Functions Of Asset Recovery Agency In Kenya. Asset recovery, also known as investment or resource recovery, is the process of maximizing the value of unused or end-of-life assets through effective reuse or divestment. While sometimes referred to in the context of a company undergoing liquidation, Asset recovery also can describe the process of liquidating excess inventory, refurbished items, and equipment returned at the end of a lease.
Asset recovery can also refer to the task of recovery of assets that have been wrongfully taken either stolen, fraudulently misappropriated or otherwise disposed of to remove them from their rightful owner. Asset recovery has three main elements—identification, redeployment, and divestment. Specialized asset recovery software may assist any of these steps.
Identification
Because unproductive assets cost money, it is important to classify them as such by investment recovery personnel. Later, a decision can be made whether to redeploy or divest. Surplus assets could be in any form, including fixed equipment, mobile equipment, buildings, or land. Idle or surplus assets can be either capital assets or non-capital surplus.
Redeployment
Redeploying an idle asset to another part of an organization is often the most productive use for the asset. Asset redeployment also saves the organization money by eliminating the need to purchase a new asset at current market rates. For effective reuse, another part of the company needs to require an asset of that kind. It must also be practical to transfer and deploy the asset at the new location.
One form of internal redeployment is cannibalization of usable spare parts from one asset to another. For example, a taxicab company has two non-running cabs with different non-working parts in each. By taking a working part from one non-running cab and placing it in the other, the company has reduced its number of non-running cabs by 50%.
Disposition
Disposition of surplus or idle assets is the process of either selling, scrapping, recycling, donating, or disposing an asset. The process involves removing the asset from an organization’s books. When this is done effectively, the organization obtains capital that can be placed back into the business. In addition, a good asset sale produces revenue and boosts profits. Donations also build goodwill and deliver tax benefits. The type of disposition method employed will depend on the type of asset, its fair value, and market demand.
Asset Recovery Agency Mandate
The Asset Recovery Agency is a body corporate established under Section 53 of the Proceeds of Crime and Anti-Money Laundering Act No. 9 of 2009 whose mandate is the identification, tracing, freezing, seizure and confiscation of the proceeds of crime.
The Proceeds of Crime and Anti-Money Laundering Act empowers the Director, Assets Recovery Agency, to make ex parte applications for preservation where there are reasonable grounds to believe that the property concerned has been used or is intended for use in the commission of an offense or is a proceed of crime.
Here are the Functions Of Asset Recovery Agency In Kenya
- The agency identifies and investigates the proceeds of crime.
- It traces proceeds of crime and money laundering.
- It freezes assets suspected to be proceeds of crimes held by persons under investigation or prosecution.
- It administers the criminal assets recovery fund. The Criminal Assets Recovery Fund is responsible for the overall management of recovered assets.
- Seizure and recovery of proceeds of crime.
- It manages all preserved and recovered assets through the assets management department.
Frequently Asked Questions
What is the Asset Recovery Agency(ARA)?
The Asset Recovery Agency is a body corporate established under Section 53 of the Proceeds of Crime and Anti-Money Laundering Act No. 9 of 2009with perpetual succession and a common seal, and shall in its corporate name, be capable of— (a) suing and being sued; (b) holding and alienating movable and immovable property; (c) borrowing and lending money; (d) doing and performing all such other acts or things as may be lawfully done by a body corporate.
What is a body corporate?
A body corporate is an organization with its own legal rights and responsibilities.
Who is the head of ARA?
ARA is headed by the Director Asset Recovery Agency who is appointed under Section 53(2) of the Proceeds of Crime and Anti-Money Laundering Act No. 9 of 2009.
What is the work of ARA?
ARA is the government agency charged with the identification, tracing, freezing, seizure and confiscation of the proceeds of crime.
Where are the offices of ARA?
The Agency is based at UAP Old Mutual Towers along Upper Hill Road Nairobi, on 22nd Floor.
Is Asset Recovery Agency part of the Unclaimed Financial Assets?
No. The Unclaimed Financial Assets Authority (UFAA) is an Authority created under the Unclaimed Financial Assets Act, No. 40 of 2011 to administer unclaimed financial assets. The primary mandate of the Authority is to receive Unclaimed Financial Assets from the holders of such assets, safeguard and reunite the assets with their rightful owners. UFAA can be reached at https://portal.ufaa.go.ke
Does the Agency cooperate with other agencies in carrying out its functions?
Yes. In the performance of its functions, ARA is required by law to cooperate and collaborate with other agencies. Some of these agencies include the Office of the Attorney General and the Department of Justice, the Directorate of Criminal Investigations, the Financial Reporting Centre, National Police Service, Kenya Revenue Authority, Parliament among others.
How do I contact the Agency?
The agency can be reached via email through info@assetsrecovery.go.ke
If contacting us by post kindly address as follows:
The Director
Assets Recovery Agency
P.O. Box 52420-00100
Nairobi, Kenya
