FATF urges Kenya to strengthen cryptocurrency supervision and strengthen AML policies
The Financial Action Task Force has ordered Kenya to step up efforts to prosecute money laundering activities.
The Kenyan Ministry of presentation The Financial Action Task Force (FATF) has also directed Kenya to improve its anti-money laundering and terrorist financing measures.
In a recent update, FATF added Namibia to its watch list and removed Uganda. This indicates a change in the monitoring countries’ compliance with international financial crime standards.
Kenya, along with South Africa and Nigeria, is under investigation by the FATF, which is in line with President William Ruto’s plans to attract investment to the country. These developments could increase Kenya’s foreign financing costs and impact trade dynamics.
Despite having a vibrant digital asset market, Kenya’s reluctance to adopt specific regulations for cryptocurrencies reflects the position of many African countries. The refusal raises the risk that Kenya will be added to the FATF’s gray list, which includes four other East African Community members.
The introduction of a regulatory framework to govern Kenya’s cryptocurrency market could equip local authorities with the tools to combat money laundering activities utilizing digital assets such as Bitcoin. These regulations will allow cryptocurrency transactions to be monitored and integrated into the Kenyan financial ecosystem, enhancing transparency and security.