MPs approve Bill seeking stricter rules on saccos, NGOs and betting firms

Capital Markets Authority CEO Wyckliffe Shamiah when he appeared before the National Assembly's Finance and National Planning committee in consideration of the Anti - Money laundering and combating of Terrorism financing laws (Amendment ) Bill, 2023 at the Parliament buildings, Nairobi . August 16th,2023. [Elvis Ogina, Standard] The National Assembly has now passed proposed laws to combat money laundering and terrorism. The Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2025, seeks to align the country's laws with the global standards. Once signed into law, Saccos, NGOs, betting firms and mining organisations will be required to comply with stricter regulations. The civil society organisations will be expected to be fully declare their financial sources or face closure. The Public Benefit Organisations Regulatory Authority (formerly NGOs Co-ordination Board), will be required to report their finances to the government. The Bill's adoption has also provided for the appointment of 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. "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 the Finance and Planning Committee Chairman, Kuria Kimani. Concerned about the proliferation of unregulated digital assets and financial services such as Saccos and betting companies, he said: "One of the amendments I'll be proposing is to include virtual assets and cryptocurrencies under anti-terrorism scrutiny." The Betting Control and Licensing Board will also be tasked with monitoring betting firms for money laundering, with all betting sites in the country further required to disclose transactions potentially linked to illicit financial flows. Bettors will also be required to comply with customer verification processes to prevent fraud and illicit financial flows. "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," reads the Bill. Majority Leader Kimani Ichung'wah warned that the country was at a risk of financial isolation had it not passed the Bill. "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," he said. Those in the mining sector will further undergo stricter scrutiny on exports and their financial flows in a bid to prevent money laundering. Mining companies must now report suspicious transactions and ensure all financial dealings are legitimate. "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," adds the Bill. Moreover, Saccos will have stricter financial monitoring going forward, and will be required to report suspicious transactions and ensure their funds are not linked to illicit activities. And with the MPs giving the Bill a green light, the Retirement Benefits Act has been strengthened and mandated to regulate, supervise and enforce compliance of the entities under its watch for anti-money laundering, counter financing of terrorism, and counter-proliferation financing. Accountants will also have the powers to regulate and supervise matters relating to anti-money laundering, counter-financing of terrorism, and counter-proliferation financing. This was achieved through the amendment of the Accountants Act (Cap. 531) which now empowering the Institute of Accountants. Kenya was placed on the FATF grey list in February last year, exposing concerns over the country's financial reputation and its ability to attract foreign investment. The development came after findings that the country lacks sufficient mechanisms in combating money laundering and terrorism financing. Last week, it emerged Kenya could continue losing billions of shillings in tax revenues through illicit financial flows due to weak implementation of laws, limited cooperation among government agencies, and letting off offenders with minimal or no penalties. Consequently, the office of the Auditor General called for an enhancement of the country's legal framework to address money laundering and illicit financial flows.

MPs approve Bill seeking stricter rules on saccos, NGOs and betting firms

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MPs approve Bill seeking stricter rules on saccos, NGOs and betting firms

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