ADVOKS GLOBAL · KENYA
The Capital Markets (Licensing Requirements) (General) Regulations
80. Prevention of money laundering and other illicit activities
Edition: 2023-10-06 · In force
80. Prevention of money laundering and other illicit activities
(1)Every licensed person shall obtain through a client information questionnaire details from a client or a potential client with respect to the following—(a)the identity of the client or a potential client supported by documentary evidence;(b)nature of business activities of the client or potential client;(c)origin and sources of funds used or to be used for investment in securities. Where the money or funds originate from outside Kenya a confirmation from the remitting entity of the nature of its business and of the source of the moneys or funds;(d)a written declaration by the client or potential client confirming—(i)the accuracy of all information given under paragraphs (a) to (c); and(ii)that the moneys or funds used for the investment in securities is not arising out of the proceeds of any money laundering or other illicit activities;(e)a licensed person shall maintain at least the following information in respect of their clients and shall ensure that they link each transaction to the beneficial owner—(i)where the client is a natural person, any person on whose behalf the client is acting, whether as nominee, trustee or any other capacity;(ii)where the client is a limited partnership, the name of the general partner (and where the general partner is a body corporate, the information as prescribed under item (iv) shall be maintained);(iii)where the client is an unlimited partnership, the names of the other partners;(iv)where the client is a body corporate, the name of all individuals who have a direct or indirect interest amounting to thirty per cent or more of the equity;(v)where the client is a trust, the name of the settlers, trustees, protectors and principal named beneficiaries;(vi)where the client is a legal arrangement other than a trust, the name of the owner or controller;(f)where the customer is a financial institution, such as a bank, insurance company, pension fund or collective investment fund and is conducting business collectively on behalf of a large number of underlying customers, and where the institution is subject to rules or regulations that require the financial institution to conduct customer due diligence, the licensee is permitted to rely on the financial institution to hold beneficial ownership information and need not hold that information itself.(2)The client information under paragraph (1) shall be obtained by the licensed person every time a client places an investment order with the licensed person.(3)The client information obtained under paragraph (1) and (2) shall be maintained by the licensed person as part of the records required under regulations 19, 31, 43 and 49.(3A)The licensed person shall make such information available to the Authority on request and also to the central depository for the purpose of answering an enquiry made of it under Section 58 of the Central Depositories Act (Cap. 485C).