Flaqo reveals his account was frozen after cashing one of his highest paid gigs

Popular comedian and content creator Erustus Ayieko Otieno, popularly known as Flaqo, recently shared a surprising story during an interview with Iko Nini podcast, hosted by Mwafreeka.

Flaqo, known for his humorous skits, revealed that his bank account was once frozen after cashing in one of his highest paid gigs.

The content creator, who has achieved success by working with various brands, said that the incident caught him by surprise.

The gig in question was a corporate project that Flaqo had done in collaboration with the Communications Authority of Kenya, where he appeared in advertisements.

According to Flaqo, he was paid a hefty sum of Sh2 million for his services, which was a significant amount for him.

"Before nizoeane na pesa completely, nikafanya deal ya Communications Authority of Kenya, hiyo ndio ikaniambia ni cool down na nafaa kuwa msee reasonable...Ilikuwa mita mbili.

(Before I got used to money completely, I struck a deal with the Communications Authority of Kenya. That was a wake up call to be reasonable with money...it was about Sh2 million. he said.

However, when the money was finally deposited into his bank account, he was taken aback to find out that his account had been frozen.

READ: Flaqo - Embarrassment that triggered me to hit the gym

Flaqo recounted that he received a call from his bank, asking him to explain the source of the funds.

"Kitu ilihappen, walinilipa hivi, bank ikafreeze account yangu. Ikabidi niende bank wakaona mimi ni flaqo, sawa inamake sense. Hiyo ndio time nikaanza kuwa na financial discipline.

(What happened, immediately I was paid the bank froze my account. I had to go to the bank and they recognised me and saw that the transaction made sense)," he said.

Kenya's Proceeds of Crime and Anti-Money Laundering Act

In recent years, Kenya has been taking significant steps to tighten financial laws and increase scrutiny in payments from government agencies.

The Proceeds of Crime and Anti-Money Laundering Act, serves as the most comprehensive piece of anti-money laundering (AML) legislation in the country.

Government agencies in Kenya are now subject to increased scrutiny and stricter financial regulations.

Payments from government agencies are closely monitored by the Financial Reporting Centre, which analyzes transactions for any signs of suspicious activity that may indicate money laundering or other illegal activities.

This includes transactions involving large sums of money, unusual patterns of transactions, or transactions involving high-risk individuals or entities.

Financial institutions are required to report any suspicious transactions to the FRC, and failure to do so can result in severe penalties.

In 2020, a local bank was fined Sh149. 5 million for handling Sh639 million from the NYS scandal suspects. Another leading bank was ordered to pay Sh89. 5 million for handling Sh886 million of the suspicious cash.

READ: Gov't to track accounts of high-ranking politicians and allies

Financial institutions are also required to report any single transaction or series of related transactions above Sh1 million.

This includes both deposits and withdrawals made by individuals or entities, and applies to both Kenyan shillings and foreign currencies.