Kenya Mandates Gold Dealers to Report Cash Sales Exceeding Sh1.9 Million

Kenya’s gold dealers will be required to report cash transactions over Sh1.9 million under new anti-money laundering regulations aimed at helping the country exit the FATF grey list. These changes, proposed by Majority Leader Kimani Ichung’wah, align precious metals dealers with banking regulations to prevent financial crimes.

Under proposed regulations, dealers in precious metals and stones in Kenya will be mandated to report all cash sales exceeding Sh1.9 million as part of anti-money laundering efforts. The aim is to assist Kenya in exiting the Financial Action Task Force (FATF) grey list, which it was placed on in February last year due to inadequate measures against money laundering, terrorist financing, and illicit arms trade.

These regulations will increase scrutiny within Kenya’s financial sector, particularly regarding international transactions associated with local banks. An amendment to the Proceeds of Crime and Anti-Money Laundering Act, presented by Majority Leader Kimani Ichung’wah, will align precious metals dealers with existing stringent reporting requirements applicable to banks and financial institutions, ensuring all large cash transactions are duly reported to combat illicit financial flows.

The proposed regulations signify a significant step by the Kenyan government toward enhancing its anti-money laundering framework. By requiring gold and precious metals dealers to report substantial cash transactions, the initiative aims to address previous shortcomings that led to the nation’s grey listing by the FATF. This alignment with existing banking regulations is a critical move in the broader context of financial integrity and compliance.

Original Source: ntvkenya.co.ke