In a significant development, Kenya finds itself placed on the Financial Action Task Force (FATF) ‘grey list.’ This calls for intensified oversight to ensure adherence to global obligations in Anti-Money Laundering, Countering the Financing of Terrorism, and Weapons of Mass Destruction Proliferation (AML/CFT/CPF). This announcement, confirmed by Treasury CS Njuguna Ndung’u, underscores the urgency for swift action to bolster Kenya’s compliance efforts.
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Ndung’u highlighted Kenya’s proactive response to the assessment conducted by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) in 2022, which revealed a mixed picture of compliance. While acknowledging the challenges faced, Ndung’u emphasized the government’s commitment to implementing recommended actions swiftly and comprehensively.
One of the significant achievements mentioned by Ndung’u is the comprehensive overhaul of existing legislation through the enactment of the AML/CFT (Amendment) Act, 2023. This legislative reform, comprising 17 amendments, aimed at addressing various legal and technical compliance deficiencies identified in the Mutual Evaluation Report (MER).
Additionally, strategic interventions such as the designation of lawyers as reporting entities under the Proceeds of Crime and Anti-Money Laundering Act demonstrate Kenya’s proactive approach to strengthening its AML/CFT/CPF regime.
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Ndung’u stressed the importance of multilateral cooperation in addressing AML/CFT/CPF challenges and sought support from international partners, including the European Union (EU), United Kingdom (UK), and United States (US), for technical assistance. Collaboration and assistance from these partners are deemed crucial in enhancing Kenya’s regulatory institutions and expediting its exit from the grey list.
Despite the challenges posed by being on the grey list, Ndung’u assured minimal effects on the country’s financial stability and the costs of doing business in Kenya. He reaffirmed Kenya’s dedication to combating money laundering, terrorism financing, and proliferation risks, pledging the government’s commitment to addressing identified deficiencies promptly.
As Kenya continues its journey towards compliance and eventual exit from the FATF grey list, Ndung’u assured that adequate resources would be allocated, and comprehensive strategies would be developed to ensure timely compliance. The government remains steadfast in its efforts to manage domestic ML/TF/PF risks effectively and uphold its commitment to global financial integrity.
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