This archive report was first published on 13 November 2019.
On November 13, 2019, the Kenyan government launched a crackdown on illicit cash flow through betting by requiring betting companies to report suspicious transactions and punters to the government.
The new regulations, which came into effect from July 1, 2019, mandate betting companies to report transactions above Sh1 million ($10,000) or suspicious bets to the Betting Control and Licensing Board (BCLB).
The move is aimed at combating money laundering and illicit cash flow, which the government believes has become a major concern in the country.
According to the government, the rapid growth of the gaming industry has seen it achieve a combined revenue of Sh204 billion, making it an attractive market for criminals seeking to launder dirty money.
Executives of betting firms have admitted that criminals can feed their illicit money into their betting wallets, bet a small share of the cash before cashing out with the vast majority of the cash.
"That's what turns dirty money clean," said the CEO of a betting firm, adding that a number of suspect accounts have been frozen and details forwarded to the BCLB.
The government has also ordered Safaricom to stop processing payments for sports betting companies, effectively grounding their operations.
The move is part of a broader effort by the government to add more businesses and professions to the list of entities with reporting obligations.
Lawyers, employees of accounting firms, and trusts holding assets for wealthy people will be required to report suspicious trades and transactions to the Financial Reporting Centre (FRC) once fresh changes to the law are brought to Parliament.
