A forex bureau in Nairobi. FILE PHOTO | NMG
I would like to respond to an article titled “Forex bureaus a conduit for money laundering” published in the June 29,2018 edition of the Business Daily.
Forex
bureaus have legally operated in Kenya since 1995 while Money
Remittance Providers have been in operation from 2013 when the banking
act was amended to incorporate their activities. Among the pioneer
remittance providers are former Forex Bureaus who chose to exploit the
emerging business opportunities. These bureaus and remittance companies
are licensed and regulated by Central Bank of Kenya (CBK).Contrary to
the erroneous and misleading heading of the referenced article, our
members comply fully with all legal and regulatory requirements
evidenced by their continued business operations for over two decades.
At
least once a year, they are subjected to vigorous evaluation of their
operations to gauge their compliance with all legal and regulatory
requirements. This assessment includes Anti-Money laundering (AML) and
Countering Financing of Terrorism (CFT) procedures. All our members are
‘reporting entities’ and registered with the Financial Reporting Centre
(FRC).
As reporting entities they regularly submit
reports, including suspicious transactions to the FRC. As an
Association, we are at the forefront in combating money laundering and
financing of terrorism and have conducted training for our members on
the same. As a result, our members are well versed on the vexing issue
of combating money laundering. Further, all our members are signatory to
our ethical code of conduct.
As members of the Kenya Private Sector Alliance(Kepsa), we are
also at the forefront in fighting corruption in the private sector.
This
sub-sector made up of our members, significantly contribute to
socio-economic development by way of providing Forex and Remittance
services delivered through strategically located and easily accessible
outlets, offering efficient customer service, competitive exchange
rates, source of livelihood for thousands of households through direct
and indirect employment of employees, suppliers and service providers,
short term supply of Forex for Banks and source of revenue for the
government through licensing fees and taxes and compliment tourism and
hospitality industry.
The overall economic benefit from
multiplier effect is substantial. The sector has recorded growth in
terms of outlets, capacity to handle large volumes and footprints in
major urban centre due over two decades of existence, growth and
investment in tourism, hospitality sector and diaspora remittances.
Therefore,
this growth is normal and should not be viewed in negative light. We
also share the concerns and frustrations of the article author on
economic crimes and the need to fight corruption as a society.
Corruption
distorts the economy and affects all Kenyans including our members
negatively. Our members are doing their part in fighting corruption by
adhering to the strict laws and regulations on reporting of suspicious
and cash transactions.
We are of the view that better
regulatory compliance and enforcement can only be achieved through
concerted efforts by all stakeholders, synergy and coordination of all
enforcement Agencies and public buy-in. The media should take the lead
role in championing this crucial public buy-in, through dissemination of
accurate information.
This is why we take issue with
the erroneous, prejudiced and misleading article and state the correct
position that Forex Bureaus and money remittances are in terms of
ownership, employment and footprints representative of the face of the
country.
Our members are therefore not conduits for
money laundering but significant contributors to socio-economic
well-being of the country. As an Association, we subscribe to an open
door policy and invite all interested parties to visit our offices
whenever information on our members operations is required.
Mohamed Nur Ali, CEO, Kenya Forex & Remittance Association.
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