Regulation 29 of the Nairobi International Financial Centre (NIFC) Regulations, 2021, introduces the concept of restitution orders, a mechanism designed to address potential contraventions and provide remedies in response to investigations or legal proceedings.
This article explores the provisions outlined in the regulation, highlighting the role of restitution orders in ensuring financial integrity within the NIFC.
Restitution Orders: A Remedial Framework
Triggering Conditions
Restitution orders come into play when either the Authority is conducting or has conducted an investigation into the acts or omissions of a person that may constitute a contravention, or when proceedings have been instituted against a relevant person for an alleged contravention.
Court Application
Restitution orders can be sought through a court application initiated by the Authority or any aggrieved person. This legal recourse ensures a fair and impartial process for addressing potential contraventions.
Nature of Restitution Orders
Restitution orders encompass a range of measures aimed at preventing the disposal or dealing with assets linked to the alleged contravention. These measures include:
(a) Restraining the relevant person from paying, transferring, disposing of, or otherwise dealing with assets.
(b) Restraining any person holding assets on behalf of the relevant person from dealing with those assets.
(c) Prohibiting the relevant person or any other party from taking or sending assets out of the country.
(d) Appointing a receiver or receiver manager with specified powers over the property of the relevant person.
Implications for Financial Compliance
Asset Protection
Restitution orders aim to protect assets associated with potential contraventions, ensuring they are not disposed of or dealt with in a manner that may hinder regulatory proceedings.
Preventive Measures:
The orders serve as preventive measures by restricting the movement and handling of assets, mitigating the risk of further financial misconduct.
Receiver Appointment
The court’s authority to appoint a receiver or receiver manager provides a robust mechanism for managing and safeguarding the relevant person’s property during legal proceedings.
Legal Oversight:
The court’s involvement in the restitution process ensures a legal and transparent framework, providing oversight and due process in addressing alleged contraventions.
Conclusion
Regulation 29 establishes the framework for restitution orders, reinforcing the commitment of the NIFC to address potential contraventions promptly and fairly. These orders, with their comprehensive measures, contribute to the financial integrity of the NIFC by preventing the inappropriate handling of assets associated with alleged contraventions. The regulatory framework underscores the importance of a transparent, accountable, and compliant financial environment within the Nairobi International Financial Centre.
