Financial Crime World

KENYAN GOVERNMENT INTRODUCES TOUGHER PENALTIES FOR MONEY LAUNDERING OFFENCES

Stricter Laws to Combat Illicit Financial Flows

The Kenyan government has introduced stricter penalties for money laundering offences in a bid to curb the illicit flow of funds and protect the country’s financial system. The new laws, which come into effect immediately, aim to strengthen Kenya’s financial system and safeguard its citizens.

Penalties for Individuals and Corporate Bodies

  • Fines: Up to KES 500 million (approximately USD 5.3 million) for individuals found guilty of contravening anti-money laundering provisions.
  • Imprisonment: Up to 10 years for individuals found guilty of money laundering offences.
  • Fines: Up to KES 1 billion (approximately USD 10.6 million) for corporate bodies found guilty of money laundering offences.

New Measures to Prevent Money Laundering and Terrorist Financing

  • Enhanced customer due diligence requirements for financial institutions.
  • Stricter reporting obligations for financial institutions, including reporting suspicious transactions to the Financial Intelligence Unit or regulator.
  • Introduction of new powers for the Financial Intelligence Unit or regulator to impose sanctions on corporate bodies found guilty of money laundering offences.

Responsibilities of Financial Institutions and Corporate Bodies

  • Financial institutions must take reasonable measures to establish the true identity of their customers and report any suspicious transactions to the Financial Intelligence Unit or regulator.
  • Corporate bodies, including directors, managers, controllers, and partners, are required to take reasonable measures to prevent money laundering offences from being committed by the company.

Commitment to Combating Money Laundering and Terrorist Financing

The Minister of Finance has stated that the government is committed to combating money laundering and terrorist financing. The introduction of these new laws aims to strengthen Kenya’s financial system and protect its citizens from illicit financial activities.

Compliance with New Regulations

All financial institutions and reporting persons are required to comply with the new regulations, which come into effect immediately.