AML Guidelines for Businesses in Kenya: Key Changes to Anticipate

The PwC Kenya Financial Crime Unit has released a newsletter highlighting key changes in the Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) Amendment Act 2023, which was assented to law by the President on September 1, 2023. The newsletter focuses on significant amendments that businesses operating in Kenya should be aware of.

Key Changes

• Expanded Scope: Money laundering now includes terrorism and proliferation financing.
• Increased Mandates: Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT) and Countering Proliferation Financing (CPF) mandates for supervisory bodies have been increased.
• Risk-Based Approach: Financial institutions are now required to adopt a risk-based approach to identifying money laundering/terrorist financing and proliferation financing risks.

Reporting Institutions

• Due Diligence Scope: Reporting institutions must increase their due diligence scope to include materiality and risk factors when dealing with individuals and countries.
• Suspicious Transactions Reports: The Law Society of Kenya is now recognized as a self-regulatory body responsible for receiving suspicious transactions reports from law firms and forwarding them to the Financial Reporting Centre (FRC).

Financial Reporting Centre (FRC)

• Operational Independence: The FRC has gained operational independence from the State, which is embedded in the State Corporations Act.

Compliance Requirements

• Beneficial Ownership Requirements: Companies and Limited Liability Partnerships must comply with increased beneficial ownership requirements by October 31, 2023.
• Definition of Economic Crime: The definition of economic crime under the Anti-Corruption and Economic Crimes Act now includes money laundering activities.

Recommendation

To fully understand these changes and their implications on businesses operating in Kenya, we recommend downloading the full publication below.