National Assembly Passes Groundbreaking Anti-Money Laundering and Terrorism Financing Bill

In a decisive move to strengthen its legal response to financial crimes, the National Assembly has passed the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2025. The Bill, sponsored by Majority Leader Kimani Ichung’wah, addresses critical gaps in Kenya’s framework for combating money laundering, terrorism financing, and the proliferation of weapons.The new legislation amends ten key Acts of Parliament, all designed to tackle financial crimes more effectively.

By adopting these amendments, Kenya is taking steps to align its laws with global standards, particularly those outlined by the Financial Action Task Force (FATF). This comes after Kenya’s recent placement on the FATF grey list, which highlighted deficiencies in the country’s financial crime prevention systems.Finance and Planning Committee Chair, Kuria Kimani, stressed the urgency of these reforms: “We are debating this Bill today because Kenya is currently on the FATF grey list.



Unless we act with urgency, the consequences could be severe and long-lasting.”The amendments aim to bring Kenya in line with international best practices, especially in addressing new challenges such as digital financial assets and emerging industries like online betting and savings and credit cooperatives (Saccos).One of the proposed amendments includes the inclusion of virtual assets and cryptocurrencies under scrutiny for terrorism financing, in response to the growing use of unregulated digital financial services.

Key Amendments to Key Legislation:The Proceeds of Crime and Anti-Money Laundering Act (Cap. 59A):The Bill introduces the appointment of a Director General to lead the Asset Recovery Agency, bringing its structure into alignment with other investigative bodies. Additionally, it classifies dealers in precious metals and stones as designated non-financial businesses, placing them under the regulatory supervision of the Financial Reporting Centre.

The Prevention of Terrorism Act (Cap. 59B):This amendment expands the definition of “terrorism financing” to include the collection, provision, or use of funds, property, and services for terrorism-related purposes. The Bill also criminalizes financing travel for terrorism activities, closing loopholes in the previous law.

The Betting, Lotteries and Gaming Act (Cap. 131):The Betting Control and Licensing Board will now have the power to regulate and supervise betting and gaming entities to ensure compliance with anti-money laundering, counter-terrorism financing, and counter-proliferation financing measures.The Retirement Benefits Act (Cap.

197):The amendment strengthens the Retirement Benefits Authority’s mandate to regulate and supervise pension schemes and entities involved in retirement benefits, ensuring they comply with anti-money laundering and terrorism financing laws.The Mining Act (Cap. 306):This amendment empowers the Director of Mining to oversee and enforce anti-money laundering and terrorism financing measures within the mining sector, expanding the regulatory framework to include this critical industry.

Other Acts Receiving Amendments Include:The Sacco Societies Act (Cap. 490B): Empowers the Sacco Societies Regulatory Authority to enforce compliance with anti-money laundering and terrorism financing regulations.The Accountants Act (Cap.

531): Strengthens the oversight powers of the Institute of Certified Public Accountants of Kenya.The Estate Agents Act (Cap. 533): Grants the Estate Agents Registration Board the authority to enforce compliance with financial crime prevention measures.

The Certified Public Secretaries of Kenya Act (Cap. 534): Enhances the regulatory powers of the Institute of Certified Public Secretaries.The Public Benefits Organizations Act (No.

18 of 2013): Allows the Public Benefits Organizations Regulatory Authority to oversee organizations vulnerable to terrorism financing.With these comprehensive amendments, Kenya is making significant strides to bring its laws up to par with international standards, ensuring that the country is better equipped to combat financial crimes and align with global expectations. The amendments aim to protect the integrity of Kenya’s financial systems while enhancing the country’s efforts to combat terrorism financing and money laundering.

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