Ruto Approves Money Transaction Tracking Law
The Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2023 has been signed into law by President William Ruto, allowing the State to receive and assess suspicious bank transactions.
The new amendments, which became law on Friday, September 1st, instituted several measures to detect and prevent money laundering in Kenya, such as the supervision and enforcement of terrorism financing and the reporting of suspicious transactions.
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To promote openness in financial transactions, financial institutions will also increase the screening of their consumers.
“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,” read portions of a statement from State House communication.
The Financial Reporting Centre (FRC), a government institution established by the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA) of 2009, was also authorized to improve its report analysis and share intelligence with relevant law enforcement agencies.
In response, government agencies will initiate investigations and take decisive action against those responsible for money laundering in the country.
However, investigations will commence or be formulated after banks and other financial institutions notify FRC of suspicious transactions and activities.
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As part of their responsibility to enforce the law, banks and other financial institutions must disclose to the FRC any transaction exceeding Ksh1.7 million (at current exchange rates).
“The Law increases from Ksh1.2 million (USD 10,000) to Ksh1.7 million (USD 15,000) the value of a cash transaction for which a reporting institution is required to file a report with the Financial Reporting Centre,” the statement read in part.
The Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Act of 2023 has also increased penalties for perpetrators and shortened the reporting period for suspicious activity or transactions from seven to two days.
In addition, the new amendments have broadened the Act’s applicability to include combating the financing of terrorism and the financing of the proliferation of weapons of mass destruction.
Under the new provisions, the Attorney General will serve as the chairman of the Asset Recovery Advisory Board and the Board’s function will be limited to advisory.
Ruto also enacted the Climate Change (Amendment) Bill, which aimed to amend the Climate Change Act, of 2016 to regulate carbon markets.
A carbon market is a system for purchasing and selling carbon credits, which are financial instruments that enable businesses, governments, and other organizations to address their greenhouse gas emissions by financing projects that reduce or remove carbon dioxide from the atmosphere.
Ahead of the inaugural Africa Climate Summit, which will be held at the Kenyatta International Convention Centre (KICC) in Nairobi from September 4 to September 6, the chief of state signed the law.
Ruto Approves Money Transaction Tracking Law