MANDATE
The Central Bank of Kenya is responsible for supervising and enforcing the compliance with the Proceeds of Crime and Anti-Money Laundering Act, 2009 and attendant Regulations of financial institutions under its purview:
- Commercial Banks
- Mortgage Finance Companies
- Microfinance Banks
- Money Remittance Providers
- Foreign Exchange Bureaus
- Digital Credit Providers
- Payments Service Providers
- Mortgage Refinance Companies
In exercising this mandate, CBK seeks to ensure that Kenya’s financial system and the broader economy is protected from the threats of money laundering and the financing of terrorism and proliferation. This contributes to strengthening of financial sector integrity and enhancement of safety and security of the country.
LEGISLATION
Kenya is committed to full implementation of international standards on tackling money laundering, terrorism and proliferation financing as set by the Financial Action Task Force (FATF)[1].
Kenya’s primary legislative framework enacted to combat money laundering and countering the terrorism and proliferation financing (AML/CFT/CPF) consists of the:
- Proceeds of Crime and Anti Money Laundering Act, 2009 (POCAMLA)
- Proceeds of Crime and Anti Money Laundering Regulations, 2013
- Prevention of Terrorism Act, 2012 (POTA)
- Prevention of Terrorism (Implementation of the United Nations Security Council Resolutions on Suppression of Terrorism) Regulations, 2013
Pursuant to section 33(4) of the Banking Act, Central Bank of Kenya has also issued a Guideline on Anti-Money Laundering and Combating the Financing of Terrorism.
[1] The Financial Action Task Force (FATF) is the global money laundering, terrorism and proliferation financing watchdog. The inter-governmental body sets international standards that aim to prevent these illegal activities and the harm they cause to society.
REPORTS
Mutual Evaluation Report of Kenya, September 2022
Kenya underwent an Anti-Money Laundering, Counter Terrorist Financing and Counter Proliferation Financing (AML/CFT/CPF) assessment by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG). This was aimed at assessing Kenya’s compliance with global AML/CFT/CPF standards as set by Financial Action Task Force (FATF).[1]
ESAAMLG published the Mutual Evaluation Report of Kenya (September 2022) on November 9, 2022.
This report summarises the AML/CFT measures in place in the Republic of Kenya as at the date of the on-site visit which took place in 2022. It analyses the level of compliance with the Financial Action Task Force (FATF) standards and the level of effectiveness of Kenya’s AML/CFT system and provides recommendations on how the system could be strengthened. Read more
NATIONAL RISK ASSESSMENT
Money Laundering (ML) and Terrorism Financing (TF) National Risk Assessment (NRA) is a self-assessment process through which a country deepens its understanding of its unique money laundering and terrorism financing landscape. The output of the NRA process is a report detailing a country’s specific risk profile as well as a corresponding strategy and an action plan to mitigate identified risks.
The NRA was carried out by a Taskforce gazetted in 2019, through a consultative process aligned to international Anti-Money Laundering/Combatting Financing of Terrorism (AML/CFT) standards, involving both the public and private sectors.
The Money Laundering and Terrorism Financing National Risk Assessment Report (NRA) was launched on July 27, 2022.
The report is the output of a self-assessment process through which the country sought to understand its unique money laundering and terrorism financing landscape. The report details a country’s specific risk profile as well as a corresponding strategy and an action plan to mitigate identified risk areas. Read more
Read the CBK Press Release on the launch of the NRA report here…
Read the pull-out on the NRA report published on Daily Nation here…
[1] The Financial Action Task Force (FATF) is the global money laundering, terrorism and proliferation financing watchdog. The inter-governmental body sets international standards that aim to prevent these illegal activities and the harm they cause to society.
CBK Survey on the Cross-Border Movement of Physical Cash
One of the key strategic objectives of the Central Bank of Kenya (CBK) is to enhance integrity within the banking sector by tightening controls over the cross-border movement of physical cash. This issue was also highlighted in Kenya’s Mutual Evaluation Report (MER) by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), published in 2022.The MER noted that Kenyan authorities had not sufficiently addressed money laundering and terrorism financing (ML/TF) risks related to cross-border movement of cash during the National Risk Assessment (NRA).
In April 2025, as part of efforts to further strengthen the national Anti-Money Laundering, Combating the Financing of Terrorism, and Countering Proliferation Financing (AML/CFT/CPF) framework, CBK conducted a comprehensive survey on the cross-border movement of physical cash within the banking sector. The survey sought to better understand cash transportation patterns, preventive measures and related challenges.
Banks and mortgage finance companies are encouraged to review the survey findings to better understand the cross-border transportation of physical cash, current challenges and CBK’s approach to enhance AML/CFT/CPF measures.
A copy of the survey report can be accessed here…
Preventive Measures Survey: Targeted Financial Sanctions
The Central Bank of Kenya (CBK) conducted a survey to evaluate the progress of financial institutions under its supervisory mandate in implementing key Anti-Money Laundering, Combating the Financing of Terrorism, and Proliferation Financing (AML/CFT/CPF) preventive measures. The survey focused on six critical areas: Customer Due Diligence (CDD), Enhanced Due Diligence (EDD), Politically Exposed Persons (PEPs), Suspicious Transaction Reports (STRs), AML/CFT/CPF Training, and Targeted Financial Sanctions (TFS).
This report presents an in-depth analysis of the responses specifically related to Targeted Financial Sanctions, given their vital role in disrupting the financial networks of designated individuals and entities amid increasingly complex global sanctions regimes. It highlights the current state of compliance, identifies key challenges, and evaluates the effectiveness of TFS-related preventive measures across the banking sector.
A copy of the survey report can be accessed here…
UPDATES
1267 List (Al-Qaida Sanctions List)
This list is maintained by the 1267 Committee, a committee established by the United Nations Security Council Resolution 1267. This list contains information on individuals and groups involved with Al-Qaeda. This list is available on the United Nation’s website in 3 formats; PDF, XML and HTML (click to see list).
Financial Action Task Force (FATF) High-Risk Jurisdictions subject to a Call for Action
High-risk jurisdictions have significant strategic deficiencies in their regimes to counter money laundering, terrorist financing, and financing of proliferation. For all countries identified as high-risk, the FATF calls on all members and urges all jurisdictions to apply enhanced due diligence, and, in the most serious cases, countries are called upon to apply countermeasures to protect the international financial system from the money laundering, terrorist financing, and proliferation financing (ML/TF/PF) risks emanating from the country.