Kenya Kenya

New Documents

Kenya Shares Results of ML/TF Assessment of Legal Persons, Structures

The Kenyan government issued a report after it conducted a money laundering and terrorist financing risk assessment on legal persons and arrangements in the country.

April 24, 2024

Central Bank of Kenya Shares 2022 Bank Supervision Annual Report

The Central Bank of Kenya released the Bank Supervision Annual Report for 2022, highlighting the financial sector’s resilience amid global challenges.

April 2, 2024

Kenya Central Bank Issues Circulars on AML/CTF Amended Law

February 19, 2024

Central Bank of Kenya Issues 2022 Annual Report

January 19, 2024

Kenya Enacts New AML/CTF Law

October 26, 2023

News

Midweek Roundup: Binance Founder Faces Jail Time, Chinese Banks in US Crosshairs, and More

U.S. foreign aid bill empowers FinCEN, SEC seeks $5 billion from Terraform Labs, and more, in the midweek roundup.

April 24, 2024

Weekly Roundup: World-Check Database Hacked, Treasury Appeals CTA Case, and More

Adult children robbing elderly parents, and more, in the weekly roundup.

April 19, 2024

Weekly Roundup: New York Yanks BitLicense, Tornado Cash Still in Business, and More

January 12, 2024

Weekly Roundup: Fintechs Target Hamas, Blacklisted Oligarch’s Children Investigated, and More

January 5, 2024

Weekly Roundup: Regulators Question Goldman Sachs’ Due Diligence, Auditors Criticize FinCEN, and More

September 1, 2023

Enforcement Actions

Central Bank of Kenya Orders Absa Bank Kenya PLC to Improve KYC Compliance

The Central Bank of Kenya issued an enforcement action against Absa Bank Kenya PLC for failing to apply certain anti-money laundering compliance control standards on foreign exchange trades conducted in March 2020.

April 15, 2020

Key Documents

Kenya Enacts AML, Asset Forfeiture Provisions

December 31, 2009

Kenya Provides Banks, Lending Institutions with STR Guidance

July 15, 2011

Central Bank of Kenya Publishes Prudential Guidelines Licensed Under the Banking Act

July 6, 2006

Kenyan Regulator Issues CFT Guidance

September 8, 2011

Central Bank of Kenya Releases AML Guidance

August 9, 2010

Important Facts

  • The U.S. State Department classifies Kenya as a major money laundering country. Kenya remains vulnerable to money laundering, financial fraud, and terrorism financing, with money laundering occurring in both the formal and informal sectors. The State Department highlights that the illicit proceeds are derived from domestic and foreign criminal operations. For example, key financial institutions in Kenya engage in currency transactions connected to international narcotics trafficking, involving significant amounts of U.S. currency derived from illegal sales in the U.S. and Kenya. Other criminal activities include transnational organized crime, cybercrime, corruption, smuggling, trade invoice manipulation, illicit trade in drugs and counterfeit goods, trade in illegal timber and charcoal, and wildlife trafficking. Kenya is additionally a transit point, thus making trade-based money laundering a significant problem. Kenya’s proximity to Somalia makes it an attractive location for the use of unregulated networks of hawaladars and other unlicensed remittance systems that facilitate cash-based, and other unreported transfers among foreign nationals, including refugees. The jurisdiction is the financial hub of East Africa and its place at the forefront of mobile banking also make Kenya vulnerable to money laundering.  Despite mobile banking innovations, Kenya does not recognize virtual currency as legal tender and has not adequately altered its anti-money laundering laws to address digital asset risks. The country has also failed to amend its laws to implement anti-money laundering reporting obligations for lawyers, notaries, and other independent legal professionals.
-Source: 2021 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 2 High : 0
Largely Compliant : 1 Substantial : 0
Partially Compliant : 26 Moderate : 2
Non-Compliant : 11 Low : 9

BASEL i

Rank : 9/141
Score : 7.18/10

TRANSPARENCY INTERNATIONAL i

Rank : 124/179
Score : 31/100

Tax Justice Network i

Rank : 24/133
Score : 76/100