BY SAM ALFAN.
A state agency wants more than Sh63 million belonging to a payment solution firm forfeited to the government, as the funds in the two accounts are linked to proceeds of crime.
Assets Recovery Agency (ARA) says in a petition to the High Court that the directors of Virtual Financials International Limited failed to explain the source of the millions, making the funds liable for forfeiture to the state.
The funds were frozen last year for 90 days, pending the filing of the forfeiture petition. According to ARA, investigations established that funds are proceeds of illegitimate activities.
“Unless this court grants the orders sought, the respondents shall illegitimately enjoy the economic advantage derived from the commission of crimes and acquisition of proceeds of crime,” ARA said in the application.
The agency informed the court that the investigations into the activities of the firm established that funds were proceeds of illegitimate activities.
The money is being held in two bank accounts at Equity Bank- one account holds $16,661 while the other holds Sh60.7 million.
Evidence presented in court showed that the agency was informed on May 10 that the two accounts were holding funds suspected to be proceeds of crime. The agency started an inquiry into the legitimacy, source and destination of the money.
“Investigations conducted by the agency revealed money laundering schemes conducted by the respondent, its directors and associates, rendering the above funds proceeds of crime and liable for forfeiture,” the agency said through Mohamed Adow.
He said the investigations further revealed that the cash deposits were unlawfully acquired, hence proceeds of crime.
“As stated, the investigations in this matter have established that the funds are proceeds of crime and the accounts were used to execute money laundering schemes in an effort to disguise the source, movement and disposition of the funds,” he said.
