Kenya plans to mandate gold dealers to report cash sales over Sh1.9 million as part of anti-money laundering regulations to address its grey list status with the Financial Action Task Force (FATF). This amendment seeks to align regulations of precious metals dealers with those of banks, ensuring better monitoring of cash transactions to combat illicit financial flows.
Under new proposed regulations, dealers in precious metals and stones in Kenya will be mandated to report all cash transactions surpassing Sh1.9 million. This initiative aligns with anti-money laundering efforts aimed at enabling Kenya to emerge from the Financial Action Task Force (FATF) grey list. The government instituted this measure following its placement on the list in February of the previous year due to deficiencies in addressing money laundering, terrorist financing, and the illicit arms trade.
The proposed amendment to the Proceeds of Crime and Anti-Money Laundering Act, introduced by Majority Leader Kimani Ichung’wah, aims to subject precious metals dealers, including those engaged in trading gold, silver, and diamonds, to reporting requirements comparable to those of banks and financial institutions. These regulations require institutions to identify and report substantial cash transactions to authorities, forming part of larger efforts to curb illicit financial flows.
In conclusion, the implementation of mandatory reporting for cash transactions exceeding Sh1.9 million by gold dealers represents a significant step towards bolstering Kenya’s financial regulations. This measure seeks to align the nation’s practices with international standards, thereby addressing issues of money laundering and enabling Kenya to potentially remove itself from the FATF grey list. Such regulatory enhancements reflect a commitment to improving the integrity of the financial sector and mitigating risks associated with illicit financial activities.
Original Source: ntvkenya.co.ke
