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Section 4 (a) of the Statutory Instrument Act, 2013 provides that “the object of this Act is to provide a comprehensive regime for the making, scrutiny, publication and operation of statutory instruments by requiring regulation-making authorities to undertake appropriate consultation before making statutory instruments”. In addition, Section 5 (3) of the Statutory Instrument Act, 2013 states that “without limiting by implication the form that consultation referred to in subsection (1) might take, the consultation shall—

  1. involve notification, either directly or by advertisement, of bodies that, or of organizations representative of persons who, are likely to be affected by the proposed instrument; or
  2. invite submissions to be made by a specified date or might invite participation in public hearings to be held concerning the proposed instrument”.

In this regard, the National Treasury has finalized preparing the Proceeds of Crime and Anti-Money Laundering (Criminal Assets Recovery Fund) (Administration) Regulations, 2020. These Regulations have been posted to the National Treasury website www.treasury.go.ke, and the Financial Reporting Centre website https://www.frc.go.ke/assets-recovery-agency.html.

Pursuant to Section 4 (a) and 5 (3) (a) and (b) of the Statutory Instrument Act, 2013, the National Treasury invites interested members of the public to submit any comments or inputs or memoranda they may have on the said Regulations in the format provided on the website. The comments or inputs or memoranda may be forwarded to the Principal Secretary, National Treasury, P.O. Box 30007-00100, Nairobi; hand delivered to the Office of the Principal Secretary, National Treasury Building, Nairobi or emailed to This email address is being protected from spambots. You need JavaScript enabled to view it.,  to be received by Friday 28th August, 2020 at 5.00 pm.

 

 

JULIUS M. MUIA, PHD, CBS

PRINCIPAL SECRETARY/NATIONAL TREASURY

Objectives:

The Financial Reporting Centre (FRC) (Kenya’s Financial Intelligence Unit) is established by Section 21 of POCAMLA. It is an independent body whose principal objective is to assist in the identification of the proceeds of crime and combating money laundering.

The other objectives of the FRC are to:

  • Make information collected by it (FRC) available to investigating authorities and supervisory bodies to facilitate the administration and enforcement of the laws of Kenya;
  • Ensure compliance with international standards and best practice in anti-money laundering measures;
  • Exchange information on money laundering activities and related offences with similar bodies in other countries.

 

FRC’s Powers and Functions

Under POCAMLA, the FRC has extensive functions and powers. These include:

  1. Implementation of registration system for Reporting Institutions;
  2. Receipt and analysis of reports of unusual or suspicious transactions and cash transaction reports made by Reporting entities as well as cash declaration forms received from border points;
  3. Dissemination of Reports received under the Act to appropriate law enforcement authorities or other supervisory body for further handling;
  4. Undertaking inspection and supervision of reporting institutions to ensure compliance with AML/CFT reporting obligations as prescribed in POCAMLA;
  5. Facilitating exchange of information on money laundering activities with other financial intelligence units in other countries;
  6. Formulating policies on anti-money laundering in consultation with the Board.
  7. Developing AML/CFT Regulations to provide guidance to support implementation of the Act;
  8. Developing AML/CFT training programs for reporting institutions.
  9. Compiling of statistics and records;
  10. Dissemination of information within Kenya or elsewhere, and make recommendations arising out of any information received;
  11. Issuing guidelines to reporting institution and advising the Minister;
  12. Creation and maintenance of a database of all reports of suspicious transactions, related Government information and such other materials as the Director may from time to determine to be relevant to the work of the Centre.

Download Public Notice

Download Legal Notice

Download Template for receiving comments

Section 4 (a) of the Statutory Instrument Act, 2013 provides that “the object of this Act is to provide a comprehensive regime for the making, scrutiny, publication and operation of statutory instruments by requiring regulation-making authorities to undertake appropriate consultation before making statutory instruments”. In addition, Section 5 (3) of the Statutory Instrument Act, 2013 states that “without limiting by implication the form that consultation referred to in subsection (1) might take, the consultation shall—

  1. involve notification, either directly or by advertisement, of bodies that, or of organizations representative of persons who, are likely to be affected by the proposed instrument; or
  2. invite submissions to be made by a specified date or might invite participation in public hearings to be held concerning the proposed instrument”.

In this regard, the National Treasury has finalized preparing the Proceeds of Crime and Anti-Money Laundering (Criminal Assets Recovery Fund) (Administration) Regulations, 2020. These Regulations have been posted to the National Treasury website www.treasury.go.ke, and the Financial Reporting Centre website https://www.frc.go.ke/assets-recovery-agency.html.

