CBK directs banks to review their compliance to anti-money laundering laws

The Central Bank of Kenya has directed all commercial banks, microfinance institutions and mortgage finance companies to nominate “an independent and competent external third party” to evaluate the institution’s compliance to anti-money laundering and combating the financing of terrorism programs.

Financial institutions are expected to submit profiles of their independent nominees to CBK for approval.

The appointed third parties will evaluate the institution’s customer due diligence measures, its risk assessment for cases of money-laundering and terrorism financing, check the firm’s internal controls against such financial crimes, and their monitoring process.

Subsequently, the nominated entities are expected to present their independent findings to the Central Bank by 31^st May 2019.

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