Financial Crime World

Kenya Steps Up Financial Crime Prevention Measures

To combat money laundering, terrorism financing, and proliferation financing, the Kenyan government has intensified efforts to prevent financial crimes. At the forefront of this effort is the Financial Reporting Centre (FRC), a government institution established by the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA) 2009.

Complying with AML/CFT Measures

According to regulations, reporting institutions are mandated to comply with anti-money laundering and combating the financing of terrorism (AML/CFT) measures. This requires institutions to:

  • Implement robust systems to detect and report suspicious transactions
  • Submit regular reports to regulatory authorities

Targeted Financial Sanctions

The Proceeds of Crime and Anti-Money Laundering Act also empowers the government to impose targeted financial sanctions on individuals and entities deemed to be involved in illegal activities. This includes:

  • Asset freezing
  • Prohibitions to prevent funds or assets from being made available to designated persons or entities

FRC’s Mandate

The Financial Reporting Centre requires reporting institutions to:

  • Submit suspicious or unusual transactions for investigation
  • Take necessary measures to prevent such transactions from occurring in the future

The centre’s mandate is clear: “to promote the integrity of Kenya’s financial system by combating money laundering, terrorism financing, and proliferation financing”.

Strengthening Regulatory Framework

Kenya’s efforts to combat financial crimes are a crucial step towards maintaining the integrity of its financial system and preventing the misuse of funds for illegal activities. As the government continues to strengthen its regulatory framework, it is hoped that these measures will help to:

  • Reduce the risk of financial crimes
  • Ensure a safer and more secure financial environment for all stakeholders

By taking these proactive steps, Kenya is demonstrating its commitment to protecting the integrity of its financial system and preventing the misuse of funds for illegal activities.