Kenya passes revised anti-money laundering law after grey listing » Capital News
NAIROBI, Kenya, Apr 16 – The National Assembly has passed a revised anti-money laundering and counter-terrorism financing law in response to the country’s inclusion on the Financial Action Task Force (FATF) grey list.
The amendments, part of the Proceeds of Crime and Anti-Money Laundering (Amendment) Bill, 2023, aim to strengthen the legal framework around financial transparency and compliance with international obligations.
The law introduces tighter regulatory oversight on financial institutions, expands the powers of the Financial Reporting Centre (FRC), and mandates stricter reporting obligations for suspicious transactions.
It also enhances penalties for non-compliance and outlines clearer mechanisms for asset recovery.
Kenya was placed on the FATF grey list in February 2024, triggering concerns over the country’s financial reputation and its ability to attract foreign investment.
The grey listing followed findings that Kenya had strategic deficiencies in combating money laundering and terrorism financing.
Speaking during debate in Parliament on Wednesday, lawmakers underscored the urgency of the legislation.
Majority Leader Kimani Ichung’wah warned the country risked isolation.
“Failure to act decisively would mean continued scrutiny and potential financial isolation. This law is a critical step toward restoring investor confidence and economic stability.”
The new law also seeks to align Kenya with recommendations from the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), which has been working closely with Kenyan regulators to implement corrective measures.
Once enacted, the legislation will empower regulators to crack down on illicit financial flows, blamed for eroding public trust, fuelling corruption, and enabling criminal enterprises.
The passage of the bill now paves the way for its assent by President William Ruto, as the government races to demonstrate compliance with FATF benchmarks ahead of the next evaluation.