Financial Crime World

Here is the rewritten article in Markdown format:

KENYA: AML/CFT Compliance Requirements for Fintech Companies Come into Focus

In a recent move aimed at strengthening anti-money laundering and combating the financing of terrorism (AML/CFT) measures, Kenya’s Financial Reporting Centre (FRC) has directed Trust and Company Services Providers and Dealers of Precious Metals and Stones to register as reporting institutions by April 30th, 2024. As fintech companies operating in the country navigate these new requirements, it is essential for them to understand their obligations under the Proceeds of Crime and Anti-Money Laundering Act, 2009 (POCAMLA).

Understanding Obligations Under POCAMLA

Under Section 2 of POCAMLA, financial institutions and Designated Non-Financial Businesses and Professions (DNFBPs) are identified as reporting entities. These entities must comply with obligations outlined in POCAMLA, the Prevention of Terrorism Act 2023, and other related laws concerning anti-money laundering, terrorism financing prevention, and proliferation financing measures.

Reporting Entities

The Financial Reporting Centre holds overarching responsibility for supervising all reporting entities regarding AML/CFT compliance. Designated supervisory or self-regulatory organizations are responsible for supervising these entities, with a special provision for legal practitioners as mentioned in the First Schedule of POCAMLA.

Reporting Institutions

Several sectors and professions fall under the definition of reporting institutions under POCAMLA, including but not limited to:

  • Financial Institutions
  • Dealers of Precious Metals
  • Dealers of Precious Stones
  • Trust and Company Services Providers

Professional Guidance

In light of these requirements, fintech companies operating in Kenya would benefit from seeking professional advice to ensure compliance with AML/CFT regulations. W&T Advocates LLP offers a range of services designed to support clients in this regard, including:

  • Registration as reporting institutions
  • Crafting and refreshing AML/CFT strategies
  • Performing risk evaluations
  • Training risk management teams
  • Conducting assessments of Know Your Customer (KYC) data

Conclusion

By understanding their obligations under POCAMLA and seeking professional guidance when necessary, fintech companies can ensure compliance with AML/CFT regulations in Kenya and mitigate the risks associated with non-compliance.