Financial Crime World

Here is the rewritten article in Markdown format:

KENYA’S NEW AML GUIDELINES FOR BUSINESSES: KEY TAKEAWAYS FROM THE AMENDMENT ACT

Kenya has taken a significant step towards combating illicit financial flows by assenting to the Anti-Money Laundering and Combating of Terrorism Financing (AML and CFT) Laws (Amendment) Act, 2023. The Amendment Act came into force on September 15, 2023, and introduces several key changes aimed at enhancing customer due diligence in financial markets, improving record keeping, and reporting suspicious transactions.

Key Changes

  • Financial groups can now be held culpable for money laundering offenses, with sanctions extending to wider group entities.
  • Legal professionals are now required to report any suspicious transactions.
  • The reporting threshold for suspicious transactions has been increased from $10,000 to $15,000.
  • Increased penalties for money laundering offenses, including a maximum penalty of up to 50% of the monetary instrument involved.

Corporate Sector Requirements

Companies registered in Kenya must comply with new record-keeping requirements. This includes:

  • Keeping information about directors, shareholders, and beneficial owners for at least 10 years after a person ceases to be a director, shareholder, or beneficial owner.
  • Maintaining records of nominee directors, disclosing details about the person who nominated the director.

Limited Liability Partnerships (LLPs)

LLPs registered in Kenya are required to maintain records of beneficial owners for at least 10 years after such person ceases to be a beneficial owner.

Regulatory Powers

The Amendment Act grants supervisory powers to regulators of financial services players, including:

  • Insurance Regulatory Authority
  • Capital Markets Authority
  • Central Bank of Kenya

This aims to align provisions with previous oversight powers and enhance transparency and accountability in the fight against money laundering and terrorism financing.

Conclusion

In conclusion, the Amendment Act is a significant step towards enhancing Kenya’s AML and CFT framework. The new guidelines aim to improve customer due diligence, record keeping, and reporting suspicious transactions, ultimately strengthening the country’s commitment to combating financial crimes. Businesses must take note of these changes and ensure compliance with the amended laws to avoid penalties and reputational damage.