Kenya, due to its geographic placement in Africa is a natural trade and financial hub. Mobile banking far surpasses cash transactions in the formal economy. Kenya also has some of the most sophisticated financial infrastructure in Africa. Yet, Kenya is vulnerable to money laundering, financial fraud, and terrorism financing. Money laundering occurs in the formal and informal sectors, deriving from both domestic and foreign criminal operations, including transnational organized crime; cybercrime; corruption; trafficking of drugs, illegal timber, charcoal and wildlife; smuggling and trade-based money laundering; and counterfeit goods. CBK is seeking to tighten the implementation of laws to combat ML / TF.
On July 27, 2022, CBK launched the ML / TF National Risk Assessment Report (NRA). The report identifies and assesses Kenya’s ML / TF risks at a national and sectoral level. The recommendations in the NRA are: