets stay intact while the case is being reviewed.
The court’s orders are set to stay in effect for 90 days. This is stipulated by the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA). Should the woman or her agents fail to obey the court’s directives, they face contempt charges.
These charges result in imprisonment for up to six months. The case is scheduled for mention on November 28, 2024, allowing the court to watch compliance and progress.
This legal action is part of a broader government initiative. It aims to combat money laundering and improve compliance with international financial regulations. The Kenyan government is particularly focused on addressing issues.
These issues have led to the country being placed on the Financial Action Task Force (FATF) grey list. This list indicates increased scrutiny due to weaknesses in anti-money laundering enforcement.
