US Gov’t Exposes Kenyan Lawyers, Real Estate Agents As Money Laundering Leads
According to a new study released in March 2025 by the United States Department of State’s Bureau for International Narcotics and Law Enforcement Affairs, lawyers, estate agents, and notaries are important facilitators of money laundering in Kenya.
According to the research, Kenya is aggressively attempting to enhance its financial crime prevention systems, but it still confronts substantial risks and problems.
Despite Kenya’s vow in 2024 to increase financial crime prevention measures, lawyers, estate agents, and notaries continue to hinder efforts to combat money laundering.
“Designated non-financial businesses and professions (DNFBPs), such as lawyers, estate agents, and notaries, are another avenue for money laundering,” the report stated in part.
A new report by the United States Department of State Bureau for International Narcotics and Law Enforcement Affairs (INL) classifies lawyers, real estate agents and notaries as key enablers of money laundering in Kenya.
— Cyprian, Is Nyakundi (@C_NyaKundiH) March 19, 2025
The report, released in March 2025, shows that these… pic.twitter.com/G0t4wog84i
Lawyers can be involved in money laundering, often serving as intermediaries or facilitators, consciously or inadvertently.
Lawyers help offenders acquire or sell real estate, which is a frequent way for them to conceal or legitimise unlawful funds.
Furthermore, some lawyers work with offenders to form shell corporations that only exist on paper.
These corporations can be used to conceal illegal funds while making them appear respectable.
Some lawyers also administer trust accounts or protect money launderers, so impeding efforts to combat financial crime.
In February 2024, Kenya made a high-level government commitment to improve its systems and agreed to an action plan with the Financial Action Task Force (FATF) to solve identified anti-money laundering issues.
To regulate designated non-financial businesses and professions, such as lawyers, estate agents, and notaries, a court injunction has prevented the government from requiring lawyers to report suspicious transactions.
The report also discovered that many foreign nationals, including refugees and ethnic Somali residents, use informal remittance systems.
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These included unlicensed money or value transfer services, for international transactions. Offenders may exploit these methods to facilitate quick, anonymous money transactions.
Money laundering remains a major concern, with Kenya’s proximity to Somalia attracting funds from unregulated Somali sectors such as the khat and charcoal trades.
However, according to the report, Kenya has a system in place to detect and prevent money laundering and collaborates with international bodies to enhance its processes.
The report has revealed that Kenya and the United States collaborate in investigating financial crimes, adhering to international laws and working together to combat money laundering.
US Gov’t Exposes Kenyan Lawyers, Real Estate Agents As Money Laundering Leads
