The Treasury has confirmed that the Global Money Laundering Agency that formed the Financial Action Task Force (FATF) has put kenya on the spot over money laundering.
According to reports, the agency has put kenya on the grey list for international Anti-Money Laundering, Countering the Financing of Terrorism, and Proliferation of Weapons of Mass Destruction.
Confirming the recent developments against kenya, Treasury Cabinet Secretary Njuguna Ndung’u has said that the new rating necessitates Kenya to enhance monitoring to ensure compliance.
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“This underscores the imperative for swift and comprehensive action to bolster our compliance efforts. It is important to note that Kenya underwent an assessment conducted by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) in 2022. The evaluation revealed a mixed picture.”
According to Ndung’u, the government received the report after inauguration and embarked on several interventions and initiatives to implement the recommended actions.
Among the measures put in place by Kenya include the enactment of the AML/CFT (Amendment) Act, 2023, which involved a comprehensive overhaul of existing legislation on anti-money laundering and terrorism.
The 2023 Act comprised 17 amendments aimed at addressing various legal and technical compliance deficiencies identified in the Mutual Evaluation Report (MER).
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According to Ndung’u’s, these ammendments required both legal and regulatory reforms as well as a number of institutional actions
“These amendments represent a crucial step towards aligning Kenya’s legal framework with international standards. Kenya has thus demonstrated compliance in certain areas while facing challenges in others.”
The Central Bank of Kenya and other investigative authorities were ordered to carry out audits to ensure banks, real estate agencies and casinos adhere to the new changes.
Lawyers, through the Law Society of Kenya, also coordinated with relevant authorities including the Financial Reporting Centre (FRC) to help combat money laundering.
“Collaboration and technical assistance from these partners will be crucial in our efforts to enhance our framework, strengthen regulatory institutions and expedite our exit from the grey list.”
“While there are still strategic deficiencies that require urgent attention, Kenya remains fully committed to implementing the FATF Action Plan comprehensively and expeditiously.”