This guide explores the various businesses and organizations identified as reporting entities for purposes of AML (Anti-Money Laundering), CFT (Countering the Financing of Terrorism), and CPF (Countering Proliferation Financing) compliance in Kenya.
Recently, the Financial Reporting Centre (FRC) in Kenya directed Trust and Company Services Providers and Dealers of Precious Metals and Dealers of Precious Stones to register as reporting institutions with the FRC by 30th April 2024.
Considering Kenya’s continued commitment to AML/CFT/CPF compliance, in this guide, we provide businesses and organizations with the necessary information to determine whether they are reporting institutions under the Proceeds of Crime and Anti-Money Laundering Act, 2009 (POCAMLA) for purposes of AML/CFT/CPF compliance.
Regulatory background and legal provisions
Under Section 2 of the Proceeds of Crime and Anti-Money Laundering Act, 2009 (POCAMLA), financial institutions and Designated Non-Financial Businesses and Professions (DNFBPs) are identified as reporting entities. These entities must comply with obligations outlined in POCAMLA, the Prevention of Terrorism Act 2023, and other related laws concerning anti-money laundering, the prevention of terrorism financing, and proliferation financing measures.
Supervision over these reporting entities for AML (Anti-Money Laundering), CFT (Countering the Financing of Terrorism), and CPF (Countering Proliferation Financing) compliance is carried out by designated supervisory or self-regulatory organizations, with a special provision for legal practitioners as mentioned in the First Schedule of POCAMLA. However, the Financial Reporting Centre holds the overarching responsibility for supervising all reporting entities regarding anti-money laundering, terrorism financing prevention, and proliferation financing counter measures.
Reporting Institutions under POCAMLA
The following sectors/professions fall under the definition of Reporting Institutions under POCAMLA:
*Note that the list of reporting institutions above is subject to change depending on the nature of activities carried out by the institution in line with the definition of a Financial Institution under Section 2 of POCAMLA.
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W&T Advocates LLP are here to assist
At W&T Advocates, we work with you, our client, to consider every angle and equip you with the technical expertise and enhanced legal advice you need to manage risk through multiple lenses and comply with AML/CFT regulations in Kenya.
With regards to AML/CFT compliance, our services include:
- Helping clients to duly register as Reporting Institutions.
- Assisting businesses and organisations craft and refresh their AML/CFT strategies to align with evolving regulations.
- Considering the legislation’s focus on a risk-based strategy for mitigating money laundering threats, W&T Advocates excels in performing risk evaluations and training risk management teams in their execution.
- We offer training programs aimed at enhancing understanding and capability regarding critical AML/CFT updates. This is especially crucial at this moment as the scope of AML/CFT compliance is expanding for reporting entities, corporations, and oversight bodies.
- With a wealth of experience in reviewing AML/CFT programs, we evaluate adherence to regulatory standards and best practices on a global scale.
- We conduct assessments of Know Your Customer (KYC) data in relation to regulatory demands, identifying any deficiencies or omissions in data and documentation.
- Providing extensive support to businesses and organizations with regards to KYC procedures including direct engagement with customers to collect necessary information, carrying out corrective actions, and utilizing this data to generate valuable insights, such as risk assessments.
Read our AML/CFT Compliance series 2: Best Practices in the Online Gambling and Betting Sector – https://lnkd.in/eiwQC2bQ
Read our AML/CFT Compliance series 3: Registration and Compliance Requirements – https://lnkd.in/eyVuA5di
Editor’s note: Should you have any questions about this legal alert, please do not hesitate to contact:
Andrew Waithumbi Partner W&T Advocates LLP waithumbi@wtadvocates.com
Timothy Thambu Partner W&T Advocates LLP thambu@wtadvocates.com
Disclaimer
This article and guide has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, W&T Advocates LLP does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.
