The Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2023, has been signed into law by President William Ruto. The new law will assist in addressing shortcomings that are impeding the nation’s efforts to combat money laundering and terrorism.
It permits the return of a wanted felon who agrees to be extradited to a requesting State. Eliminating the Financial Reporting Centre from the definition of a State Corporation also grants it operational independence. Additionally, the Capital Markets Authority has the authority to ensure that its licensees abide by the laws against money laundering, terrorism financing, and proliferation finance.
The Insurance Regulatory Authority now has the authority to ensure that its licensees are abiding by the rules against money laundering, combatting terrorism financing, and funding nuclear proliferation as a result of the recent development.
Additionally, it will harmonize the Financial Action Task Force (FATF) Standards with the licensing framework established by the Act. Financial institutions and representatives of reporting institutions will be under the Central Bank of Kenya’s (CBK) supervision.
The concept of “economic crime” in the Bill now includes laundering the proceeds of corruption.
The Climate Change (Amendment) Bill (National Assembly Bill No. 42 of 2023), which was released in July, also received the President’s approval.
The Bill improves response to climate change while also amending the Climate Change Act of 2016, allowing for regulation of the carbon markets.
It guarantees that carbon trading transactions conducted by the Act reduce greenhouse gas emissions.
It further states that, with the Cabinet’s consent, the Cabinet Secretary may enter into a bilateral or multilateral agreement to exchange carbon for emission reductions and removals.
