I’ll tackle money laundering and terrorism financing – CBK deputy governor nominee
By Maureen Kinyanjui |
Arita, a seasoned financial expert, outlined his plans to establish a dedicated team within CBK focused solely on addressing these issues.
Gerald Arita, the nominee for the Central Bank of Kenya (CBK) deputy governor, has committed to tackling money laundering and countering the financing of terrorism if confirmed to the position.
During his vetting by a joint committee of Parliament on Monday, Arita, a seasoned financial expert, outlined his plans to establish a dedicated team within CBK focused solely on addressing these issues.
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"For the Central Bank, one of the issues that we want to do now is to have a stand-alone team that deals with money laundering and countering the financing of terrorism," Arita said, noting the need for specialised attention to these persistent challenges.
He explained that separating these functions from the broader task of prudential supervision would allow the bank to address financial crimes more effectively “as opposed to where we've put them together, that they do what we call prudential supervision, checking on the stability of the financial sector as well as money laundering."
Arita's nomination was reviewed by a joint committee of the Senate's Finance and Budget Committee and the National Assembly's Finance and Planning Committee.
The panel, co-chaired by Mandera Senator Ali Roba and Molo MP Kiami Kuria, sought clarification from Arita on how he plans to collaborate with CBK Governor Kamau Thugge to implement banking sector reforms.
One key issue raised during the vetting was Arita's approach to fostering a smooth working relationship with Governor Thugge.
Effective teamwork
Kakamega Senator Boni Khalwale pressed the nominee on how he would ensure effective teamwork at the Central Bank.
In response, Arita emphasised the importance of upholding the laws and regulations governing financial institutions to curb malpractices, including money laundering.
"I think 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," Arita said.
He stressed the need for strict enforcement of financial regulations to ensure that banks operate with full transparency and accountability.
Arita, a professional accountant, has an extensive career with CBK, having joined the bank in 1988 as a management trainee.
Over the years, he has held several senior positions, including manager of the Currency Division, where he was responsible for the ordering, storage, and distribution of currency to commercial banks.
Arita also served as head of the Mombasa branch human resources department and later led inspections of financial institutions as part of CBK's oversight functions.
As a former head of CBK's Bank Supervision Data Bank, Arita managed the division responsible for storing and analysing commercial banks' financial data.
His knowledge of the inner workings of CBK and the banking sector is expected to be instrumental in his efforts to combat financial crimes and enforce stronger regulatory measures across the industry.
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