Politician, two Nigerians linked to frozen Sh5.6bn

Two Nigerians suspected to enjoy the backing of a powerful Kenyan politician and two Kenyans have been linked to Sh5.6 billion frozen in six bank accounts over alleged money laundering.

The billions in the accounts in Equity Bank #ticker:EQTY and UBA Bank were frozen by the High Court after the Assets Recovery Agency (ARA) applied to block the transfer or withdrawal, pending the filing of a petition to have the money forfeited to the government.

The money was wired into the country from multiple countries, including Nigeria, to three companies identified as OIT Africa Ltd, Avalon Offshore Logistics Ltd and RemiX Capital Ltd.

The ARA says the four directors of the firms—the two Nigerians and two Kenyans—shrugged off repeated summons to explain the source of the billions.

The State agency believes the two Kenyans, including one who graduated from a local public university in 2018, are fronts of the Nigerians who are suspected to have the backing of a powerful politician.

We cannot name the politician in this story for legal reasons.

Equity Bank and UBA Bank could also find themselves in trouble following revelations that the suspicious billions started flowing into the accounts in 2020.

Kenyan banks are expected to alert the Financial Reporting Centre (FRC) of suspicious transactions under anti-money laundering laws, including reporting large transactions and undertaking due diligence on customers.

The Director of Public Prosecutions (ODPP) and the Central Bank of Kenya (CBK) fined five top banks — Standard Chartered Kenya #ticker:SCBK , Equity, Diamond Trust, Co-operative Bank #ticker:COOP and KCB Group #ticker:KCB — Sh777 million for failing to report suspicious transactions in connection with the theft of funds at the National Youth Service (NYS).

The NYS scam saw dozens of senior government officials and businesspeople charged in May 2018 with various crimes.

The assets recovery unit says the probe on transactions involving the Sh5.6 billion started in February.“The agency received information on a suspected case of money laundering schemes and acquisition of proceeds of crime involving multiple money transactions conducting through the bank accounts of the Respondents in US dollars and Kenya shillings mainly from foreign jurisdiction whose source has no legitimate explanation,” the petition states.“The pattern of transaction in the accounts in issue and the activities of Respondents depict money laundering activities and this court ought to issue the orders sought.”OIT Africa had Sh4.8 billion in two Equity accounts and one in UBA. Avalon Offshore Logistics had Sh43.5 million in two Equity accounts, […]

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