Financial Crime World

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Kenya Steps Up Financial Crime Prevention Measures to Safeguard Economy

The Central Bank of Kenya has reaffirmed its commitment to combating financial crimes, including money laundering and terrorism financing, by strengthening its anti-money laundering and combating the financing of terrorism (AML/CFT) measures. This move aims to protect Kenya’s financial system and broader economy from illegal activities.

Supervising and Enforcing Compliance

As part of this effort, the CBK is responsible for supervising and enforcing compliance with the Proceeds of Crime and Anti-Money Laundering Act, 2009 and attendant Regulations among various financial institutions under its purview. These include:

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

Implementing International Standards

Kenya is also committed to implementing international standards on tackling money laundering, terrorism financing, and proliferation financing as set by the Financial Action Task Force (FATF). The country’s primary legislative framework consists of:

  • Proceeds of Crime and Anti-Money Laundering Act, 2009
  • Prevention of Terrorism Act, 2012
  • Other relevant regulations

Recent Assessment and Guidelines

Recently, Kenya underwent an AML/CFT assessment by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), which resulted in a Mutual Evaluation Report. The report summarized Kenya’s AML/CFT measures in place as at the date of the on-site visit and analyzed the country’s level of compliance with FATF standards.

The CBK has also issued guidelines on anti-money laundering and combating the financing of terrorism, as required by section 33(4) of the Banking Act. Additionally, Kenya conducted a National Risk Assessment (NRA) to deepen its understanding of money laundering and terrorism financing in the country.

National Risk Assessment Report

The NRA report, launched in July 2022, details Kenya’s specific risk profile and provides a corresponding strategy and action plan to mitigate identified risks. The CBK has also published updates on high-risk jurisdictions subject to a call for action by the FATF and the 1267 List of individuals and groups involved with Al-Qaeda.

Conclusion

Overall, these measures demonstrate Kenya’s commitment to preventing financial crimes and ensuring the integrity and safety of its financial sector.