The United States has listed Kenya among the global money laundering hotspots.
In a report, the US Department of State Bureau for International Narcotics and Law Enforcement Affairs blames the state of money laundering in Kenya to a lack of controls on terrorism financing.
“Kenya remains vulnerable to money laundering and financial fraud. It is the financial hub of East Africa, its banking and financial sector in sophistication, and it is at the forefront of mobile banking,” reads part of the report.
The US government agency further says that money laundering in Kenya is high in both the formal and informal sectors.
The report indicates money laundering in the country is done through criminal activities such as transnational organized crime, cybercrime, and corruption.
It is also orchestrated through smuggling, trade invoice manipulation, illicit drugs trade and counterfeit goods, trade in illegal timber and charcoal, and wildlife trafficking.
This year alone, authorities have seized billions of shillings in counterfeit currency believed to have been a conduit of money laundering.
Two weeks ago, detectives impounded Sh2.6 billion fake currency in a safe deposit at Barclays Bank, Queensway Branch in Nairobi.
In February, officers from the Special Crimes Prevention Unit seized Sh32.6 billion fake notes in a private residence in Ruiru town.
Countries listed as money laundering hotspots are subjected to strict scrutiny from global financial players while investors conduct additional checks on payments involving entities from listed countries.
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