Clari5 Market Insights


Central Bank of Kenya

ML / TF National Risk Assessment Report (NRA)

Central Bank of Kenya Launches Money Laundering / Terrorism Financing National Risk Assessment Report

By when must banks comply with the mandate?

With immediate effect.

Why has Central Bank of Kenya (CBK) issued the new mandate?

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.

Highlights of the mandate

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:

  • Data digitization is recommended to facilitate the update of withdrawal and addition of charges in the Judiciary and to shift from the current format for drafting charges where the focus is on the number of charges as opposed to the nature of charges.
  • All the financial sector and other designated non-financial business and professions supervisors should implement a risk-based approach and effectively supervise their respective sectors for compliance. Further, regulators should adopt group-wide supervision to mitigate cross-sector ML / TF threats when appropriate.
  • There is a need to conduct and continuously update sectoral and institutional risk assessment to establish the level of risk in various sectors for risk-based interventions to ML / TF threats in those sectors.

How Clari5 helps FIs in Kenya quickly comply with CBK’s mandates

Need More Information?