The Cabinet, on Friday, July 7, approved the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill 2023 and passed it to Parliament for debate.
State House Spokesperson Hussein Mohamed, explained that the amendment will aid the government to combat money laundering and enhance Kenya's financial integrity.
"As a progressive member of the Community of Nations, Kenya acknowledges that money laundering poses a significant risk to the integrity of the financial system and the country's overall security," read part of the statement.
The proposed amendments introduce several measures to detect and prevent money laundering activities in Kenya. These include supervising and enforcing terrorism financing, reporting suspicious transactions, transparency of beneficial ownership, and combating terrorism financing.
Some benefits of the new bill include enhanced customer due diligence, strengthened reporting obligations, expanded scope and coverage, and increased penalties and deterrents.
According to the bill, financial institutions and designated non-financial businesses will be required to conduct thorough verification of their customers.
This is expected to mitigate the risk of anonymous transactions and ensure transparency in financial dealings.
All suspicious transactions and activities will be reported to the Financial Reporting Centre (FRC) to initiate investigations in liaison with relevant security enforcement agencies.
In the new bill, money laundering offences will include a wider range of activities like proceeds of domestic and international criminal activities and terrorism financing.
Furthermore, the bill will curtail the emerging threats in digital and cryptocurrency. The amendments introduce stricter penalties for individuals and entities guilty of money laundering offences. This includes higher fines and extended prison terms expected to be strong deterrents against illicit financial activities.
"Kenya aims to safeguard its global competitiveness, foster the development of its economy by attracting ethical foreign investment, and deepen transparency within the financial system," the statement read in parts.
The new regulations are in line with global standards set by the Financial Action Task Force (FATF), an inter-governmental organisation with the mandate to set global standards to promote the effective implementation of legal, regulatory, and operational measures in combating the three trans-national vices - money laundering, terrorism financing and weapons of mass destruction financing.