Pursuant to Section 4 (a) and 5 (3) (a) and (b) of the Statutory Instrument Act, 2013, the National Treasury invites interested members of the public to submit any comments or inputs or memoranda they may have on the said Regulations in the format provided on the website. The comments or inputs or memoranda may be forwarded to the Principal Secretary, National Treasury, P.O. Box 30007-00100, Nairobi; hand delivered to the Office of the Principal Secretary, National Treasury Building, Nairobi or emailed to This email address is being protected from spambots. You need JavaScript enabled to view it.,  to be received by Friday 28th August, 2020 at 5.00 pm.

 

 

JULIUS M. MUIA, PHD, CBS

PRINCIPAL SECRETARY/NATIONAL TREASURY

The Anti-Money Laundering Advisory Board

The Anti-Money Laundering Advisory Board (AML Board) is established under section 49 of POCAMLA. The Board’s mandate under the Act is to advise the Director of the Financial Reporting Centre (FRC) generally on the performance of his functions and the exercise of his powers under the Act. The Board was officially launched by the Deputy Prime Minister and the then Minister for Finance on 24th June 2011.

 

Membership of the Board

  1. The Permanent Secretary, Treasury
  2. The Attorney General
  3. The Governor, Central Bank of Kenya
  4. The Inspector General, National Police Service
  5. The Chairman, Kenya Bankers’ Association
  6. The Chief Executive Officer, Institute of Certified Public Accountants of Kenya
  7. The Director General, National Intelligence Service
  8. The Director, Asset Recovery Agency
  9. Two other persons appointed by the Minister from the private sector
  10. The Director General, Financial Reporting Centre (Secretary to the Board)

Proceeds of Crime and Anti-Money Laundering Act

Prior to the enactment of the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA) in December 2009, Anti-Money Laundering initiatives in the country were spearheaded by the National Taskforce on Anti-Money Laundering and Combating the Financing of Terrorism (NTF).  The NTF is a multi-disciplinary Taskforce comprising various government ministries, agencies and departments and was established through a gazette notice in 2003.

The Proceeds of Crime and Anti-Money Laundering Bill, 2009 received presidential assents on the 31st December, 2009 hence making it law. This law is the Proceeds of Crime and Anti-money Laundering Act, 2009 (the “Act”).  The Act creates a comprehensive legislative framework to combat the offence of money-laundering in Kenya and to provide for the identification, tracing, freezing, seizure and confiscation of the proceeds of crime among other things.

Anti-Money laundering legislation has come a long way since its inception in 2007. The government had published a bill in 2007 and another in 2008, none of which were passed into law during the years they were published.

Before the enactment of the Act, money laundering legislation in Kenya was weak and fragmented. Money laundering was primarily being dealt with under the Narcotic Drugs and Psychotropic Substances (Control) Act, 1994 (the “Narcotics Act”) which only dealt with proceeds of drug trafficking and the Central Bank of Kenya Guideline on Proceeds of Crime and Money Laundering (Prevention)(the “CBK Guideline”) which only applies to banking institutions licensed under the Banking Act.

The Act, which repeals the anti-money laundering provision in the Narcotics Act, applies to all persons whether individual or corporate and to the proceeds from any criminal activity. The CBK Guideline however continues in force and banking and financial institutions will therefore be required to comply with both the Act and the CBK Guideline.

 

Financial Reporting Centre

The Financial Reporting Centre (FRC) (Kenya’s Financial Intelligence Unit) is established under section 21 of the Proceeds of Crime and Anti-Money Laundering Act, 2009. The FRC is an independent body whose principal objective is to assist in the identification of the proceeds of crime and combating money laundering. The FRC became operational on April 12, 2012.

 

AML Advisory Board

The FRC works under the strategic guidance of the Anti-Money Laundering Advisory Board (AML Board) which is established under section 49 of POCAMLA. The mandate of the AML Board is to advise the Director of the Financial Reporting Centre (FRC) generally on the performance of his functions and the exercise of his powers under the Act.

StopML

 Mandate

The Financial Reporting Centre (FRC, or the Centre) is a Government institution created by the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA) 2009, with the principal objective being to assist in the identification of the proceeds of crime and the combating of money laundering.

The Prevention of Terrorism Act (POTA) 2012 also mandates the Centre with the fight against financing of terrorism.  The Centre started operations in April 2012.

International Organizations

Contacts

User: Director General
Address: UAP Towers Upper Hill, 29th Floor,
     
P.o.Box Private Bag - 00200,
 
Nairobi Kenya

Email: info@frc.go.ke
Phone: 254-0709 858000

Phone: http://www.frc.go.ke
 FRC Kenya @FRC_Kenya