Kenya

New Documents

The Central Bank of Kenya and several other government offices issued a public notice regarding the growing use of fraudulent and unlicensed financial schemes seeking to take advantage of Kenyans during the COVID-19 pandemic, as well as money laundering and terrorist financing concerns.

The Basel Institute on Governance announced the successful prosecution by Kenya’s Office of the Director of Public Prosecutions of John Waluke, a member of Kenya’s Parliament, and Grace Wakhungu for their roles in a $3 million fraud and corruption scheme.

Enforcement Actions

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.


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. 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 a transit point for regional and international drug traffickers and trade-based money laundering is a problem. Kenya’s proximity to Somalia makes it an attractive location for laundering piracy-related proceeds, and a black market exists for smuggled and grey market goods. 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. In 2018, the Central Bank of Kenya fined five commercial banks approximately $3.85 million for anti-money laundering deficiencies. The country's financial intelligence unit is not a member of the Egmont Group, and despite progress, Kenya still needs to improve its anti-money laundering and counterterrorist financing regime, as well as strengthen its anti-corruption measures.
-Source: 2020 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i

Technical Effectiveness
Compliant : 1 High :
Largely Compliant : 1 Substantial :
Partially Compliant : 15 Moderate :
Non-Compliant : 32 Low :

BASEL i

Rank : 9/141
Score : 7.18/10

TRANSPARENCY INTERNATIONAL i

Rank : 137/180
Score : 28/100

Tax Justice Network i

Rank : 24/133
Score : 76/100