Enforcement Action Taken to Enhance Compliance by Reporting Institutions
The Financial Reporting Centre (the FRC) levied a monetary penalty of Kenya Shillings two hundred thousand (KES 200,000) in November 2025on a non-compliant DNFBP entity in the Casino Sector for its failure to take remedial actions as directed following an onsite inspection. In the said onsite inspection, the FRC identified areas of non-compliance, including gaps in the institutions Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) policies and procedures, gaps in the conduct of customer due diligence (CDD) and enhanced customer due diligence (EDD) measures, failure to conduct an independent audit, amongst other non-compliances. The FRC issued an action plan to the entity requiring it to take remedial actions for each identified non-compliance within a specified timeline. Failure to do so led to the imposition of the monetary penalty referenced above.
Similarly, the FRC has levied a monetary penalty of Kenya Shillings two hundred and fifty thousand (KES 250,000) in April 2026 on another non-compliant DNFBP entity in the Real Estate Sector for its failure to comply with an instruction to supply documentation to facilitate offsite monitoring, despite having been instructed to do so within set timelines by the FRC. Further, the entity was directed to supply the required documentation in addition to payment of the monetary penalty. The failure by the institution impeded the mandate of the FRC to effectively supervise the entity through the assessment of the entity’s level of compliance with the obligations under the relevant laws, necessitating the enforcement action taken.
All Reporting Institutions are called upon to implement the measures under the relevant laws and to adhere to any instructions, directions or rules issued by the FRC. Institutions are reminded of the criminal, civil and administrative penalties available under the relevant laws should non-compliances occur. The FRC shall take appropriate steps in accordance with the law where necessary to enforce compliance.
The FRC remains available to support Reporting Institutions to meet their obligations and any queries regarding compliance may be channelled via email to compliance@frc.go.ke.
