Kenya Targets Illicit Cryptocurrency Use in AML Crackdown

Kenya targets illicit cryptocurrency use with a fresh push against money laundering and terrorism financing. The country’s government recently made it clear to the United Nations that it is seriously cracking down on shady crypto platforms as part of its anti-money laundering (AML) plans in East Africa’s biggest economy.

Musalia Mudavadi, Kenya’s prime cabinet secretary, spoke straight about the efforts going on to shut down not just illicit cryptocurrency activities but also informal money transfer networks called hawala. Hawala is an underground system where money moves without formal banks, often based on trust, and it’s very common in places where banking access is limited. Unfortunately, this system has links to extremist groups like Al-Shabaab, raising concerns about funding terrorism.

During a weekend meeting in Nairobi, Mudavadi assured Natalia Gherman, a UN assistant secretary-general and head of the Counter-Terrorism Committee Executive Directorate (CTED), that Kenya has stepped up its anti-money laundering and counter-terrorism financing measures. The government has strengthened oversight agencies and teamed up with international partners to stop illegal money flows, including through cryptocurrencies, hawala networks, and cross-border crime.

Kenya targets illicit cryptocurrency use in this AML crackdown as part of a broader commitment to fight terrorism and violent extremism. Mudavadi also highlighted the growing threat of encrypted platforms, AI-driven propaganda, and social media being used to recruit, radicalize, and support terrorist activities. This shows Kenya’s awareness of how technology can be misused in modern-day security challenges.

To tackle these threats, Kenya’s National Counter Terrorism Centre is carrying out coordinated efforts across multiple agencies. They have also expanded training programs for law enforcement officers, judges, and investigative teams to better identify, stop, and bring terrorists to justice.

Kenya targets illicit cryptocurrency and other illegal financial routes while playing a major role in global counterterrorism efforts. The country actively participates in forums like the Global Counterterrorism Forum and UN initiatives against improvised explosive devices (IEDs), showing its dedication to regional peace and safety.

All in all, Kenya’s actions underline a strong resolve to protect its economy and communities from the misuse of cryptocurrency and informal money systems. This crackdown fits neatly into a larger framework of tightening financial controls and boosting security in the face of evolving threats.

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