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{
"id": 1554483,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1554483/?format=api",
"text_counter": 337,
"type": "speech",
"speaker_name": "South Mugirango, UDA",
"speaker_title": "Hon. Silvanus Osoro",
"speaker": null,
"content": "country because Kenya is still on the grey list. Therefore, the Bill strengthens the regulatory framework, inter-agency collaboration, and compliance obligations. That ensures Kenya meets its international commitments and restores confidence in its financial system. Having given such a serious preamble, it is important to demystify certain items and make Members understand the content of the Bill. What exactly is the content of the Bill? Besides the title, you hear Members speaking many things about the Bill when you move around the corridors of Parliament, yet some will not have gone through it. Therefore, it is important for us to try simplifying the Bill to help Members understand it. With respect to the Proceeds of Crime and Anti-Money Laundering Act (CAP 58), the Bill proposes renaming the position of the Director of the Assets Recovery Agency to Agency Director-General. That ensures consistency with other investigative bodies in the country. You will realise that we have renamed most investigative agencies. When you talk about the Directorate of Criminal Investigations (DCI), we have the Director of DCI. On the Proceeds of Crime and Anti-Money Laundering Act, the Bill proposes renaming the position of the Director of the Assets Recovery Agency to Agency Director-General to equate or go in line with other investigative bodies in the country. Additionally, the Bill seeks to include dealers in precious metals as Anti-Money Laundering (AML) reporting institutions. It requires them to report any cash transactions of US$15,000 or more conducted with a customer. In particular, the AML reporting institutions require dealers to report any cash transactions with regard to precious metals. The proposed amendment introduces prescribed penalties for non-compliance with any regulations made under the Act to reinforce compliance. If this Bill is enacted, a natural person could face imprisonment for up to seven years, a fine not exceeding Ksh10 million, or even both. Non-compliance could attract a fine of up to Ksh20 million for corporate entities. The Bill also seeks to remove non-profit organisations from AML or Combating the Financing of Terrorism (CFT) reporting obligations to align with FATF standards. In line with this, it proposes to remove the Public Benefit Organisations Regulatory Authority (PBORA), formerly the NGOs Coordination Board (NGOCB), from their supervisory schedule. With respect to the Prevention of Terrorism Act (Cap 59B), the Bill seeks to introduce a clear definition of \"terrorism financing\". This is the bone of contention. It seeks to introduce a clear definition appertaining to what terrorism financing is, encompassing the collection or provision of property and service for the Commission of Terrorism Act as well as the financing of travel for terrorism purposes. This clarity will help law enforcement agencies to combat the threat of terrorism effectively. Without a clear definition of what exactly terrorism financing is, one would face a challenge when transacting, especially from investigative agencies. At face value, one may face the challenge of being accused of terrorism financing because of such uncertainty in the definition of this phrase. The definition encompasses the collection or provision of property and service for the commission of terrorism act. So, to deter such offences, the Bill proposes harsher penalties for financing travel for terrorism purposes. Very harsh! We all know what terrorism has done in this country. We have faced either directly or indirectly the challenges of terrorism. So, this Bill proposes harsher penalties for those who finance the travel for terrorism purposes. If enacted, a convicted natural person would face imprisonment of up to 20 years, while a legal entity could be fined up to Ksh20 million. So, if you are hiding behind a legal entity, say a company or an NGO, and you finance the terrorist travel, then you will face a fine of up to Ksh20 million because you are putting the lives of other Kenyans in danger. Additionally, Hon. Temporary Speaker, the Bill seeks to grant the Financial Reporting Centre, supervisory bodies, and self-regulatory organisations greater authority to supervise and enforce preventive measures against terrorism financing and the financing of proliferation activities. Even before we talk about what happens when a terrorism act is done, we must have The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}