Financial Crime World

Kenya Takes Significant Leap in Combating Money Laundering and Terrorism Financing with Compliance Risk Assessment Tools

Kenya has made a major milestone in the fight against money laundering (ML) and terrorism financing (TF), successfully conducting comprehensive risk assessments for key sectors. This significant achievement is expected to enhance its understanding of these risks, strengthening its anti-money laundering and counter-terrorism financing regime.

Comprehensive Risk Assessments

The risk assessments covered Terrorism Financing, Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs), as well as legal persons and arrangements. Utilizing a wide range of qualitative and quantitative data from diverse sources, including:

  • Law enforcement agencies
  • Competent authorities
  • The private sector
  • The public
  • Open sources

These assessments have provided valuable insights into the ML/TF risks facing Kenya, enabling its National Revenue Authority (NRA) and other competent authorities to develop targeted strategies for mitigating these threats.

Impact of Risk Assessments

The reports generated from these assessments are expected to inform and guide the country’s efforts in combating ML/TF, ensuring that its financial system remains robust and secure. The successful implementation of compliance risk assessment tools is a testament to Kenya’s commitment to maintaining international standards and best practices in AML/CFT (Anti-Money Laundering and Combating the Financing of Terrorism).

Regional Significance

Kenya’s achievement has significant implications for the region and beyond, as it demonstrates the country’s capacity to effectively assess and mitigate ML/TF risks. The success of these assessments is likely to inspire other countries to follow suit, ultimately contributing to a safer and more stable global financial system.

Accessible Reports

The risk assessment reports are now available online, providing stakeholders with valuable information on:

  • ML/TF risks associated with VA and VASP activities
  • TF activities
  • Legal persons and arrangements
  • Other areas

These reports will serve as a crucial resource for:

  • Policymakers
  • Regulators
  • Financial institutions
  • Other stakeholders seeking to stay ahead of emerging ML/TF threats in Kenya.