The High Court on Wednesday stopped the implementation of Anti Money Laundering Act that requires lawyers to report any illegal dealings by their clients to the state.
Justice James Makau on Wednesday barred the state from implementing the Act pending the hearing of the case.
“Pending inter parties hearing, a conservatory order is hereby issued stopping any further implementation of section 2(c) and section 14 b of the proceeds of crime and anti-money laundering amendment act 2021,” Makau ordered.
Law Society of Kenya Nairobi branch and the National Assembly have also been enjoined in the case.
The case will be heard on February 22.
In the case, Lawyer Mwaura Kabata challenged the proposed law.
The Proceeds of Crime and Anti-Money Laundering (Amendment) Bill, 2021 which was assented by the President on January 3 requires lawyers to keep cash records of transactions, which are beyond Sh1 million.
He argued that the law has made them unwilling state agents and turned law offices into archives for use by the police and prosecution.
“By operation of the provisions introduced into the Act, lawyers are impeded in their duties and their service delivery to their clients, as the provisions manifestly erode advocate-client privilege,” he said.
Kabata further says that impugned provisions clash with the various code of conduct obligating advocates to abide by the advocates-client privilege.
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