Financial Crime World

Kenya Embarks on Stronger Efforts to Combat Money Laundering and Terrorism Financing

The Central Bank of Kenya (CBK) has reiterated its commitment to combatting money laundering and terrorism financing in the country, as part of efforts to strengthen financial sector integrity and enhance national safety and security.

Key Responsibilities

According to the Proceeds of Crime and Anti-Money Laundering Act, 2009, CBK is responsible for supervising and enforcing compliance with anti-money laundering regulations among financial institutions under its purview. These institutions 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 has committed to implementing international standards on combating money laundering, terrorism financing, and proliferation financing as set by the Financial Action Task Force (FATF). The country’s primary legislative framework consists of:

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

Recent Assessments and Recommendations

Recently, Kenya underwent an anti-money laundering, counter-terrorist financing, and counter-proliferation financing assessment by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG). The Mutual Evaluation Report of Kenya, published in November 2022, assessed the country’s compliance with global AML/CTF standards and provided recommendations on strengthening its system.

In addition, Kenya conducted a National Risk Assessment (NRA) to deepen its understanding of money laundering and terrorism financing threats. The report, launched in July 2022, details the country’s specific risk profile and provides a strategy and action plan to mitigate identified risks.

CBK Guidelines

The CBK has also issued guidelines on anti-money laundering and combating the financing of terrorism, as required by the Banking Act. These efforts aim to protect Kenya’s financial system from the threats of money laundering and terrorism financing.

International Updates

In related news, the 1267 List (Al-Qaida Sanctions List) has been updated, containing information on individuals and groups involved with Al-Qaeda. The Financial Action Task Force (FATF) has also published a list of high-risk jurisdictions subject to a call for action, urging countries to apply enhanced due diligence and countermeasures.

Conclusion

The Kenyan government’s commitment to combating money laundering and terrorism financing is a crucial step in protecting the country’s financial sector and ensuring national security. By implementing international standards and guidelines, Kenya can strengthen its efforts to prevent and detect these threats.