Regulatory Alerts2015-12-11
Banking Circular No 12 of 2015 - Compliance with the AML-CFT Law
As a reminder to all commercial banks, mortgage finance companies, and microfinance banks in Kenya, the Central Bank has reiterated their obligations under the Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) laws, regulations, and Prudential Guidelines. The Central Bank will enforce actions against institutions that violate these guidelines, including penalties, removal of directors or senior management, and potential placement under receivership or liquidation. In an effort to further enhance the supervision of AML/CFT, the CBK has introduced two new returns: a quarterly return capturing data on exposure to ML/TF risks, and an annual self-assessment questionnaire evaluating internal controls against ML/TF risks. Financial institutions must ensure that submitted data is accurate. For further enquiries regarding the returns, contact the Director of Bank Supervision Department at the Central Bank of Kenya.