CBK begins real-time monitoring of customer financial transactions
Through the system, CBK will strengthen its ability to surveil the entire banking sector as transactions occur, covering RTGS, PesaLink, and mobile money to boost oversight and detect risks.
The Central Bank of Kenya (CBK) has gained real-time power to monitor customer transactions under its new "Granular Data Integration" system, a move that marks a significant expansion of the regulator's supervisory reach.
Through the system, CBK will strengthen its ability to surveil the entire banking sector as transactions occur, covering RTGS, PesaLink, and mobile money to boost oversight and detect risks.
The move is part of Kenya's efforts to tighten its financial monitoring systems following a move by the Financial Action Task Force (FATF) to place Kenya on its grey list, a watchlist for weak controls on money laundering and terror financing, in February last year.
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In its annual Bank supervision report, CBK noted that Kenya made a high-level political commitment to address the deficiencies in its Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) framework as outlined in a tailored action plan developed by the FATF in collaboration with the Kenyan authorities.
"The action plan focused on measures to further enhance the effectiveness of Kenya's AML/CFT/CPF system," the report notes.
Some of the efforts include reviewing the institutional Money Laundering, Terrorism Financing, and Proliferation Financing risk profiles of financial institutions licensed by CBK to incorporate the findings of the updated national risk assessment of 2023.
The Virtual Assets Service Providers (VASPs) Bill of 2025 outlines licensing requirements, market entry controls, supervision, monitoring, and the implementation of Anti-Money Laundering and Combating the Financing of Terrorism (AML/ CFT) preventive measures for Virtual Assets Service Providers.
Once enacted, VASPs will be required to apply for licensing and comply with the Proceeds of Crimes and Anti-Money Laundering Act.
The Bill also proposes CBK and the Capital Markets Authority as the relevant regulatory authorities, with clear responsibilities based on the VASP activities.
CBK has also partnered with the UK Treasury to fight dirty money in non-bank institutions, in a deal that adds stricter checks to stop illegal cash and help Kenya exit the FATF grey list.
The government has also made it mandatory to open parallel terror-financing investigations alongside every terrorism case, in a bid to address concerns by the global money laundering and terror financing watchdog that placed the country on its grey list.
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