The Lower Eastern Times Opening The Third Eye
Related Articles
The European Union has added Kenya to its list of high-risk countries with significant shortcomings in combating money laundering and terrorism financing.
Click here to join our WhatsApp Channel
In a statement released on June 10, the EU Commission announced the inclusion of Kenya, along with Algeria, Angola, Côte d’Ivoire, Namibia, Laos, Lebanon, Monaco, Nepal, and Venezuela, in the list of third countries with strategic deficiencies in their Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) frameworks.
Conversely, the Commission removed Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, Uganda, and the United Arab Emirates from the list.
The EU’s decision follows the February 2024 plenary meeting of the Financial Action Task Force (FATF), which placed Kenya and Namibia on its grey list of jurisdictions under increased monitoring due to AML/CFT concerns.
“These countries have been identified as having strategic deficiencies in their AML/CFT regimes,” the EU Commission said, citing their inclusion in multiple FATF updates from 2024 to early 2025.
It emphasized the need to constantly adapt regulations to match evolving money laundering and terrorism financing risks.
Despite the listing, the EU acknowledged that Kenya has shown commitment to addressing the identified issues. Kenya has pledged to work with the FATF and its regional affiliate, the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), to enhance the effectiveness of its AML/CFT systems.
Since February 2024, Kenya has taken steps to strengthen its regime, including completing a terrorism financing risk assessment and aligning its targeted financial sanctions framework related to proliferation financing with global standards.
To fully comply, Kenya is expected to carry out its FATF action plan, which includes clearly presenting national money laundering and terrorism financing risk assessments, improving AML/CFT oversight of financial institutions and designated non-financial businesses and professions (DNFBPs), and implementing timely targeted financial sanctions.
Kenya has also committed to introducing legal frameworks for the regulation of virtual asset service providers and improving compliance and reporting mechanisms among financial and non-financial entities.
An amendment bill to Kenya’s Anti-Money Laundering and Countering Terrorism Financing Laws is currently before the National Assembly.
The EU Commission welcomed these commitments and urged all listed countries to promptly fulfill their action plans within the specified timelines.
