Financial Crime World

Here is the rewritten article in Markdown format:

FRC Engages Reporting Institutions Directly to Combat Money Laundering

========================================================

In a bid to strengthen its fight against money laundering, the Financial Reporting Centre (FRC) has intensified its engagement with reporting institutions, urging them to comply with anti-money laundering and combating the financing of terrorism (AML/CFT) regulations.

Compliance Requirements for Reporting Institutions

Under the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA), reporting institutions are required to:

  • Obtain full particulars of a customer’s identity
  • Have a sound knowledge of the purpose for which the customer is seeking to establish a relationship with them
  • Report suspicious activity and conduct due diligence on existing customers
  • Formulate and operationalize internal procedures for determining high-risk persons or transactions
  • Keep customer records for a period of at least seven years

Mandatory Reporting Requirements

Reporting institutions are also mandated to file reports of all cash transactions exceeding US $10,000 or its equivalent within 7 days of the transaction. The reports must include detailed information on:

  • Nature of the transaction
  • Time and date of the transaction
  • Identity of each person conducting the transaction

FRC Takes Action Against Non-Compliance

The FRC has the authority to take administrative action against reporting institutions that fail to comply with AML/CFT regulations, including:

  • Seeking revocation of licenses for financial or real estate institutions used as conduits for money laundering activities
  • Issuing warnings and directions to reporting institutions
  • Barring individuals from employment in reporting institutions

Anti-Money Laundering Obligations on Designated Non-Financial Businesses and Professions

The POCAMLA also imposes anti-money laundering obligations on designated non-financial businesses and professions, including:

  • Real estate agencies
  • Accountants
  • NGOs
  • Casinos
  • Precious metals and stones dealers
  • Any other business where the risk of money laundering exists

Conclusion

==========

In conclusion, the fight against money laundering is a priority for Kenya, as it poses significant risks to the integrity and stability of the financial sector and broader economy. The FRC will continue to engage with reporting institutions to ensure compliance with AML/CFT regulations, and non-compliance will be met with stern action.

For further information on money laundering and related laws in Kenya, please contact Catherine Nyiha at [email address].