The Treasury Puts Measures To Curb Money Laundery Trough Car Dealers

Car dealers will be required to reveal the identity of buyers and their sources of income if Treasury proposals seeking to seal loopholes for the money laundering and flow of illicit money are adopted.The Treasury also wants the source of cash for owners of car dealers vetted, warning that that weak regulation of the used car market is making the business attractive to drug dealers and fraudsters.

Treasury Cabinet Secretary Ukur Yatani is seeking a review of the law to allow filing of transactions in the used car market with the Financial Reporting Centre (FRC)—which is mandated to track illicit cash.

The review will see second-hand motor vehicle dealers designated as non-financial reporting institutions, together with entities and professionals such as casinos, accountants and real estate agents.There will be more scrutiny on the source of cash that car dealers deposit in banks to curb money launderers from using them as front companies that can claim the cash as legitimate business proceeds.Car dealers will be obligated to disclose the names, addresses, date of birth, ID number and occupation of buyers as well as date of transaction and amount involved, among others.

This is among the government intervations to curp the raise of cases of money laundering in the country.The government will also work closely with the Director of Criminal investigation officeslrs to ensure that all the criminal of illict money are taken into account.The interior and Coordination of National government cabinet secretary Dr Fred Matiang’i had warned on the raise of money laundering criminals in our country especially during this campaign period.