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Kenya’s New AML/CTF Amendment Act: A Major Step Forward in Combating Terrorism Financing and Proliferation

Nairobi, Kenya - In a significant move to enhance the country’s fight against terrorism financing and proliferation, the Kenyan government has enacted the PwC AML/CTF Amendment Act 2023. The new law aims to address the inadequacy of targeted financial sanctions related to terrorism, terrorist financing, and proliferation financing.

Key Amendments

The amendment act introduces several key changes aimed at strengthening Kenya’s anti-money laundering (AML) and combating the financing of terrorism (CFT) framework. Some of the notable amendments include:

  • Independent Offences: The act now allows for the investigation, trial, and punishment of terrorism financing (TF) and proliferation financing (PF) as independent offences from money laundering.
  • Financing of Proliferation Act: It is now an offence to provide financial support to any activity that promotes the development or production of weapons of mass destruction.
  • Financing Travel for Terrorism Purposes: The act criminalizes the financing of travel into another state for purposes of committing a terrorist act.
  • Prohibition on Making Funds Available to Designated Persons/Entities: It is now an offence to make funds available to designated persons and entities, unless authorized by the UN Security Council.

Increased Mandate for Reporting Institutions

The amended act places a greater mandate on reporting institutions to report instances of TF and PF, as well as increased scrutiny from supervisory bodies. The act also emphasizes the need for a risk-based approach to AML/CTF, requiring reporting institutions to prioritize unique risks associated with their sectors.

Establishment of CFT Inter-Ministerial Committee

The act establishes the CFT Inter-Ministerial Committee to formulate and supervise the implementation of the National Strategy and Action Plan on Counter Financing of Terrorism.

PwC’s Expertise

As a leading professional services firm, PwC is well-equipped to help clients navigate the amended act. Our experts can provide guidance on developing AML/CTF policies, conducting risk assessments, and implementing effective compliance programs.

Contact Us

For further information on the AML/CTF Amendment Act or our services, please contact:

Disclaimer

This newsletter is a summary of the key amendments of the Act and is not meant to be exhaustive. It is not a legal opinion, nor does it constitute legal advice. PwC accepts no liability for decisions made on the basis of this alert.