The National Treasury has announced that financial institutions and designated non-financial institutions must have Anti-Money Laundering Reporting Officers as the government seeks to tighten the leash on illegal financial flows in the nation.
This is provided in Regulation No.10 of the National Treasury's Crime and Anti-Money Laundering Regulations of 2023 for which Kenyans have until October 2, by 5pm to submit comments.
The non-governmental organizations that are designated non-financial institutions include real estate agencies, institutions dealing in precious metals and precious stones, accountants who are sole practitioners or partners in their institutions, and non-governmental organizations.
The regulations state.
This comes just a month after President William Ruto signed into law the Anti-Money Laundering and Combating of Terrorism Financing Laws Bill of 2023. The decision to abolish the Financial Reporting Centre from the classification of a state corporation was a major step taken by the government, which was expected to allow the centre to operate autonomously.
The bill enables the Capital Markets Authority and the Insurance Regulatory Authority to enforce compliance with the Act amongst their licensees, a move that expands the reach of regulatory watchdogs as it combats illegal financial flows in the nation.
According to the proposed 2023 regulations, the Money Laundering Reporting Officer will report directly to the Financial Reporting Centre. The regulations bar any Chief Executive Officer or Internal Auditor from nomination as an Anti-Money Laundering Reporting Officer, except for the case where the business is a sole proprietorship.
The regulations state this.
locking controls on anti-money laundering are a crucial part of Kenya's ongoing programme with the International Monetary Fund.