Gerald Arita, the nominee for Deputy Governor of the Central Bank of Kenya (CBK), has committed to combating money laundering and the financing of terrorism if approved. Speaking before the joint committee of Parliament for vetting, Arita outlined plans to create a dedicated team to specifically handle these critical issues. His proposal highlights the establishment of a standalone team that would focus solely on money laundering and terrorism financing, setting it apart from other responsibilities such as prudential supervision, which ensures the stability of the financial sector.
Arita, an experienced financial expert with a long career at CBK, expressed that this move is necessary to strengthen the country’s fight against illicit financial flows. He emphasized that having a separate, focused team would significantly improve the efficiency of efforts to curb money laundering, a vice that has plagued both the global and Kenyan financial systems for years.
Currently, money laundering operations are handled alongside other regulatory functions within the CBK. However, Arita’s vision aims to streamline this process by having a specialized unit dedicated exclusively to ensuring compliance with anti-money laundering (AML) and combating the financing of terrorism (CFT) laws. He believes that such a reorganization will provide better oversight and quicker responses to financial crimes, ultimately making the financial sector more secure and transparent.
The nominee’s proposal comes at a time when Kenya is under scrutiny from international bodies like the Financial Action Task Force (FATF) regarding the effectiveness of its anti-money laundering framework. Arita’s proposed reforms would aim to strengthen the country’s financial integrity and compliance with global standards.
During his vetting session, Arita was questioned by lawmakers about his plans for collaborating with CBK Governor Kamau Thugge. Kakamega Senator Boni Khalwale asked Arita how he would ensure a smooth working relationship with his boss to foster the necessary reforms in the banking sector. In response, Arita assured the committee that effective teamwork and mutual respect would be fundamental to the success of the reforms.
Arita acknowledged the challenges of working within a complex financial system but expressed confidence in his ability to enforce the laws that govern the sector. He explained that a major part of his strategy would be to ensure strict adherence to the laws and regulations that safeguard the banking sector from corruption and other financial crimes. “We have to check whether institutions are adhering to the anti-money laundering laws that have been put in place to guard against money laundering, corruption, and misuse of funds,” he remarked.
The nominee’s background and experience at CBK further bolstered his credentials. Arita has been with CBK since 1988, joining the institution as a management trainee and rising through the ranks over the years. His roles included serving as a manager in charge of the Currency Division, where he oversaw the issuance and distribution of currency to commercial banks. He also managed human resources at the Mombasa branch and later served as an inspector and leader of the CBK’s Bank Supervision Department. In these roles, he was responsible for inspecting commercial banks and ensuring their compliance with regulatory requirements.
One of his most notable achievements was heading the CBK’s Bank Supervision Data Bank, which is tasked with managing financial data from commercial banks and providing financial analysis reports. His wealth of experience in regulatory functions positions him well to tackle the challenges of combating money laundering and improving the overall financial governance in Kenya.
The joint parliamentary committee, co-chaired by Mandera Senator Ali Roba and Molo MP Kiami Kuria, will continue deliberations before making its final recommendation on Arita’s nomination. His appointment as Deputy Governor of CBK would be pivotal in enhancing the institution’s role in maintaining financial stability and tackling financial crimes in Kenya.
Arita’s vision for a dedicated anti-money laundering unit at the CBK reflects his commitment to building a robust financial system that adheres to international standards and ensures the integrity of the banking sector in Kenya.
