Kenya Strengthens Anti-Money Laundering and Combating Terrorism Financing Laws
Boosting Efforts to Combat Illicit Financial Flows
Nairobi, Kenya - The Kenyan government has introduced amendments to key laws aimed at tackling money laundering and terrorism financing. The Anti-Money Laundering and Combating of Terrorism Financing (AML and CFT) Laws (Amendment) Act, 2023 came into force on September 15, 2023.
Strengthening Financial Regulation and Increasing Transparency
The amended laws aim to strengthen financial regulation, increase transparency, and enhance accountability in the fight against money laundering and terrorism financing. Key highlights include:
- Increased penalties for money laundering offenses
- Higher reporting threshold
- Enhanced record-keeping requirements for companies and limited liability partnerships
- Financial groups can be held culpable for money laundering offenses
- Legal professionals required to report suspicious transactions
New Requirements for Companies and Limited Liability Partnerships
The amendments also introduce the concept of nominee directors and partners, requiring companies and limited liability partnerships to maintain registers of such individuals.
Regulatory Powers Enhanced
The Insurance Act, Capital Markets Act, Banking Act, and Central Bank of Kenya Act have been amended to grant supervisory powers to regulators of financial services players. Additionally, the Financial Reporting Centre has been excluded from the purview of the State Corporations Act to ensure its independence.
Anti-Corruption and Economic Crimes Act Expanded
The Anti-Corruption and Economic Crimes Act has also been expanded to include laundering the proceeds of corruption, giving the Ethics and Anti-Corruption Commission a broader mandate to investigate such cases.
Expert Opinion
According to experts, the amendments demonstrate Kenya’s commitment to adopting internationally acceptable standards in combating financial crimes. “These changes will enhance transparency, accountability, and effectiveness in the fight against money laundering and terrorism financing,” said [expert name].