Kenya proposes regulations requiring gold dealers to report cash sales over Sh1.9 million. This initiative is part of efforts to exit the FATF grey list due to past deficiencies in combating money laundering and terrorist financing. The amendment aligns precious metal dealers with existing financial institutions, enhancing transaction monitoring.
Under proposed anti-money laundering regulations, gold dealers in Kenya will be required to report all cash transactions exceeding Sh1.9 million. This measure aims to assist the country in exiting the Financial Action Task Force (FATF) grey list, into which it was placed due to deficiencies in its combat against money laundering and terrorist financing.
The recommendation to amend the Proceeds of Crime and Anti-Money Laundering Act was introduced by Majority Leader Kimani Ichung’wah. It seeks to standardize reporting requirements for precious metal dealers, aligning them with those of banks and financial entities, which must flag large cash transactions to deter illicit financial activity.
This move follows increased scrutiny of Kenya’s financial sector due to its grey listing, including stricter oversight on international banking transactions. The objective is to enhance regulatory compliance and improve the integrity of the financial system in Kenya.
The proposed regulations signify a significant step towards tightening financial regulations in Kenya, with the aim of addressing weaknesses in combating money laundering and enhancing the monitoring of large cash transactions. By extending reporting obligations to gold dealers, authorities seek to align various financial sectors in their efforts to combat financial crimes and potentially exit the FATF grey list.
Original Source: ntvkenya.co.ke
