Kenya

New Documents

Central Bank of Kenya Holds Afro-Asia FinTech Event

The Central Bank of Kenya issued a press release highlighting the Afro-Asia FinTech Festival Nairobi Online City, which was part of the 2020 Singapore FinTech Festival taking place Dec. 7-11, 2020.

January 7, 2021

Basel Institute: Kenya Recovered $271 Million in Stolen Assets in Five Years

The Basel Institute on Governance announced that Kenya’s Ethics and Anti-Corruption Commission recovered assets tied to corrupt and illegal activity worth a total of KES $9.3 billion, or roughly USD $84 million in the past year, and KES $29.8 billion, approximately USD $271 million, in five years.

December 2, 2020

Central Bank of Kenya, Other Agencies Launch Dialogue on Global Digital Finance Governance

November 16, 2020

Kenyan Regulators Issue Warning on Fraudulent, Unlicensed Financial Entities

August 31, 2020

Basel Institute: Kenya ODPP Prosecutes Member of Parliament for Corruption

July 1, 2020

News

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

Cryptocurrency exchange bans users in FATF gray-listed countries, encrypted messaging platform laundered funds through Panama and Luxembourg, and more, in the midweek roundup

March 10, 2021

Midweek Roundup: Western Union Ends Cuban Remittances, Airbnb Faces US Sanctions Fine, and More

Prevezon Holdings suspected of handling larger volume of illicit funds, Crown Resorts loses license, and more, in the midweek roundup.

November 18, 2020

Weekly Roundup: US Prosecutors Outline $2.5 Billion North Korean Sanctions Evasion Scheme, Russia Sees Uptick in COVID-19 Money Laundering, and More

May 29, 2020

Weekly Roundup: EU Nations Oppose Single AML Agency, Hong Kong Bill Carries Penalties for Banks, and More

May 22, 2020

Midweek Roundup: FinCEN Issues COVID-19 Loan Advisory, Small Banks Seek Beneficial Ownership Relief amid Pandemic, and More

April 15, 2020

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

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