Here is the article in Markdown format:
Licensing of Businesses: New Regulations Introduced
======================================================
In a move aimed at enhancing financial transparency and combating money laundering and terrorism financing, the Kenyan government has introduced new regulations governing the licensing of businesses.
New Requirements for Business Licenses
According to the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Act, 2023, all businesses operating in Kenya must obtain a license from the relevant authorities before commencing operations. Licensed persons are required to furnish information and records on their beneficial ownership for at least five years after cancellation of their license.
Empowering the Commissioner
The law empowers the Commissioner to cancel a license in circumstances where the licensed person has made false or misleading statements in their application or renewal of a license.
False or Misleading Statements
- A person who makes a false or misleading statement in an application for a license or renewal of a license, or in any document furnished under this Act to the Commissioner with or in support of or in connection with an application for a license or renewal of a license commits an offence and is liable to a fine not exceeding five thousand shillings.
Refusal to License
- Where the Board refuses to license an application or renewal or alteration of a license, the Board shall record the reasons for its decision and shall furnish copies of such records to the applicant.
- The applicant may appeal against the refusal within thirty days from the date of receipt of the notice of refusal.
Penalties for Violations Relating to Money Laundering and Terrorism Financing
- A person who violates or fails to comply with any provision of this Act, or any regulation, guideline, rule, direction or instruction issued under this Act shall be liable to penalties as set out in the Act.
- The law provides that all persons subject to this Act shall enjoy all rights and fundamental freedoms enshrined in the Constitution unless limited to the extent specified in Article 24 of the Constitution, this Act or any other Act.
New Powers for Regulatory Authority
- The regulatory authority has been given new powers to regulate, supervise and enforce compliance for anti-money laundering, combating the financing of terrorism and countering proliferation financing purposes by all reporting institutions regulated and supervised by it.
- Vetting proposed significant shareholders, directors and senior officers of a reporting institution
- Conducting onsite inspections
- Undertaking consolidated supervision of a reporting institution and its group
- Compelling the production of any document or information
- Imposing monetary sanctions
- Taking other necessary actions to ensure compliance
The new regulations are aimed at enhancing financial transparency and combating money laundering and terrorism financing in Kenya. They will come into effect upon publication in the Kenyan Gazette.