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Proceeds of Crime and Anti-Money Laundering Act

Prior to the enactment of the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA) in December 2009, Anti-Money Laundering initiatives in the country were spearheaded by the National Taskforce on Anti-Money Laundering and Combating the Financing of Terrorism (NTF).  The NTF is a multi-disciplinary Taskforce comprising various government ministries, agencies and departments and was established through a gazette notice in 2003.

The Proceeds of Crime and Anti-Money Laundering Bill, 2009 received presidential assents on the 31st December, 2009 hence making it law. This law is the Proceeds of Crime and Anti-money Laundering Act, 2009 (the “Act”).  The Act creates a comprehensive legislative framework to combat the offence of money-laundering in Kenya and to provide for the identification, tracing, freezing, seizure and confiscation of the proceeds of crime among other things.

Anti-Money laundering legislation has come a long way since its inception in 2007. The government had published a bill in 2007 and another in 2008, none of which were passed into law during the years they were published.

Before the enactment of the Act, money laundering legislation in Kenya was weak and fragmented. Money laundering was primarily being dealt with under the Narcotic Drugs and Psychotropic Substances (Control) Act, 1994 (the “Narcotics Act”) which only dealt with proceeds of drug trafficking and the Central Bank of Kenya Guideline on Proceeds of Crime and Money Laundering (Prevention)(the “CBK Guideline”) which only applies to banking institutions licensed under the Banking Act.

The Act, which repeals the anti-money laundering provision in the Narcotics Act, applies to all persons whether individual or corporate and to the proceeds from any criminal activity. The CBK Guideline however continues in force and banking and financial institutions will therefore be required to comply with both the Act and the CBK Guideline.

 

Financial Reporting Centre

The Financial Reporting Centre (FRC) (Kenya’s Financial Intelligence Unit) is established under section 21 of the Proceeds of Crime and Anti-Money Laundering Act, 2009. The FRC is an independent body whose principal objective is to assist in the identification of the proceeds of crime and combating money laundering. The FRC became operational on April 12, 2012.

 

AML Advisory Board

The FRC works under the strategic guidance of the Anti-Money Laundering Advisory Board (AML Board) which is established under section 49 of POCAMLA. The mandate of the AML Board is to advise the Director General of the Financial Reporting Centre (FRC) generally on the performance of his functions and the exercise of his powers under the Act.

Highlights

  • Public Notice - Amendments to entries in the ISIL(DA'ESH) & AL-QAEDA Sanctions List

    Amendments to entries in the ISIL(DA'ESH) & AL-QAEDA Sanctions List

     
  • Draft Proliferation Financing Regulations, 2023

    Following the passage of the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Act, 2023, which commenced operation on 15th September, 2023, the Ministry of Interior and National Administration is conducting public participation on the draft Prevention of Terrorism (Implementation of the United Nations Security Council Resolutions on the Prevention, Suppression and Disruption of Proliferation Financing) Regulations, 2023. Government Agencies, relevant stakeholders and members of the general public are invited to submit their comments on the Draft Regulations. The documents can be downloaded from the Link Below:

                   a. draft Proliferation Financing Regulations, 2023

                   b. Template for Comments - Draft Proliferation Financing Regulations, 2023

                   c. PUBLIC PARTICIPATION NOTICE - PF REGULATIONS

     

     
  • AML/CFT Guidance for Casinos

    As part of its supervision of the casino sector, the Centre has developed the AML/CFT Guidance for the sector. We are now inviting all relevant stakeholders and members of the general public to submit their comments on the Guidance. Please see below;

    - AML/CFT Guidance for the Casino sector
    - The public notice inviting comments
    - Template for submission of comments and the draft guidance.

    Submissions to be sent to This email address is being protected from spambots. You need JavaScript enabled to view it. by 5 PM on 27th October,2023.

     
  • Fund Regulation Proceeds of Crime and Anti-money Laundering (Criminal Asset Recovery Fund) Regulations, 2023

    Fund Regulation Proceeds of Crime and Anti-money Laundering (Criminal Asset Recovery Fund) Regulations, 2023

     
  • Mutual Evaluation Report For KENYA

    Kenya’s Mutual Evaluation Report (MER) was adopted by the ESAAMLG Council of Ministers in September 2022 at its meeting in Livingstone, Zambia and subsequently published on the ESAAMLG website on November 11, 2022. The MER summarises the AML/CFT/CPF regime in the country also provides recommendations on how the country’s AML/CFT/CPF regime can be strengthened. A copy of the MER can be downloaded here.

     

International Organizations

Contacts

User: Director General 
 Address: Old Mutual Tower 13th Floor,
      Upper Hill Road,
     
P.o.Box Private Bag - 00200,
     Nairobi Kenya

 

  

Phone: 254  709 858000
Phone: http://www.frc.go.ke
 FRC Kenya @FRC_Kenya