Compliance Guide to Anti-Money Laundering (AML) Regulations in Kenya

Overview

This comprehensive guide provides an overview of the key aspects of anti-money laundering (AML) compliance in Kenya under the Proceeds of Crime and Anti-Money Laundering Act, 2009 (POCAMLA).

Registration with the Financial Reporting Centre (FRC)

• Unique Organization Number: Reporting institutions must register with the FRC within a specified timeframe to obtain a unique organization number.

Changes in Particulars

• Institutions must notify the FRC of any changes in beneficial ownership, management, or other relevant details within 90 days.
• However, changes related to the Money Laundering Reporting Officer (MLRO) must be reported within 14 days.

Annual Compliance Report

• Institutions must submit a compliance report by January 31st of each year detailing their compliance with AML regulations and internal rules.

Suspicious Transaction/Activity Reports (STR/SAR)

• Institutions must report suspicious transactions or activities to the FRC within two days, providing sufficient information and supporting documentation.

Cash Transaction Reports (CTR)

• Institutions must file reports on cash transactions equivalent to or exceeding $15,000 with the FRC by the end of each week.

Cross-Border Declarations

• Individuals conveying monetary instruments exceeding $10,000 must declare the transaction to Customs Officers, who will then submit the declaration to the FRC within five days.

Report on Customers Originating from Higher Risk Countries

• Institutions must submit a list of customers originating from higher-risk countries by January 31st of each year.

By following these guidelines, institutions can ensure compliance with AML regulations and maintain a robust reporting framework.