Kenya added to EU's high-risk list for money laundering, terrorism financing deficiencies
Kenya was added this week alongside Algeria, Angola, Côte d'Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal and Venezuela.
The European Commission has included Kenya in its updated list of high-risk jurisdictions presenting strategic deficiencies in their national anti-money laundering and countering the financing of terrorism Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) rules and regulations.
Kenya was added this week alongside Algeria, Angola, Côte d'Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal and Venezuela.
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In a statement, the commission said the affected countries are required to apply enhanced vigilance in transactions in accordance with the AML/CFT framework. While the list is part of the commission's efforts to protect the EU financial system, it's also an indication of the rise of two serious and transnational crimes in the country.
In February last year, the Financial Action Task Force (FATF) officially placed Kenya on the grey list for international Anti-Money Laundering, Countering the Financing of Terrorism, and Proliferation of Weapons of Mass Destruction.
Countries on the grey list are those actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing.
The listing meant Kenya needed to up its monitoring and actions that seal these gaps to ensure compliance.
The EU commission has at the same time, delisted a few countries from its list.
They include: Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, Uganda, and the United Arab Emirates.
The Commission is closely involved in monitoring the progress of the listed jurisdictions, helping them to fully implement their respective action plans agreed with FAFT.
Article 9 of the 4th Anti-money Laundering Directive (4AMLD) mandates the Commission to regularly update the list of high-risk third-country jurisdictions.
"The updated list takes into account the work of the Financial Action Task Force (FATF) and, in particular, its list of 'Jurisdictions under Increased Monitoring'. As a founding member of FATF, alignment with FATF is important for upholding the EU´s commitment to promoting and implementing global standards."
"The Commission has carefully considered the concerns expressed regarding its previous proposal and conducted a thorough technical assessment, based on specific criteria and a well-defined methodology, incorporating information collected through the FATF, bilateral dialogues and on-site visits to the jurisdictions in question," the statement added.
The update of the list takes the legal form of a delegated regulation, which will enter into force after scrutiny and non-objection of the European Parliament and the Council within a period of one month (which can be prolonged for another month).
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