ADVOKS GLOBAL · KENYA
Proceeds of Crime and Anti-Money Laundering Act
44. Monitoring and Report by institutions
Edition: 2025-11-04 · In force
44. Monitoring and Report by institutions
(1)A reporting institution shall monitor on an ongoing basis all complex, unusual, suspicious, large or such other transactions as may be specified in the regulations, whether completed or not, and shall pay attention to all unusual patterns of transactions, and to insignificant but periodic patterns of transactions which have no apparent economic or lawful purpose as stipulated in the regulations.(2)Upon suspicion that any of the transactions or activities described in subsection (1) or any other transaction or activity could constitute or be related to money laundering, terrorism financing, proliferation financing or to the proceeds of crime, a reporting institution shall report the suspicious or unusual transaction or activity to the Centre in the specified manner within two days after the suspicion arose.(3)Notwithstanding subsections (1) and (2), a reporting institution shall report all suspicious transactions, including attempted transactions to the Centre.Provided that lawyers, notaries and other independent legal professionals may submit reports under this subsection through the Law Society of Kenya which shall establish reporting channels to the Centre.(3A)Lawyers, notaries and other independent legal professionals are not required to report suspicious transactions if the relevant information was obtained in circumstances where they are subject to professional secrecy or legal professional privilege.(3B)The information referred to in subsection (3A) refers to information received from or obtained by the lawyer, notary or other independent legal professional from a client—(a)in the course of ascertaining the legal position of their client; or(b)in performing their task of defending or representing that client in, or concerning judicial, administrative, arbitration or mediation proceedings.(3C)The Law Society of Kenya and the Centre shall establish appropriate mechanisms to cooperate for exchange of information relating to suspicious transaction reporting and supervision.(4)A reporting institution shall as far as possible examine the background and purpose of the transactions referred in subsections (1) and (2) and shall set out its findings in writing.(5)A reporting institution shall retain its findings under subsection (4) for at least seven years from the date of the making thereof, and shall make them available to the Centre, and to its supervisory body or auditors.(6)Despite the provisions of this section, a reporting institution shall file reports on all cash transactions equivalent to or exceeding the amount prescribed in the Fourth Schedule, whether they appear to be suspicious or not.(7)A report under subsections (2) and (3) shall be accompanied by copies of all documentation directly relevant to the suspicion and the grounds on which it is based.(8)The Centre may, in writing, require the person making the report under subsection (2) or (3) to provide the Centre with—(a)particulars or further particulars of any matter concerning the suspicion to which the report relates and the grounds upon which it is based; and(b)copies of all available documents concerning such particulars or further particulars.(9)When a person receives a request under subsection (8), that person shall furnish the Centre with the required particulars or further particulars and copies of documents to the extent that such particulars or documents are available to that person within a reasonable time, but in any case not later than thirty days from the date of the receipt of the request:Provided that the Centre may, upon written application by the person responding to a request and with the approval of the Director-General, grant the person an extension of the time within which to respond.(10)A person who is a party to, or is acting on behalf of, a person who is engaged in a transaction in respect of which he forms a suspicion which, in his opinion, should be reported under subsections (2) or (3), may continue with and complete that transaction and shall ensure that all records relating to that transaction are kept, and that all reasonable steps are taken to discharge the obligation under this section.(11)For purposes of this section, the Centre shall specify the manner in which suspicious transaction, activity reports and cash transaction reports shall be filed.