Financial Crime World

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KENYA’S AML CFT REGULATORY UPDATES: CBK LAUNCHES GUIDELINE ON ANTI-MONEY LAUNDERING AND COMBATING THE FINANCING OF TERRORISM

The Central Bank of Kenya (CBK) has issued a guideline on anti-money laundering and combating the financing of terrorism, aimed at strengthening the country’s financial sector integrity and enhancing safety and security.

Implementing International Standards

Kenya is committed to implementing international standards on tackling money laundering, terrorism, and proliferation financing as set by the Financial Action Task Force (FATF). The country’s primary legislative framework to combat these threats consists of the Proceeds of Crime and Anti-Money Laundering Act, 2009, and attendant Regulations.

CBK Mandate

According to the CBK, its mandate is to supervise and enforce compliance with AML/ CFT regulations among financial institutions under its purview. This includes:

  • Commercial banks
  • Mortgage finance companies
  • Microfinance banks
  • Money remittance providers
  • Foreign exchange bureaus
  • Digital credit providers
  • Payments service providers
  • Mortgage refinance companies

Progress in Implementing AML/CFT Measures

A recent Mutual Evaluation Report by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) highlighted Kenya’s progress in implementing AML/CFT measures. The report noted that while there were some areas of concern, Kenya has made significant strides in strengthening its AML/CFT system.

National Risk Assessment Report

The CBK has also launched a National Risk Assessment Report, which details the country’s specific risk profile and corresponding strategy to mitigate identified risks. The report is the output of a self-assessment process involving both public and private sectors.

Recent Updates

  • The 1267 Committee has maintained a list of individuals and groups involved with Al-Qaeda.
  • The FATF has identified high-risk jurisdictions that pose significant strategic deficiencies in their regimes to counter money laundering, terrorist financing, and financing of proliferation.
  • The CBK has issued guidelines on enhanced due diligence measures for high-risk countries.

Conclusion

These updates demonstrate Kenya’s commitment to implementing international standards and strengthening its financial sector integrity to combat money laundering, terrorism, and proliferation financing.