CGK governor Patrick Njoroge.[Photo/the-star.co.ke]
All banks have been directed to develop a money laundering and terrorism financing (ML/TF) risk assessment framework. The directive by Central Bank of Kenya requires all lenders to carry out a risk assessment exercise to determine their preparedness in fighting money laundering and terrorism.
The regulator also requires the banks to appoint a money laundering reporting officer.
The officer will be the central point of contact with the CBK.
By December 31 every year, banks shall provide CBK with a report on the results of their MT/TF risk assessment.
“The board of directors and senior management of an institution are expected to formulate and implement ML/TF risk assessment framework. The framework must be documented and made available for review by external auditors and CBK,” says the guidance note.