Gold dealers in Kenya will be required to report cash transactions over Sh1.9 million as part of new anti-money laundering regulations aimed at enhancing financial integrity and removing the country from the FATF grey list. This amendment applies to precious metals dealers and aligns their reporting requirements with those of banks.
Under proposed anti-money laundering regulations, gold dealers in Kenya will be mandated to report all cash sales exceeding Sh1.9 million. This measure aims to assist Kenya in exiting the Financial Action Task Force (FATF) grey list, on which it was placed in February of the previous year due to inadequacies in combating money laundering and related crimes.
The grey listing has resulted in increased scrutiny on Kenya’s financial sector, leading to stringent monitoring of international transactions that involve local banks. A proposed amendment has been introduced to the Proceeds of Crime and Anti-Money Laundering Act to expand reporting requirements to precious metals dealers, including those trading in gold, silver, and diamonds, aligning them with the obligations faced by banks and other financial institutions.
These financial institutions are already obligated to flag and report significant cash transactions to authorities as part of broader efforts to combat illicit financial activities. If passed, the amendment will enhance regulatory frameworks and governance while addressing concerns over financial integrity in the precious metals sector.
In summary, the proposed regulatory changes for gold dealers in Kenya signify a critical step towards enhancing the nation’s efforts in combating money laundering. By requiring the reporting of substantial cash transactions, the legislation aims to align the gold trade with existing financial institution obligations, thereby fortifying the country’s financial landscape and facilitating the removal from the FATF grey list.
Original Source: ntvkenya.co.ke
