on the economy would be severe : the goldenberg scandal is a cautionary tale. despite the pronounced good intentions of the architects, the goldenberg scandal devastated the economy to the weakest it has ever been. as much as 25 percent of gdp was looted, gdp growth fell to its lowest in kenya ’ s history, inflation surged to an all - time record of 61. 5 percent in january 1994, treasury bill rates rose to a record 85 percent in july 1993, and the exchange rate depreciated by 142. 6 percent between december 1991 and december 1993. further, the banking sector weakened significantly and several banks collapsed. the poor and vulnerable persons were hit hard, as the price of essential commodities rose significantly. allowing illicit funds to move back freely will have comparable effects. hon. members, i am about to finish. as i mentioned earlier, these matters have been brought before the courts for determination. a petition was filed on november 30, 2018 ( high court of kenya at nairobi constitutional petition no. 426 of 2018 ) challenging section 65 of the finance act 2018 that introduced section 33 ( c ) of the banking act. the attorney general is the first respondent and the national assembly is the second respondent, while the central bank of kenya is the first interested party. the high court under its special constitutional jurisdiction under article 165 ( 2 ) ( d ) will determine the matter and give an interpretation. the various parties have filed their submissions and the matter is scheduled for hearing on march 29, 2019. we await a determination by the court. i thank you for your attention.

njuguna ndung ’ u : brief remarks on kenya ’ s anti - money laundering and combating the financing of terrorism ( aml / cft ) regime remarks by professor njuguna ndung ’ u, governor of the central bank of kenya, at the antimoney laundering ( aml ) amlock event, nairobi, 28 october 2014. * * * mr. sandeep khapre, group ceo of bdo east africa ; chief executive officers of commercial banks and other financial institutions ; distinguished ladies and gentlemen : i am indeed honoured to be with you at this important event convened by bdo and 3i infotech. before i make my remarks allow me to thank the management of bdo for inviting me to this conference as a guest speaker. this event will showcase one of the globally known anti - money laundering solutions “ amlock ” which is offered by 3i infotech. i have also been made aware that amlock has been implemented by more than 80 clients in over 20 countries across the globe that also includes some of the kenyan banks. ladies and gentlemen ; as you may be aware, kenya ’ s anti - money laundering and combating the financing of terrorism ( aml / cft ) regime since june 2009 had been under review by the international cooperation review group ( icrg ). kenya was initially referred to the icrg for being a high risk area / jurisdiction and the absence of anti - money laundering and terrorist financing laws. over time kenya has addressed the deficiencies that led to the financial action task force ( fatf ) review process. some of the measures that have been undertaken include : enactment and amendments of the proceeds of crime and anti - money laundering act ( pocamla ), 2009 and its regulations – which among other issues provides for the criminalization of money laundering, establishment of an independent institution responsible for aml / cft issues – the financial reporting centre ( frc ). the frc ’ s objective among others includes assisting in the identification of proceeds of crime and the combating of money laundering. enactment of the prevention of terrorism act ( pota ), 2012 and its regulations – which among other issues provides for the criminalization of terrorism financing and the mechanism for implementing united nations security council resolutions with regard to terrorism financing. in may 2014, kenya underwent an onsite assessment by the africa / middle east regional review group to ascertain the extent to which the country had addressed aml / cft identified deficiencies