Nairobi – The Financial Action Task Force (FATF), an international organization combating money laundering, has added Kenya to its ‘grey list’, indicating increased monitoring.
According to Treasury CS Njuguna Ndung’u, Kenya’s inclusion on the list signifies a higher level of scrutiny to ensure adherence to global anti-money laundering, counter-terrorism financing, and proliferation of weapons of mass destruction regulations.
In response to an evaluation by the East and Southern Africa Anti-Money Laundering Group (ESAAMLG) in 2022, Kenya has initiated a series of measures to address regulatory shortcomings.
Despite facing some challenges, Kenya has made strides in compliance, notably through the enactment of the AML/CFT (Amendment) Act, 2023, which involved significant legislative changes to align with international standards.
Ndung’u highlighted that the country has bolstered its anti-money laundering efforts by amending the Prevention of Terrorism Regulations to align with the revised Act. Additionally, the publication of updated regulations in 2023 reflects Kenya’s commitment to enhancing financial security.
Regulatory bodies such as the Central Bank of Kenya have intensified AML/CFT measures by implementing new supervision protocols and conducting risk-based inspections to ensure regulatory compliance.
Furthermore, legal practitioners have been designated as reporting entities under key anti-money laundering legislation, empowering the Law Society of Kenya to oversee its regulatory responsibilities.
Emphasizing Kenya’s resolve to address deficiencies outlined in the Mutual Evaluation Report, Ndung’u underscored the government’s dedication to implementing the FATF Action Plan comprehensively.
With a focus on safeguarding financial stability and promoting a conducive business environment, Kenya remains steadfast in combating money laundering, terrorism financing, and proliferation risks.
The government vows to expedite efforts to rectify identified shortcomings and aims for a swift exit from the ‘grey list’ to strengthen its global financial standing.
