Financial Crime World

Here is the article in markdown format:

Kenyan Government Tightens Financial Laws to Combat Terrorism and Proliferation

In a bid to strengthen its efforts against terrorism and proliferation, the Kenyan government has amended the Proceeds of Crime and Anti-Money Laundering Act, 2009. The PwC AML/CTF Amendment Act 2023 introduces several key changes aimed at curbing financial support for terrorist activities and weapons of mass destruction.

New Offences and Penalties

The amendment introduces new offences and penalties to combat terrorism financing (TF) and proliferation financing (PF).

  • Providing financial support to a proliferation act is now an offence punishable by a fine of up to KES 20 million or imprisonment for up to 20 years.
  • Financing travel into another state for purposes of committing a terrorist act is also an offence.
  • Making funds available to designated persons and entities unless authorized by the UN Security Council is prohibited. Contravening this provision attracts imprisonment for up to 20 years for individuals or a fine of up to KES 20 million for legal persons.

Strengthened Regulatory Framework

To combat money laundering, terrorism financing, and proliferation financing, the amendment introduces several measures aimed at strengthening the regulatory framework:

  • Expanded scope of the offence of money laundering to cover terrorism and proliferation financing.
  • Increased mandate for reporting institutions and supervisory bodies to report instances of PF and TF.
  • Emphasis on risk-based approach to ML/TF/PF by Financial Reporting Centre (FRC) and supervisors.
  • Increased due diligence scope to include materiality and risk for both individuals and countries.

The amendment also introduces new requirements for legal persons, including:

  • Increased beneficial ownership compliance requirements.
  • Requirement to comply with AML/CTF obligations by 31 October 2023.

PwC Expertise

PwC, a leading professional services firm, is well-equipped to help organizations navigate the amended laws and regulations. With expertise in anti-money laundering (AML), combating the financing of terrorism (CFT), and proliferation financing (PF), PwC can assist clients in developing and updating AML/CTF policies, conducting risk assessments, providing training on key AML/CTF developments, and reviewing AML/CTF programs.

For more information or to discuss how PwC can help your organization comply with the amended laws, please contact:

  • Muniu Thoithi, Advisory Leader, East Africa
  • John Kamau, Associate Director, Forensics & Financial Crime
  • Joseph Githaiga, Associate Director, Legal Business Solutions
  • Titus Kariuki, Senior Manager, Financial Crime
  • Brenda Guchu, Manager, Forensics & Financial Crime