Individuals and corporate bodies will be fined Sh5 million and Sh25 million respectively if found guilty of money laundering.
This follows the enactment of the Proceeds of Crime and Anti-Money Laundering (Amendment) Bill 2017.
The bill was signed into law on Friday by President Uhuru Kenyatta who termed it as tough legislation aimed at combating economic crimes.
"This is a major tool in our sustained efforts to fight corruption. It means that no proceeds of theft and corruption are beyond the reach of the state," Uhuru said.
The President, in a statement, said the
amended legislation introduces fresh punishments for economic crimes.
"In addition to
the identification, tracing, freezing, seizure and confiscation of the proceeds of crime,
the new law imposes stiff penalties on culprits," he said.
Those who fail to pay the penalties will be charged Sh10 million for at least 180 days that they default payment of such fines.
Uhuru said the
new legislation formalises
the establishment of the Assets Recovery Agency.
The agency will handle all cases involving the recovery of proceeds of crime or benefits accruing from money laundering.
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Meanwhile, the government is set to get Sh46.2 billion from the Consolidated Fund for use before the lapse of the current fiscal year.
This was effected after the President signed the Supplementary Appropriation Bill, 2017, therefore authorising the release of the funds.
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Deputy President William Ruto, National Treasury CS Henry Rotich, Majority Leader Aden Duale and Solicitor General Njee Muturi witnessed the signing of the two bills.
The legislations were presented to the President at State House, Nairobi, by National Assembly Speaker Justin Muturi.
