The Proceeds of Crime and Anti-Money Laundering Act, 2009 (POCAMLA) provides for the offence of money laundering and introduces measures for combating the offence. One such measure is that financial institutions, estate agencies and designated non-financial businesses or professions such as casinos and dealers of metals and stones (collectively, the reporting agencies) are under duty to verify customer identity and to undertake customer due diligence on existing customers or clients. Parliament has now raised the bar of this duty.
Enhanced Customer Due Diligence
Through the Finance Act, 2018, the reporting agencies shall apply enhanced customer due diligence on business relationships and transactions with any person or company originating from countries identified by the Financial Action Task Force (FATF) as high risk of money laundering.
Further, the reporting agencies shall apply appropriate counter measures, proportionate to the risk profile of the countries subject to FATF or as advised by the Cabinet Secretary for Finance. These countermeasures include:
POCAMLA demonstrates the government’s commitment to enforce measures in sealing the gaps in the legislation with the increase of innovative financial startups and money remittance systems. The increased compliance procedures, due diligence requirements and counter measures will ensure both compliance with the law and maintain growth of the Kenyan economy.
Should you require further information on the POCAMLA, 2017 please contact: Noella Lubano or Geoffrey Muchiri
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