Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


CMA to tighten rules against money laundering

18 March 2016, 08:11

Nairobi - Capital Markets Authority (CMA) has published new regulations requiring stock and fixed-income brokers to report suspicious trades and transactions above $10,000 to a government body set up to fight money-laundering.

Kenya has the most active open capital market in East Africa and has gained broader appeal in Sub-Saharan Africa as other previously popular investment destinations, such as Nigeria and South Africa, have been battered by plunging commodity prices.

Paul Muthaura, the acting chief of the CMA, told Reuters the move to counter money-laundering is part of efforts to improve corporate governance and turn Nairobi into an international financial centre.

Muthaura also said the CMA was working with the Nairobi Securities Exchange to introduce trading of Exchange Traded Funds and derivatives, which could start in the first half of 2016.

Investors are cautious, complaining about widespread corruption in Kenya and saying regulation is not tight enough.

Muthaura said the CMA would penalise brokerages and investment banks that fail to comply, potentially removing their licenses.

He said tighter rules would encourage capital inflows to Kenya.

"It was not that we have identified money laundering and we must combat it ... Kenya has an ambition towards becoming an international financial centre," which demanded "certain minimum best practices".

"The stronger our anti-money laundering laws, the more our markets become accessible for global capital flows," Muthaura said.

Kenya has already progressed, in 2014, out of the "dark gray list" of the global Financial Action Task-force, where its financial system had been monitored closely because lax laws made it susceptible to money laundering.

The CMA also this month published a new code of corporate governance, demanding more regular and stringent reporting, Muthaura said.

The code seeks to limit the time independent directors can serve on a company's board. "You cannot be an independent director for longer than nine years because after that period you are effectively an insider," he said, adding executives would be exempted.

Analyst blame poor governance for losses at several Kenyan firms in recent years, including Mumias Sugar and Uchumi Supermarkets.

Muthaura said the CMA would act against individuals and firms found to have acted against the best interest of shareholders. "We are in the process of putting together the necessary information to support those actions," he said.

- Reuters


Read more from our Users

Submitted by
S Mbinya
What to do after breakup

Your life does not end after breakup. Here are tips to move on: Read more...

Submitted by
S Mbinya
Rare gift for President Uhuru Ken...

Young Jubilee supporters have a rare surprise gift for the President. Read more...

Submitted by
George Vodongo
Illegal milk nabbed in Mombasa wa...

Milk powder is considered a sensitive commodity under the EAC Common External Tariff (CET) and attracts an import duty at a rate of 60 per cent. Read more...

Submitted by
S Mbinya
Athlete collapses, dies in Machak...

His coach blamed his untimely death on the supplements the athletes are given. Read more...

Submitted by
S Mbinya
Popular radio presenter found dea...

Grace Makosewe was working for Capital FM before moving to Urban Radio in Kisumu. Read more...

Submitted by
Ben Wangui
Four wards to elect new MCAs in b...

This follows the death of former office holders between April and August this year. Read more...