Effects Of Multi-Agency Approach In Combating Money Laundering By Selected State Agencies In Nairobi, Kenya

Abstract

The menace of money laundering is a universal problem that continues to adversely affect the security of states in many parts of the world. Despite Kenya adopting a multi-agency approach to tackle financial crimes in 2015, the nation’s overall money laundering threat is assessed as medium with a potential for increase while the nation’s vulnerability to money laundering is assessed as medium high. The purpose of the study was to examine the effects of Multi-Agency approach in combating money laundering by selected state agencies in Nairobi, Kenya. The following objectives guided the and study; to find out the models of cooperation and coordination amongst selected state agencies involved in combating money laundering, to determine the effects of resource allocation to selected state agencies involved in combating money laundering and to establish the effects of training and capacity-building of Multi-Agency teams involved in combating money laundering. The study adopted descriptive research design and was anchored on securitization and institutional theories. The target population comprised of 383 personnel drawn from Ethics and Anti- Corruption Commission, Kenya Revenue Authority, Financial Reporting Centre, Assets Recovery Authority, National Intelligence Service, and Directorate of Criminal Investigations. Yamane’s formula was used to arrive at a sample size of 195 personnel while stratified random sampling was adopted to ensure that the sample is representative of the various subgroups within the population. Reliability of research instruments was estimated by administering the instruments to a sample of 20 respondents who did not form part of the final study. Questionnaires were used for data collection. Analysis of qualitative data was conducted in a continuous manner, where in themes and subthemes were identified as they emerged while quantitative data was analyzed using both descriptive and inferential statistics. The findings were displayed using frequency tables, charts, graphs, and percentages. Findings indicated that there is positive association between multiagency approach and combating money laundering in Nairobi, Kenya. The study recommended that the multiagency framework be entrenched in law so as to reduce red tape, mistrust and competition among participating agencies, allocate more financial and technological resources and to ensure a continuous training regime so that members of the multiagency team are up to date on new trends of money laundering.