Kenya Placed on Grey List for Anti-Money Laundering

The Financial Action Task Force (FATF) has placed Kenya on its "grey list" of countries deemed at increased risk of money laundering, terrorism financing, and proliferation of weapons of mass destruction.

While this designation raises concerns, it also highlights Kenya's ongoing efforts to address these challenges and strengthen its compliance with international standards. Treasury Cabinet Secretary Njuguna Ndung'u has acknowledged the inclusion on the grey list, emphasizing the need for enhanced monitoring and swift action to improve compliance. This development follows a 2022 evaluation by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), which revealed areas requiring improvement.

The Kenyan government has responded proactively, enacting the AML/CFT (Amendment) Act, 2023, which comprehensively rebuilds existing anti-money laundering and counter-terrorism financing legislation. This act, along with amendments to the Proceeds of Crime and Anti-Money Laundering Regulations and revisions to the Prevention of Terrorism regulations, demonstrate Kenya's commitment to legal and regulatory reforms. To ensure adherence to the new regulations, the Central Bank of Kenya and other investigative authorities are conducting audits of banks, real estate agencies, and casinos.

Additionally, lawyers are collaborating with the Financial Reporting Centre (FRC) to identify and report suspicious activities. Ndung'u acknowledges and reiterates Kenya's unwavering dedication to addressing the pressing shortcomings. He says that collaboration with international partners and technical assistance will be vital in strengthening regulatory institutions and expediting removal from the grey list.