Kenya is proposing that gold dealers report cash sales exceeding Sh1.9 million under anti-money laundering regulations, aiming for removal from the FATF grey list. This follows increased scrutiny since being placed on the list due to money laundering and terrorism financing issues. The amendment aims to level reporting requirements for dealers in precious metals with banks and financial institutions.
Gold dealers in Kenya will be mandated to report all cash transactions exceeding Sh1.9 million as part of new anti-money laundering regulations aimed at assisting the nation in exiting the Financial Action Task Force (FATF) grey list. This initiative comes in response to Kenya’s placement on the grey list in February of the previous year, attributed to deficiencies in combatting money laundering and terrorist financing, which has resulted in intensified scrutiny of the financial sector.
The proposed amendment to the Proceeds of Crime and Anti-Money Laundering Act, introduced by Majority Leader Kimani Ichung’wah in the National Assembly, aims to subject gold, silver, and diamond dealers to the same reporting obligations as banks and other financial entities. Such measures are intended to ensure that large cash transactions are monitored and reported to relevant authorities, thereby aiding in the detection and prevention of illicit financial flows.
In conclusion, the requirement for gold dealers in Kenya to report substantial cash transactions is a crucial step towards enhancing financial transparency and integrity. It is essential for aiding the nation’s efforts to be removed from the FATF grey list by addressing weaknesses in monitoring financial transactions related to money laundering and terrorist financing.
Original Source: ntvkenya.co.ke
