Parliament should carefully consider the Cabinet’s proposal to relax checks on transactions of $15,000 (Sh2.2 million) and below before making the final decision.

Various stakeholders, including banks, are now presenting their views on the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill 2023, which wants to increase the cash reporting threshold by 50 percent from the current $10,000 (Sh1.44 million).

Parliament should listen to proposals of stakeholders such as banks, which through the Kenya Bankers Association have cautioned that increasing the threshold will put Kenya on the edge given its geopolitical location.

Kenya should be careful that it hits the right balance between facilitating transactions and ensuring the sanctity of its financial system. 

Kenya is aligned with the Financial Action Task Force (FATF), the global money laundering and terrorist financing watchdog. 

Its counterparts in the East African Community—Tanzania, Uganda, South Sudan and Tanzania— are all on FATF’s ‘grey list,’ meaning they are under increased monitoring. 

The country is also a key regional business and travel hub as well as a gateway to the neighbouring East African economies and well-developed trade links to the rest of the world. 

The geo-positioning, trade inter-connectedness and high fintech use mean Kenya cannot afford to drop the ball on money laundering and terrorism financing risks monitoring. Business Daily