Did you know that public officers seeking to operate bank accounts outside Kenya are required get clearance from the ethics watchdog in compliance with law?
The law demands that state or public officers apply for clearance to the Ethics and Anti-Corruption Commission (EACC) for offshore bank accounts including those opened for temporary purposes such as facilitation of travel, education or medica treatment.
As a legal principal, "ignorance is not a defense" which means lack of knowledge or awareness of a law or regulation is not a valid excuse or justification for violating it.
It is a personal responsibility to keep abreast with laws of the land. The following are explanations on what entails an offshore bank account, why there are caveats on public officers operating them and penalties on breach of law.
What entails an offshore bank account?
An offshore bank account is a financial account held in a jurisdiction outside of the depositor's country of residence. In this context, it is a foreign bank account opened by or controlled by a state or public officer.
What does the law in Kenya, who is a state or public officer?
These are individuals holding various public offices at the national and county levels, as well as other positions of authority or responsibility within government institutions and bodies. They include the President, Deputy President, Governors, Members of Parliament, members of county assemblies as well as judges. Teachers employed by the Teachers Service Commission (TSC) too are public officers.
Which specific law governs on operation of off-shore bank account for individuals working in the public service?
The simple answer is Article 76(2) of the Constitution and complemented by Section 19 (4) and 52 of the Leadership and Integrity Act. It stipulates that State Officers are prohibited from opening or operating bank accounts outside Kenya without prior approval from the Ethics and Anti-Corruption Commission (EACC). This provision aims to ensure transparency, accountability, and integrity in the financial affairs of State Officers.
Why is prior approval from the Ethics and Anti-Corruption Commission (EACC) required for opening offshore bank accounts?
The requirement for EACC approval serves multiple purposes. Firstly, it acts as a safeguard against potential misuse of public office for personal financial gain. By seeking approval, State Officers demonstrate transparency and accountability in their financial dealings. Secondly, it helps prevent illicit financial flows and money laundering, as offshore accounts can sometimes be used to conceal ill-gotten wealth or engage in corrupt practices.
What are the implications for State Officers who contravene these regulations?
State Officers found in breach of Article 76(2) of the Constitution and Section 19 of the Leadership and Integrity Act may face legal consequences and disciplinary action. This could include investigations by the EACC, sanctions such as fines or removal from office, and in severe cases, criminal prosecution. The regulations underscore the seriousness with which Kenya addresses issues of integrity and ethical conduct among its public officials.
What are the penalties for breach of law on operating foreign bank accounts for public officials?
A state or public officer shall be liable to imprisonment for a term not exceeding five years or a fine not exceeding five million shillings or both.
How does the enforcement of these regulations contribute to Kenya's governance and anti-corruption efforts?
By enforcing strict regulations on offshore bank accounts for State Officers, Kenya strengthens its governance framework and anti-corruption measures. Upholding integrity and transparency in financial matters is essential for fostering public trust in government institutions and ensuring that public resources are utilised for the benefit of the citizens. Moreover, it sends a strong message that Kenya is committed to combating corruption and promoting ethical leadership at all levels of governance.
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Are there any exemptions to these regulations?
While the regulations generally apply to all State Officers, there may be exceptional circumstances where offshore bank accounts are necessary for official purposes, such as diplomatic missions or international agreements. In such cases, State Officers must still obtain approval from the EACC and ensure that the use of offshore accounts complies with legal and ethical standards.
How can members of the public contribute to the enforcement of these regulations?
Members of the public play a crucial role in holding State Officers accountable for their actions. They can report any suspicions or instances of non-compliance with offshore bank account regulations to relevant authorities such as the EACC or other oversight bodies. Public scrutiny and engagement are vital for maintaining the integrity of Kenya's governance system and combating corruption effectively.
