Kenya’s gold dealers must now report cash transactions over Sh1.9 million to combat money laundering. This comes as the country works towards exiting the FATF grey list, highlighting increased scrutiny on its financial sector.
The proposed regulations in Kenya mandate gold dealers and precious metals traders to report any cash sales exceeding Sh1.9 million. This initiative aims to combat money laundering and facilitate Kenya’s removal from the Financial Action Task Force (FATF) grey list, which was implemented due to the nation’s difficulties in dealing with financial crimes.
Since being placed on the grey list in February the previous year, the scrutiny on Kenya’s financial sector has increased significantly. This has resulted in more stringent monitoring of international transactions conducted through local banks, as authorities enforce regulation compliance to mitigate illicit financial flows.
An amendment to the Proceeds of Crime and Anti-Money Laundering Act, proposed by Majority Leader Kimani Ichung’wah and tabled in the National Assembly, seeks to align precious metals dealers with the reporting obligations already established for banks and financial institutions. These institutions are obligated to report large cash transactions to help diminish financial malpractice and improve transparency within the sector.
In summary, Kenya’s initiative to enforce cash transaction reporting for gold dealers exceeding Sh1.9 million marks a significant step towards tightening regulations against financial crimes. This move aligns with the nation’s objectives to mitigate money laundering, adhere to international standards, and ultimately secure its removal from the FATF grey list. The proposed amendment signifies a comprehensive effort to enhance financial integrity across various sectors in Kenya.
Original Source: ntvkenya.co.ke
