President William Ruto has signed the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2023 into law.
The new law will help address deficiencies limiting the fight against money laundering and terrorism in the country.
It allows for the surrendering of a fugitive criminal who consents to be extradited to a requesting State.
It also grants the Financial Reporting Centre operational independence by excluding it from the definition of State Corporation.
Furthermore, Capital Markets Authority has been empowered to enforce the compliance of its licensees with the laws on anti-money laundering and combating terrorism financing and proliferation financing.
Under the new development, the Insurance Regulatory Authority now has the power to enforce the compliance of its licensees with the laws on anti-money laundering and combating terrorism financing and proliferation financing.
It will also harmonises the licensing regime under the Act with the Financial Action Task Force (FATF) Standards.
The Central Bank of Kenya (CBK) will supervise financial institutions and agents of reporting institutions.
The Bill has included the laundering of the proceeds of corruption under the definition of “economic crime”.
Meanwhile, the President also assented to the Climate Change (Amendment) Bill (National Assembly Bill No. 42 of 2023), which was published in July.
The Bill amends the Climate Change Act, 2016, providing for the regulation of the carbon markets besides enhancing response to climate change.
It provides transactions in carbon trading as carried out under the Act reduces greenhouse gas emissions.
The Cabinet Secretary, it adds, can enter into a bilateral or multilateral agreement to trade carbon for emission reductions and removals with the approval of the Cabinet.