Regulatory Alerts2023-08-14
Central Bank of Kenya Circular No. 2 of 2023 - Implementation of the Recommended Actions in the AML CFT MER of Kenya
The Central Bank of Kenya (CBK) has issued a circular to foreign exchange bureaus, money remittance providers, and digital credit providers addressing the recommendations in the AML/CFT Mutual Evaluation Report (MER). Kenya was recently referred to the Financial Action Task Force's (FATF) International Cooperative Review Group (ICRG) process due to weaknesses highlighted in its mutual evaluation. In order to avoid being placed on the FATF "grey list," which would have serious negative consequences, all stakeholders must take immediate and concrete actions to address the MER deficiencies. The CBK has provided a Matrix outlining the deficiencies and requires each institution to develop an Action Plan addressing these issues by August 31, 2023, submit a status report on the current situation regarding identified deficiencies and Recommended Actions by August 18, 2023, and a detailed status report outlining the implementation of the Action Plan by September 15, 2023.