VZCZCXYZ0003
PP RUEHWEB

DE RUEHNR #1015/01 0611105
ZNR UUUUU ZZH
P 021105Z MAR 07
FM AMEMBASSY NAIROBI
TO RUEHC/SECSTATE WASHDC PRIORITY 7934
INFO RUEHXR/RWANDA COLLECTIVE PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEAWJA/DEPT OF JUSTICE WASHDC
RUEAHLC/HOMELAND SECURITY CENTER WASHDC

UNCLAS NAIROBI 001015 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR AF/E, AF/RSA 
DEPT FOR EB/ESC/TFS KATHERINE LEAHY AND LEANNE CANNON, S/CT FINANCE 
GALER AND NOVIS 
JUSTICE FOR AFMLS DE KLUIVER 
TREASURY FOR FINCEN 
TREASURY FOR VIRGINIA BRANDON 
 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: EFIN ETTC KTFN LE PREL PTER KCRM KE
SUBJECT: AML BILL TO BE TOP GOK PRIORITY IN MARCH 
 
SENSITIVE BUT UNCLASSIFIED.  FOR USG USE ONLY. 
 
¶1. (SBU) Summary: Kenya Anti-Money Laundering Task Force (AMLTF) 
officials say they adopted many of USDOJ's suggested amendments to 
the anti-money laundering bill, including the critical definition of 
criminal offense, and that the bill will be one of the Government of 
Kenya's top priorities in the Parliamentary session opening o/a 
March 20.  Mission is working with the AMLTF to develop and 
implement an advocacy program for senior GOK officials, members of 
Parliament (MPs), private sector stakeholders, and the public to 
educate them on the need to fight money laundering, and the bill's 
provisions.  Kenya will remain acutely vulnerable to money 
laundering, related crimes, and terrorist financing until it passes 
and implements an AML law, making this a top Mission priority.  End 
summary. 
 
¶2. (SBU) EconOffs met with the AMLTF on February 22 to discuss USDOJ 
Jack de Kluiver's comments on the Proceeds of Crime and Anti-Money 
Laundering Bill of 2006, the GOK's plans for submitting the bill to 
Parliament, and the AMLTF's request for advocacy and implementation 
support. 
 
AMLTF Welcomed USDOJ Comments on Bill 
------------------------------------- 
¶3. (SBU) Jack de Kluiver, Senior Trial Attorney in USDOJ's Asset 
Forfeiture and Money Laundering Section, worked very closely with 
the AMLTF in 2005 to draft the AML bill.  After reviewing the 
revised text the GOK submitted to Parliament in November 2006, de 
Kluiver noted two deficiencies that could make it difficult to use 
the law to prosecute offenders.  The bill did not provide a specific 
definition of an "offence," making it unclear whether it included 
all crimes in Kenya.  It was also unclear how the bill would cover 
either the laundering or forfeiture of the proceeds of any foreign 
offences.  De Kluiver offered a definition partly based upon the 
2000 Model UN Anti-Money Laundering Proceeds of Crime Act that 
addressed both these problems: "Offence" means an offence against a 
provision of any law in Kenya or an offence against a provision of 
any law in a foreign State for conduct which, had it occurred in 
Kenya, would constitute an offence against a provision of any law in 
Kenya." 
 
¶4. (SBU) De Kluiver expressed concern about the ambitious scope of 
the law, suggesting that requiring lawyers, notaries, car dealers, 
insurers, etc. to report suspicious transactions will make 
implementing all aspects of the law too difficult for Kenya's 
regulators.  He also noted the bill's obligation that banks report 
all suspicious transactions to the financial intelligence unit 
within seven days is unrealistic, especially since failure to comply 
is a criminal offence.  He suggested extending the reporting 
deadline. 
 
¶5. (SBU) AMLTF officials welcomed de Kluiver's comments, and said 
they had accepted many of them, including the definition of 
"offence."  However, they believed it was necessary to maintain the 
comprehensive scope of the law, even though other professional 
organizations would likely echo the opposition already expressed by 
the Law Society of Kenya.  The AMLTF Chairman said he had briefed 
the Finance Minister on the amendments, and offered to send a copy 
of the revised text to the Embassy.  He stated the Attorney General 
had already sent the bill to the Minister of Finance for signature, 
but that the amendments could still be incorporated.  Any amendments 
that did not get into the text before it was tabled in Parliament 
could be added while the bill was in Committee. 
 
Bill Will Be Top GOK Priority 
----------------------------- 
¶6. (SBU) The AMLTF officials were confident the GOK would resubmit 
the AML bill to Parliament when the session begins o/a March 20, and 
that the bill would be one of the GOK's top priorities.  They could 
not guarantee Parliament would pass the bill, especially in an 
election year.  The Task Force Chairman believed the Finance 
Committee supported the bill in general, but had concerns about 
unspecified provisions.  He did not comment on the views of the 
Administration & Justice Committee, chaired by MP Paul Muite. 
(Note: After meeting the Finance Committee Chairman, we doubt his 
support for the bill.  And Muite has been a consistent critic of the 
Anti-Terrorism Bill as a threat to civil liberties, and may oppose 
the AML bill for the same reason.  End note.) 
 
Need to Educate MPs, Stakeholders and Public 
-------------------------------------------- 
¶7. (SBU) USAID, through its parliamentary support program, will also 
work with the AMLTF and Mission elements to develop an advocacy 
strategy for senior GOK officials, members of Parliament (MPs), 
private sector stakeholders, and the public to educate them on the 
need to fight money laundering, and the bill's provisions.  The 
AMLTF has requested Mission support for two workshops designed to 
educate MPs and stakeholders and build support by giving them a 
sense of ownership.  The AMLTF said FATF's Eastern and Southern 
African Anti-Money Laundering Group (ESAAMLAG) would help it bring 
in senior officials from South Africa and/or Nigeria to discuss 
their experiences implementing AML laws at the workshops. 
 
¶8. (SBU) The Mission has already been advocating for passage of the 
bill, and will continue.  Ambassador Ranneberger has raised it 
repeatedly with President Kibaki and Ministers, and will raise it 
with opposition leaders.  Econ Counselor discussed it with the 
Finance Committee Chairman and his deputy.  EconOff urged the Kenya 
Bankers Association, Nairobi Stock Exchange Chief Executive his 
deputy, and the Capital Markets Authority chief to support the 
bill. 
 
¶9. (SBU) Comment: Kenya will remain acutely vulnerable to money 
laundering, corruption, narcotics and weapons smuggling, and 
terrorist financing until it implements an AML law.  Encouraging 
passage and supporting implementation of the law remain top Mission 
priorities.  The fact that the GOK tabled the bill last November 
makes it very likely the GOK will table the AML bill again early in 
the March Parliamentary session.  We are also encouraged by the 
GOK's willingness to accept suggestions to improve the bill's 
effectiveness as a prosecutorial tool.  However, any MPs involved in 
corruption or money laundering may openly or subtly resist the bill, 
and the run-up to the December general election increases the 
unpredictability of Kenya's already-capricious politics.  It is 
therefore impossible to know how strongly the GOK will push the 
bill, or whether Parliament will approve it. 
 
RANNEBERGER