Kenya Gray-Listed by FATF for Anti-Money Laundering Breaches
Kenya has been formally added to the grey list by the Financial Action Task Force (FATF) in the areas of international Anti-Money Laundering, Countering the Financing of Terrorism, and Proliferation of Weapons of Mass Destruction.
On Friday, Treasury Cabinet Secretary Njuguna Ndung’u acknowledged the recent changes, affirming that the updated rating requires Kenya to strengthen its monitoring efforts to ensure adherence.
What’s a Grey List?
A grey list consists of nations that face potential challenges in tackling money laundering and terrorism but have taken steps to address these issues.
“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,” Ndung’u stated.
Efforts Taken by Kenya to Combat the Vices
Nevertheless, he mentioned that following the inauguration, the Kenya Kwanza government evaluated the report and initiated various interventions and programs to execute the suggested measures.
“This required both legal and regulatory reforms as well as several institutional actions,” the CS disclosed.
Kenya has implemented various measures, including the introduction of the AML/CFT (Amendment) Act, 2023, which entailed a thorough revamp of the existing laws related to anti-money laundering and counter-terrorism financing.
The 2023 Act included 17 amendments designed to rectify diverse legal and technical compliance shortcomings highlighted in the Mutual Evaluation Report (MER).
“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,” Ngung’u stated.
ALSO READ:
- Whistleblower Reveals Ksh4 Billion Windfall for 7 Law Firms Advising IEBC
- Why Ruto & Gachagua Receive Ksh650K Housing Allowance Despite Living in State Residences
- Kenyan Citizens Plan Mass Boycott of President Ruto’s X Space, Opt for Parallel Session
- Gov’t Suspends Recruitment in Public Service
- Nairobi County Lost Ksh 70 Million Daily Due to Protests, Governor Sakaja
The modification of the current laws was expanded to include the Proceeds of Crime and Anti-Money Laundering Regulations, 2013, to bring it in line with the AML/CFT Amendment Act. The Treasury officially published the updated regulations on October 6, 2023.
Kenya also examined the 2022 Regulations for the Implementation of United Nations Security Council Resolutions on the Suppression of Terrorism, as part of its review.
The Central Bank of Kenya and other investigative agencies were directed to conduct audits to verify that banks, real estate firms, and casinos comply with the recent modifications.
Attorneys, working in collaboration with the Law Society of Kenya, also cooperated with pertinent agencies such as the Financial Reporting Centre (FRC) to actively address the issue of money laundering. The FRC functions as an autonomous entity, aiding in the identification of illicit gains and the prevention of money laundering activities.
Kenya Pledges to Enhance Monitoring
“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,” Ndung’u promised.
He mentioned that the Treasury would assess the unfolding events and close any existing loopholes.
Kenya Gray-Listed by FATF for Anti-Money Laundering Breaches