Nairobi will host
the inaugural Kenya Anti-Financial
Crime Summit bringing together
industry experts to discuss the
implications of Kenya’s recent
grey-listing by the Financial Action
Task Force (FATF).
The event set for October 24 and 25 is coming at the time experts are warning that the country could suffer damage to its standing in the global financial system, scaring away potential investors.
According to Global Financial
Integrity (GFI), Kenya’s reputation
as a stable and transparent financial
environment is likely to be compromised, potentially discouraging foreign investment and deterring
businesses from operating in the
country.
Research indicates a reduction in foreign direct investment (FDI) to GDP ratio by up to two per cent for countries with low FATF scores.
The same research shows that FDI inflows can decline by three per cent, portfolio inflows by 2.9 per cent, and other investment inflows by 3.6 per cent of GDP.
Organised by Flywheel Advisory in collaboration with the Financial Reporting Centre (FRC), the forum themed “Unifi ed Strategies: Tackling Greylisting” will see experts and regulators discuss both legacy and emerging challenges that are critical to safeguarding Kenya’s financial system. Flywheel Advisory founder and executive director Grace Mburu says the summit will serve as a platform for all stakeholders to collaborate and devise comprehensive strategies and measures to address these challenges.
“Financial crime is evolving and we need to develop appropriate strategies to counter money laundering, terrorism financing, and proliferation financing if we are to remove Kenya from the FATF grey list,’’ Mburu said.
Kenya was placed on the Financial Action Task Force (FATF) grey list in February 2024 after an evaluation of the country’s adherence to global standards and recommendations for combatting money laundering and related financial crimes found weaknesses.
Mburu added that there is a need to put in place measures to detect and prevent illicit funds from being cleared through the non-financial Businesses and Professions (DNFBPs) which include real estate agents, casinos, betting companies, dealers in precious metals, precious stones, cars, accountants, trust and company service providers, advocates, and independent legal professionals.