Kenya

New Documents

ESAAMLG Publishes Mutual Evaluation on AML Framework of Kenya

The Eastern and Southern Africa Anti-Money Laundering Group issued a mutual evaluation report on the anti-money laundering and counterterrorist financing regime of Kenya, highlighting a widely ineffective system.

February 17, 2023

Kenya Central Bank Governor Delivers Speech at Fintech Forum

Patrick Njoroge, governor of the Central Bank of Kenya, delivered a speech at the Kenya Fintech Forum where he outlined three objectives that will help advance financial technology and make it as useful as possible.

May 31, 2022

Kenya Regulator Publishes Discussion Paper on Central Bank Digital Currency

April 28, 2022

Central Bank of Kenya Proposes Regulations for Digital Lenders

January 25, 2022

The Sentry Highlights Areas for AML/CTF Regulatory Reforms in Kenya

October 27, 2021

News

Midweek Roundup: New York Eyes Gun Merchant Code, France Taps AI, Satellite Imagery to Find Untaxed Swimming Pools, and More

German authorities raid JPMorgan Chase, Russian superyachts find new home in sanctions-free Turkey, and more, in the midweek roundup.

August 31, 2022

Midweek Roundup: Maltese AML Push Mired in Legal Challenges, Wirecard Forged Client Data, and More

Terrorists embrace fintech, blacklisted Russians relying on cryptocurrency, and more, in the midweek roundup.

July 13, 2022

Weekly Roundup: Ex-Goldman Sachs Banker Convicted in 1MDB Trial, Canada Previews AML Reforms, and More

April 8, 2022

Weekly Roundup: Turkey Fines Binance, Cryptocurrency Compliance Chief Discusses Travel Rule, and More

December 30, 2021

Midweek Roundup: Canadian AML Whistleblower Vanishes, US Treasury Revokes Gertler License, and More

March 10, 2021

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