Towards a harmonised anti-money laundering approach in the East African Community

Abstract

Article 5 of the Treaty for the Establishment of the East African Community (EAC) sets out four main stages of integration, namely, a customs union, a common market, a monetary union, and ultimately a political federation. Implementation of each of the stages of integration blurs national boundaries, paving way for free movement of persons, goods, services, and capital leading to increased trade and economic development. However, without proper structure to monitor cross border movements, the integration creates an avenue for criminals to move proceeds of crime freely within the region. For instance, several reports by the Sentry revealed that significant proceeds of crimes from South Sudan are laundered and invested in Kenya and Uganda. Despite these revelations, the
EAC Partner States are yet to take joint measures to combat money laundering (ML). Further, the existing national anti-money laundering (AML) laws are divergent and characterised by enforcement deficits. Against this background, this paper makes a case for the need to jointly combat ML and its predicate offences among the Partner States and at the EAC level. Further, it audits the AML
statutes of EAC Partner State, highlighting the discrepancies in the criminalisation of ML and the sanctions regime. The paper calls for the adoption of a more harmonised and proactive AML response within the EAC.