Kenya is seeking additional time to address the shortcomings that led to its inclusion in the Financial Action Task Force’s (FATF) ‘grey list’ last month. Despite this, the country pledges a prompt departure from the list ahead of the April review.
The grey list contains countries whose AML/CFT laws do not match international standards, leaving loopholes for criminals to use the conventional financial system to launder money finance terrorists.
While speaking to the European Union group of diplomats led by the Head of the European Union Delegation to Kenya Henriette Geiger, Prime Cabinet Secretary Musalia Mudavadi, informed a gathering that Kenya has formally requested FATF for an extension to effectively resolve the identified deficiencies, with the aim of swiftly exiting the list.
“I am certain that the upcoming FATF review in April 2024 will note the progress Kenya is making through legal and institutional reforms to ensure financial transparency, curb illicit financial flows and combat money laundering and terrorism financing,” Mr Mudavadi told a European Union diplomatic corp.
“In the meantime, Kenya has engaged FATF, seeking more time to allow for effective implementation of the necessary measures to check these vices.”
Mr Mudavadi said while the government has put in place several measures to curb money laundering and financing of terrorism, it is still facing several challenges, for which it seeks the European Union’s help.
Kenya was placed on the grey list on February 23, with the FATF noting that the country’s existing anti-money laundering and combating of financing of terrorism (AML/CFT) laws were still not up to international standards.
Kenya this year entered the grey list alongside Namibia, while Uganda, Barbados, Gibraltar, and the United Arab Emirates exited the listing during the last review on February 23.
Other African nations on the list of 21 countries are Tanzania, South Sudan, South Africa, Nigeria, Burkina Faso, Cameroon, Mozambique, Mali, Senegal, and the Democratic Republic of Congo.
Being on the grey list essentially means the international watchdog will now increasingly monitor Kenya, checking progress dealing with the said deficiencies.
