Financial Crime World

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Financial Reporting Centre: Streamlining Compliance for Reporting Institutions

In an effort to enhance transparency and combat financial crimes, the Financial Reporting Centre (FRC) has outlined the registration process and compliance requirements for reporting institutions.

Registration Process

According to the FRC, reporting institutions are required to submit an application for registration, which will be reviewed and either approved or rejected. Upon approval, the institution will receive a notification confirming its registration and allocation of a unique organization number.

Compliance Requirements

The Centre has outlined several compliance requirements for reporting institutions:

  • Annual Compliance Reporting: Reporting institutions are required to submit a compliance report detailing their compliance with the Proceeds of Crime and Anti-Money Laundering Act, 2009, the POCAML Regulations, and their internal anti-money laundering rules by January 31 of each year.
  • Suspicious Transaction/Activity Reports (STR/SAR): Reporting institutions or supervisory bodies must report suspicious activities or transactions to the Centre within two days after becoming aware of them.
  • Cash Transaction Reports (CTR): Reporting institutions are required to file reports with the Centre on all cash transactions equivalent to or exceeding US$15,000 or its equivalent in any other currency.
  • Cross Border Declarations: Individuals intending to convey monetary instruments equivalent to or exceeding USD 10,000 to or from Kenya must declare the particulars of that conveyance to the Customs Officer and submit it to the Centre within five days.
  • Report on Customers Originating from Higher Risk Countries: Reporting institutions are required to submit a list of customers originating from higher-risk countries to the Centre by January 31 of each year.

Automated Reporting

The FRC has automated the reporting of suspicious or unusual transactions through the goAML system, which can be accessed here. The Centre encourages reporting institutions to use this system for reporting purposes.

Public Awareness and Reporting

In a bid to promote transparency and public awareness, the FRC has established a Public Reporting Section that enables members of the public to provide information about suspicious activities. Members of the public are encouraged to volunteer any information they may have regarding suspicion of money laundering or terrorist activities through the Contact Us section.

Targeted Financial Sanctions

The Centre has also outlined targeted financial sanctions, which include asset freezing and prohibitions to prevent funds or other assets from being made available to designated persons or entities.

Conclusion

In conclusion, the FRC is committed to ensuring that reporting institutions comply with anti-money laundering and combating the financing of terrorism regulations. By following these guidelines, reporting institutions can ensure compliance and contribute to a safer financial system.