Financial Crime World

Kenya’s Financial Industry Under Scrutiny: Compliance with Anti-Money Laundering Laws a Top Priority

The Central Bank of Kenya (CBK) has launched several initiatives aimed at ensuring compliance with anti-money laundering laws and regulations in the financial sector. As the primary authority responsible for supervising and enforcing compliance, the CBK is committed to implementing international standards on tackling money laundering, terrorism, and proliferation financing set by the Financial Action Task Force (FATF).

Compliance with Anti-Money Laundering Laws

Kenya has enacted several laws and regulations to combat money laundering and countering the financing of terrorism. The primary legislative framework consists of:

  • Proceeds of Crime and Anti-Money Laundering Act, 2009: Enacted to prevent and punish money laundering and other related offenses.
  • Prevention of Terrorism Act, 2012: Aimed at preventing and combating terrorism financing.
  • Other relevant laws and regulations.

Recent Developments

Anti-Money Laundering Assessment by ESAAMLG

Kenya underwent an anti-money laundering assessment by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) in 2022. The resulting mutual evaluation report, published in November 2022, assessed Kenya’s compliance with global AML/CTF standards and provided recommendations for strengthening its system.

National Risk Assessment on Money Laundering and Terrorism Financing

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

CBK Guidelines and International Cooperation

The CBK has issued guidelines on anti-money laundering and combating the financing of terrorism for financial institutions. Additionally, Kenya is listed as a high-risk jurisdiction by the FATF, requiring enhanced due diligence from international partners.

1267 List (Al-Qaida Sanctions List)

Maintained by the United Nations Security Council Resolution 1267, this list contains information on individuals and groups involved with Al-Qaeda. The list is available in three formats: PDF, XML, and HTML.

FATF High-Risk Jurisdictions

As a FATF High-Risk Jurisdiction subject to a Call for Action, Kenya’s financial institutions are required to apply enhanced due diligence measures to mitigate money laundering, terrorist financing, and proliferation financing risks.