The Financial Reporting Centre (FRC) has warned institutions required to report money transactions that they risk losing their licenses if they fail to register with the agency.
FRC is the body mandated with tracking the flow of illicit cash like money laundering schemes and terrorism financing. Banks and other financial institutions are required to report suspicious transactions.
FRC in a notice on Tuesday directed saccos, real estate agencies, and accounting firms to register with the agency or risk losing their licenses.
Others required to register include forex bureaus, life insurance brokers, and casinos.
"Take note that failure to register with the FRC constitutes an offence pursuant to Section 47A (5) of POCAMLA and the Centre will proceed to take action including issuing administrative and/or civil penalties, issuance of an order to a supervisory body and other relevant Authorities requesting the suspension or revocation of licenses, registration, permit or authorization for any reporting institution that fails to comply with this directive," FRC stated.
FRC requires all financial institutions including banks and saccos and businesses that handle large amounts of money such as casinos and real estate companies to register for monitoring of the movement of money.
"Section 36A of the Proceeds of Crime and Anti-Money Laundering Act, 2009 (POCAMLA) designates the Centre as the supervisor of all reporting institutions for the purpose of implementing the provisions of the POCAMLA and the Proceeds of Crime and Anti-Money Laundering Regulations 2013 (POCAMLA Regulations)," FRC noted.
Kenya has been on the spot over the flow of illicit cash as criminals and political elites from neighbouring countries hide their ill-gotten wealth in the country.
The booming real estate sector amid economic turmoil has been blamed for enabling money laundering, with reports indicating individuals use the industry to clean their dirty money.
Weak laws and corruption have been blamed for the vice.
"Reporting institutions are financial institutions and designated non-financial business professions (DNFBPs) as defined in the Act. All reporting institutions are required to comply with the obligations of POCAMLA, among others registration with the Centre in accordance with Section 47A of the POCAMLA," FRC noted.
FRC has given the institution up to September 15, 2023, to register. Registrations can be done goAML.frc.go.ke.
