President William Ruto has assented to the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2023, into Law, allowing the State to receive and review bank transactions flagged as suspicious.
The new amendments, which officially became law on Friday, September 1, introduced several measures to detect and prevent money laundering activities in Kenya, including the supervision and enforcement of terrorism financing and reporting suspicious transactions.
Financial institutions will also enhance the screening of their customers to ensure transparency in financial dealings.
"The Amendments propose legal and policy reforms to address technical compliance deficiencies identified in Kenya’s second Anti-Money Laundering and Counter-Terrorism Financing Mutual Evaluation Report by the Eastern and Southern Africa Anti-Money Laundering Group," the statement from State House communication read in parts.
The Financial Reporting Centre (FRC), a Government institution created by the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA) 2009, was also authorised to enhance its analysis of reports and share intelligence with relevant law enforcement agencies.
In turn, government agencies involved will initiate investigations and take decisive action against money laundering perpetrators in the country.
However, the investigations will commence or be drafted after banks and other financial institutions report suspicious transactions and activities to FRC.
As part of their enforcement responsibility, banks and other financial institutions are required to ensure that any transaction above Ksh1.7 million (current exchange rates) is reported to the FRC.
"The Law increases the value of a cash transaction in which a reporting institution is obliged to file a report with the Financial Reporting Centre from Ksh1.2 million (USD 10,000) to Ksh1.7 million (USD 15,000)," the statement read in parts.
Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Act, 2023, has also enhanced penalties to suspects and reduced the period within which a suspicious activity or transaction is to be reported to the FRC from seven to two days.
The new amendments have also expanded the scope of application of the Act to cover combating terrorism financing and financing of proliferation of weapons of mass destruction.
Meanwhile, under the new provisions, the Attorney-General will serve as the chairperson of the Asset Recovery Advisory Board and limit the role of the Board to an advisory role.
Ruto also signed into law the Climate Change (Amendment) Bill that sought to amend the Climate Change Act, 2016 to regulate carbon markets. A carbon market is a system for buying and selling carbon credits, which are instruments that allow companies, governments, and other organizations to address their greenhouse gas emissions by funding projects that reduce or remove carbon dioxide from the atmosphere.
The head of state signed the law ahead of the inaugural Africa Climate Summit set to be held at the Kenyatta International Convention Centre (KICC) in Nairobi from September 4 to September 6.
