Yesterday, the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill 2023 was approved by the Cabinet and sent to Parliament for consideration.
The change would help the government fight money laundering and strengthen Kenya’s financial integrity; according to State House Spokesperson Hussein Mohamed.
Multiple methods to identify and stop money laundering operations in Kenya are included in the proposed modifications.
These include monitoring and implementing laws against funding terrorists, reporting suspicious transactions, ensuring the beneficial ownership of assets is transparent and stopping terrorism financing.
The new law has several advantages, including improved consumer due diligence, tighter reporting requirements, greater fines and deterrents, and wider breadth and coverage.
Financial institutions and specified non-financial organizations will be forced to thoroughly verify their consumers, under the measure.
This should reduce the risk of anonymous transactions and guarantee financial transactions are transparent.
The Financial Reporting Centre (FRC) will receive all reports of suspicious transactions and activity, which will allow it to launch investigations in collaboration with the appropriate law enforcement bodies.
The new measure expands the definition of money laundering offences to encompass the financing of terrorism as well as the revenues of both domestic and foreign criminal activity.
The bill will also stop rising risks in cryptocurrencies and digital technology. For those who commit money laundering offences, the revisions impose harsher penalties. This includes steeper penalties and longer prison sentences; both of which are meant to serve as effective deterrents against illegal financial activity.
The new rules are in accordance with international standards established by the Financial Action Task Force (FATF), an intergovernmental organization whose mission is to promote the effective implementation of legal, regulatory and operational measures in combating the three transnational vices of money laundering, terrorism financing and financing for weapons of mass destruction.
by: MsLK