ADVOKS GLOBAL · KENYA
Proceeds of Crime and Anti-Money Laundering Act
45A. Higher risk countries
Edition: 2025-11-04 · In force
45A. Higher risk countries
(1)A reporting institution shall apply enhanced customer due diligence on business relationships and transactions with any natural and legal persons, legal arrangements or virtual asset service providers or financial institutions originating from countries identified as posing a higher risk of money laundering, terrorism financing or proliferation by—(a)the Financial Action Task Force (FATF) as having strategic money laundering and combating financing of terrorism deficiencies, that have not made sufficient progress in addressing the said deficiencies or have not committed to an action plan to address the deficiencies; or(b)the Cabinet Secretary as having ongoing substantial money laundering and terrorism financing risks.(2)In addition to enhanced customer due diligence measures, a reporting institution shall apply appropriate countermeasures, proportionate to the risk presented by countries—(a)when called upon to do so by the Financial Action Taskforce;(b)independently of any call by the Financial Action Taskforce to do so; or(c)as advised by the Cabinet Secretary.(3)In order to protect the financial system from the ongoing and substantial money laundering or terrorism financing or proliferation financing risks emanating from the jurisdictions referred to under subsection (2), a reporting institution shall apply countermeasures including—(a)limiting or terminating business relationships or financial transactions with natural and legal persons, legal arrangements, or financial institutions located in the concerned countries;(b)prohibiting reliance on third parties located in the concerned countries to conduct customer due diligence;(c)applying enhanced due diligence measures on correspondent banking relationships with financial institutions or virtual asset service providers located in the concerned countries;(d)when considering the establishment of subsidiaries or branches or representative offices of financial institutions or virtual asset service providers from the concerned countries, take into account whether the financial institution is based in countries identified as having higher money laundering or terrorism financing risks or inadequate money laundering or terrorism financing systems;(e)submit a report listing customers, both natural and legal persons, and legal arrangements, originating from the higher risk countries to the Financial Reporting Centre on an annual basis; and(f)any other measures as may be specified by the Financial Reporting Centre.(4)The Centre shall disseminate to reporting institutions in such manner as it may determine—(a)any high-risk country identified pursuant to this section;(b)any countermeasures which are applicable to the country;(c)the concerns regarding the weaknesses in the anti-money laundering, countering of terrorism financing, countering of proliferation financing systems of that country; and(d)any publicly available information published by the Financial Action Task Force (FATF) on any jurisdiction which has been identified by it as having significant or strategic deficiencies in its anti-money laundering, countering of terrorism financing and countering of proliferation financing measures.