ADVOKS GLOBAL · KENYA
Proceeds of Crime and Anti-Money Laundering Act
36D. Risk-based approach
Edition: 2025-11-04 · In force
36D. Risk-based approach
(1) The Centre, supervisory bodies and the self regulatory body shall, in fulfilling their obligations to effectively monitor reporting institutions, use a risk-based approach.(2)The Centre, supervisory bodies and the self regulatory body shall, in applying a risk-based approach to supervision, ensure that they—(a)have a clear understanding of the risks of money laundering, terrorist financing and proliferation financing at national, sectoral and institutional level;(b)have on-site and off-site access to all relevant information on the specific domestic and international risks associated with customers, products and services, delivery channels, geographical location and any other risk factors of the relevant reporting institutions they supervise; and(c)base the frequency and intensity of on-site and off-site supervision on—(i)the money laundering, terrorist financing and proliferation financing risks, and the policies internal controls and procedures associated with the business activities of a reporting institution, as identified by the Centre’s, supervisory body’s or self regulatory body’s assessment of its risk profile;(ii)the risks of money laundering, terrorist financing and proliferation financing in the country as identified within any information that is made available to the Centre, a supervisory body or the self regulatory body; and(iii)the characteristics of the reporting institution, in particular the diversity and number of such institutions and the degree of discretion allowed to a reporting institution under the risk-based approach.(3)The Centre, a supervisory body or the self regulatory body shall review the assessment of the money laundering, terrorist financing and proliferation financing risk profile of a reporting institution or group, including the risks of non-compliance periodically, and when there are major events or developments in the management and operations of the reporting institution or group.