Nairobi
Wednesday, 12 June, 2024
By Felix Mogaka
Detectives have successfully curbed the surge in money laundering cases involving fraudulent gold deals.
Director of Criminal Investigations Mohamed Amin disclosed that some of these fake gold traders have fled Kenya to neighboring countries where they continue their operations.
Amin noted that several suspects originate from mineral-rich nations, using Kenya as a transit point.
He blamed dishonest lawyers for facilitating these crimes but emphasized that the situation has improved.
“We have managed to downgrade successfully the activities of these gold scammers in Kenya so much that they have now relocated to some of our neighbouring countries,” Amin said.
He added, “Out of 71 reported cases we have identified and prosecuted 64 people. Some Kenyans and others are foreigners. In our investigations we received help from the FBI in recovery of proceeds of crime and area of social media.”
Amin explained that there was a surge in gold scam cases with fraudsters utilizing Kenya as a hub.
These scammers often work with corrupt lawyers to open escrow accounts, from which funds are quickly withdrawn.
Kenya, he pointed out, does not produce the large quantities of gold being referenced in these scams. He made these remarks at the DCI headquarters on Tuesday, June 11, during a visit by FBI director Christopher Wray.
Amin mentioned that Kenya is receiving increased support from the US in combating crime, particularly corruption.
In recent years, gold scammers have used Kenya as a base to deceive unsuspecting buyers, causing widespread concern.
Wray, addressing the gold scam issue, mentioned that many businesspeople lose millions because they fail to perform proper background checks and are unaware of the relevant laws and regulations.
He confirmed that the FBI is assisting Kenyan authorities and the broader region in tackling this issue.
“It is also a fact that the wash wash business has become one of the most prevalent transnational crimes, more often than not being orchestrated by non-Kenyans in the initial stages. Kenya, and most specifically its capital, Nairobi, comes into play due to its strategic placement as a key transit route for the precious stones from Congo and other African countries to the United Arab Emirates and the rest of the world,” Wray said.
He highlighted the ongoing partnerships, particularly through Interpol, that enable them to track criminals across member states.
“We believe that this type of fraud has more to it in the underworld of money laundering, and that’s why our concerted efforts will eventually bring it to its knees.”
During his visit, Wray also met with National Intelligence Service Director General Noordin Haji, Director of Criminal Investigations Mohamed Amin, Ethics and Anti-Corruption Commission CEO Twalib Mbarak, and Director of Public Prosecution Mulele Ingonga.
The FBI and EACC have a long-standing relationship dating back to 2001, involving training EACC investigators in undercover operations, modern investigation techniques, and the recovery of illicit assets.
In his meeting with EACC CEO Mbarak, Wray discussed collaborative initiatives to enhance law enforcement.
They focused on strengthening the partnership to combat transnational corruption and economic crimes, with the FBI committing to provide more support through training and modern investigative tools.
They also explored information-sharing mechanisms to aid in tracing and recovering assets acquired through corruption stashed abroad.
Mbarak hailed the visit as a significant milestone in their partnership, expressing confidence that with FBI support, the EACC would be more effective in investigating high-profile cases and recovering corruptly acquired assets.