A High Court in Nairobi has frozen more than Ksh8 million belonging to an investment firm over claims that the funds in the two accounts are proceeds of crime.
Lady Justice Diana Kavedza allowed the application by the Assets Recovery Agency to retain the money belonging to the company pending a hearing for the forfeiture of the assets.
In its submissions to the court, ARA disclosed that it was investigating the firm’s transactions which it claimed were linked to money laundering activities.
The court while imposing the orders, prohibited the company from transacting, withdrawing or transferring the money in either of the accounts until the case is heard and determined.
The Milimani Law Courts building which hosts the High Court
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Office of the Registrar High Court
According to Lady Justice Kavedza, failure by the respondents to heed the orders, would render them liable for contempt of court and attract a six-month jail term.
“That the preservation orders be and are hereby issued prohibiting the respondents, their employees, agents, servants or any other persons acting on their behalf from transacting, withdrawing, transferring, and/or dealing in any manner however,” the court stated.
The court also ordered the money be frozen for ninety days and further directed the matter be heard on November 27 this year.
“That the matter shall be mentioned on November 27 2024 before the presiding judge. Given under my hand and the seal of the Honorable Court this August 27, 2024,” Justice Kavedza noted.
The court’s decision comes amidst the government’s effort to curb money laundering activities as it seeks to get out of the Financial Action Task Force (FATF)’s grey list.
A grey list outlines countries under increased monitoring by the Financial Action Task Force over weaknesses in failing to enforce anti-money laundering regulations.
In an analogous situation on August 31 this year, a court in Nairobi ordered a Pan-African payment solutions firm to surrender more than Ksh62 million to the government over claims that the funds were proceeds of crime.
Justice Francis Gikonyo in his ruling found the company’s directors guilty of engaging in money laundering. The firm was thus ordered to surrender the money to the Assets Recovery Agency.
The National Treasury building in Nairobi County.
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National Treasury
