Legislators Wednesday passed the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2025 with amendments.
Failure to pass the changes had led to the greylisting of Kenya over claims of fraud.
The Bill sponsored by the Leader of the Majority Party, Kimani Ichung’wah underwent its first reading in the House on Tuesday, March 4, 2025, seeks to address technical shortcomings in Kenya’s legal framework.
Finance and Planning Committee Chairman Kuria Kimani, emphasized the urgency of passing the Bill to avoid economic isolation.
“We are debating this Bill today because Kenya is currently on the Financial Action Task Force (FATF) grey list. Unless we act with urgency, the consequences could be severe and long-lasting,” said Kimani Kuria.
“One of the amendments I’ll be proposing is to include virtual assets and cryptocurrencies under anti-terrorism scrutiny,” he added, citing the rise of unregulated digital assets and financial services like betting and saccos.
Kenya had been placed on the FATF’s “grey list” due to its non-compliance with international standards.
This new legislation seeks to align the country’s laws with these global benchmarks on anti-money laundering, counter-terrorism financing, and proliferation financing.
The Bill has amendments to 10 existing Acts of Parliament relating to anti-money laundering, combating of financing of terrorism and proliferation acts.
The Proceeds of Crime and Anti-Money Laundering Act (Cap. 59A):
This amendment seeks to appoint a Director General as the head of the Asset Recovery Agency, aligning it with other investigative bodies.
It also aims to define dealers in precious metals or stones as designated non-financial businesses, placing them under the regulatory and supervisory purview of the Financial Reporting Centre.
The Prevention of Terrorism Act (Cap. 59B): This amendment defines “terrorism financing,” explicitly including the collection or provision of funds, property, and services for terrorist acts, as well as the financing of travel for terrorism purposes as offenses.
The Betting, Lotteries and Gaming Act (Cap. 131):
The Bill seeks to empower the Betting Control and Licensing Board to regulate and supervise entities within its jurisdiction for anti-money laundering, counter-terrorism financing, and counter-proliferation financing.
The Retirement Benefits Act (Cap. 197): Amendments aim to strengthen the mandate of the Retirement Benefit Authority to regulate, supervise, and enforce compliance among entities under its watch in the fight against money laundering, terrorism financing, and proliferation financing.
The Mining Act (Cap. 306):
The Director of Mining will be empowered to regulate, supervise, and enforce compliance with anti-money laundering, counter-terrorism financing, and counter-proliferation financing measures within the mining sector.
Other Acts that the Bill is proposing amendments to are, the Sacco Societies Act (Cap. 490B) by empowering the Sacco Societies Regulatory Authority, the Accountants Act (Cap. 531) by empowering the Institute of Accountants, the Estate Agents Act (Cap. 533) empowering the Estate Agents Registration Board, the Institute of Certified Public Secretaries Act, the Certified Public Secretaries of Kenya Act (Cap. 534), and the Public Benefits Organizations Act (No. 18 of 2013) by empowering the Public Benefits Regulatory Authority to oversee and monitor public benefit organizations that are at risk of terrorism financing in Kenya.
If the amendments are adopted, Kenya will move a step closer to being removed from the FATF grey list, a designation that currently affects the country’s international financial reputation and investor confidence.
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