Financial Crime World

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Kenya Amends Targeted Sanctions Related to Terrorism and Proliferation Financing

In a significant move to combat terrorism and proliferation financing, Kenya has amended its laws to broaden the scope of targeted financial sanctions. The amendments aim to enhance the country’s ability to detect and prevent the misuse of its financial system for terrorist financing (TF) and proliferation financing (PF).

Key Provisions

The amended law introduces new offenses related to TF and PF, including:

  • Financing travel for terrorism purposes
  • Providing financial support to proliferation activities
  • Making funds available to designated persons or entities without authorization from the UN Security Council

The amendments also increase penalties for legal persons that contravene provisions of the Act. For instance, a fine of up to KES 30 million can be imposed on companies and limited liability partnerships (LLPs) that fail to comply with beneficial ownership requirements.

Increased Mandate for Reporting Institutions

With the expanded scope of offenses, reporting institutions and supervisory bodies will now have an increased mandate to report instances of TF and PF. This means that they must prioritize unique ML/TF/PF risks associated with their sectors and allocate resources accordingly.

Greater Scrutiny for Supervisors

Supervisory bodies’ increased AML/CPF mandates mean that all reporting institutions are placed under greater scrutiny by their regulators on AML/CFT compliance.

Risk-Based Approach Emphasized

The amendments emphasize the need for a risk-based approach in addressing money laundering risks. This means that reporting institutions must prioritize unique ML/TF/PF risks associated with their sectors and allocate resources accordingly.

PwC’s Expertise

As a leading professional services firm, PwC has extensive experience in conducting AML/CFT program reviews to assess compliance with regulatory frameworks and global best practices. We also provide training on risk assessments, AML/CFT developments, and Know Your Customer (KYC) data assessments.

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For further information on the AML/CFT Amendment Act and our services, please contact:

This newsletter is a summary of the key amendments to 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.

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