House team clears law targeting risky financial dealings to curb money laundering
Betting firms, landlords, retirement benefits schemes, Sacco owners, estate agents, certified public secretaries, jewel dealers, accountants, and NGO managers are among those expected to be closely monitored.
The betting industry, NGOs, landlords, and several professional groups could soon face stricter government oversight, following approval of a major anti-money laundering Bill.
The National Assembly's Departmental Committee on Justice and Legal Affairs (JLAC), chaired by Tharaka MP George Murugara, has backed the Anti-Money Laundering and Countering Terrorism Financing Laws (Amendment) Bill, 2025.
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The committee has called for the Bill to be passed with the amendments it has proposed.
“The Bill is necessary to ensure compliance with global standards of anti-money laundering and combating terrorism financing,” the committee stated in its report.
The draft law, pushed by President William Ruto’s administration, aims to bring more sectors under scrutiny.
Betting firms, landlords, retirement benefits schemes, Sacco owners, estate agents, certified public secretaries, jewel dealers, accountants, and NGO managers are among those expected to be closely monitored.
To increase oversight on civil society groups, the committee gave the green light for the Public Benefits Regulatory Authority to monitor and report NGO financial activities.
The goal is to “safeguard civil society groups from the risk of money laundering and terrorism financing.”
Jewellery dealers, producers of precious minerals, and those involved in the retail selling of precious stones will also be regulated.
Fresh rules
The director of mines is expected to issue fresh rules to control the sector and vet applicants for mineral rights.
Betting firms will now fall under more intense monitoring by the Betting Control and Licensing Board (BCLB).
The board is expected to vet major shareholders, directors, senior staff, and beneficial owners of betting companies. On-site and off-site supervision will also be enhanced.
The move follows Kenya’s greylisting by the Financial Action Task Force (FATF) in February 2023 due to gaps in its efforts to fight money laundering. Failure to improve compliance could see the country blacklisted, which would harm its economy.
In its report, the committee also granted more authority to the Financial Reporting Centre. The body will now be able to block funds from being directed to entities linked to money laundering or terrorism.
Sacco members, directors, officers, and agents will be vetted, and all dealings will need to meet new anti-money laundering standards. The Retirement Benefits Authority will also oversee vetting in pension schemes.
The Institute of Certified Public Accountants of Kenya (ICPAK) will enforce compliance among its members.
“ICPAK would vet proposed members of a reporting institution and compel accountants to produce documents on demand,” the report noted.
The Law Society of Kenya had pushed for more legal changes, but the committee declined, saying, “The proposals could be introduced as substantive amendments in the future.”
Entities or individuals who fail to report suspicious transactions to the Financial Reporting Centre risk a fine of Sh10 million, a jail term of seven years, or both. Organisational breaches could attract penalties of Sh20 million.
If adopted by the full House, the law is expected to increase Kenya’s standing in global financial systems by sealing gaps that allow illicit cash flow and potential terrorist funding.
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