Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) 2023
The government has introduced amendments to the Anti-Money Laundering and Combating of Terrorism Financing Laws, aimed at strengthening measures against money laundering, terrorism financing, and countering proliferation financing.
Licensing and Permits
Section 196(2)(c) of the Act states that a licence shall be granted upon payment of a fee and compliance with certain conditions. Section 196(4) has been amended to replace “registration” with “licence”, and “registered” with “licenced”.
- Key changes:
- Replacement of “registration” with “licence”
- Replacement of “registered” with “licenced”
Penalties for Non-Compliance
Section 196C of the Act provides penalties for violations relating to money laundering, terrorism financing. A person who violates or fails to comply with the provisions of this section shall be liable to a penalty not exceeding twenty million shillings.
- Key penalty: Up to twenty million shillings
New Provisions
A new section 196B has been inserted, giving the Authority powers to regulate, supervise and enforce compliance for anti-money laundering, combating the financing of terrorism and countering proliferation financing purposes by all reporting institutions regulated and supervised by the Authority.
- Key provision: Regulation, supervision, and enforcement of compliance
Section 196D provides that all persons subject to this Act shall enjoy all rights and fundamental freedoms enshrined in the Constitution, unless limited to the extent specified in Article 24 of the Constitution, this Act or any other Act.
Additional Provisions
The amendments also provide for the cancellation of a licence where a default or circumstances relate to one or more parts of business carried on by the licenced person. In such cases, the Commissioner may, with prior approval of the Cabinet Secretary, license the person in respect of any part of the business and issue a new licence.
- Key provision: Cancellation of licence
The Authority shall maintain information and records on the beneficial ownership of persons whose licence is cancelled for at least five years after the date on which the licence is cancelled.
- Key requirement: Maintenance of information and records