Regulatory Alerts2023-10-18
Banking Circular No. 11 of 2023 - Request for Information on Unlicensed or Unauthorized MVTS
The Central Bank of Kenya (CBK) has recently conducted a sectoral risk assessment to evaluate the country's Money Laundering, Terrorist Financing, and Proliferation Financing (ML/TF/PF) risks. This study considered commercial banks, microfinance banks, money remittance providers (MRPs), foreign exchange (forex) bureaus, digital credit providers, and payment service providers as six sectors. The findings suggest that the banking sector is most vulnerable to ML/TF/PF risks due to its size, diverse products and services, clientele, and economic importance. Digital credit providers have the lowest risk. This sectoral risk assessment report serves as a guide for financial institutions to take into account while conducting their own institutional risk assessments and applying Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Countering Proliferation Financing (CPF) risk-based approach. The CBK has disseminated this report to financial institutions for reference and action purposes.