Regulatory Alerts2023-11-06
Banking Circular No. 15 of 2023 - Highlights of the AML CFT (Amendment) Act 2023
The information provided in the document above is an important update on the amendments to the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Act in Kenya. This is a crucial matter, given that financial institutions play a critical role in preventing and detecting money laundering, terrorist financing, and other related financial crimes. The update provides a summary of key amendments to the AML/CFT Act, which includes the following: 1. The inclusion of Law Society of Kenya as a supervisory body for AML/CFT purposes 2. Express provision for countering financing of terrorism (CFT) and countering proliferation financing (CPF) 3. Mandatory submission of suspicious transaction reports (STRs) to the Financial Reporting Centre within two days after suspicion has arisen 4. Increased cash transaction reporting threshold from USD 10,000 to USD 15,000 5. Requirement to maintain all records of domestic and international transactions for seven years or for such longer period as is necessary 6. Introduction of definition of "proliferation acts" and criminalisation of financing of proliferation act The update concludes with instructions for financial institutions regarding the implementation of these amendments. This information is crucial for all financial institutions in Kenya to be aware of, understand, and implement the changes effectively. It's also vital that they keep complete records of actions taken pursuant to the new laws. Therefore, it is advisable for relevant stakeholders within the Kenyan financial services industry to familiarize themselves with these amendments and take appropriate measures to ensure compliance. This will help in protecting the financial system from abuse by criminals and contributing towards a safer and more secure financial environment.