Kenya_ new cma rules to counter money laundering, terrorism financing – the standard

Of most importance, the intermediaries will be required to access the risk levels of individuals approaching them, by checking their backgrounds and assigning them risk ratings.

According to the new CMA guidelines contained in a special gazette notice, individuals coming from countries that are rated high in corruption should be keenly scrutinised. Laundering money So are those coming from nations that are subject to embargoes, or sanctions, or are believed to have strong ties to terrorism.

The spotlight will also focus on Kenyans who have been exposed to political or economic scandals as they will now be considered as high risk investors.

Also targeted are devious characters who want to trade in securities by using secret numbered accounts; those involved in cash-intensive businesses as well as individuals who like to use complex corporate structures, trusts, and use of nominee accounts will be closely watched.

On the other hand, the market intermediaries have been guided to assign low risk ratings to customers who can prove that they are employed or have a regular source of income, or companies that have a good reputation, as well as a long history of clean ratings.

The new CMA guidelines were published in the latest edition of the Kenya gazette. Money laundering certificate The market intermediaries will keep a record of these individuals and their risk ratings for seven years and constantly update the Financial Reporting Centre (FRC) on them.

Also a person wishing to trade in securities will from now be required to fully give his identity through legal documents or be blocked from trading. Money laundering meaning in urdu Companies trading in securities have been barred from keeping anonymous accounts or hold accounts of fictitious names of clients.

CMA has also stopped clients from opening accounts with market intermediaries without presenting themselves in person, even if they do not reside in Kenya.

“Market intermediaries shall from now request for a face-to-face meeting by those opening accounts. Money laundering meaning A client must present a letter from his employers and membership to a professional body where applicable. Money laundering penalties uk Bank statements as well as a passport or national Identity card will be required,” the gazette notice read in part.

On a milder note, clients opening accounts with market intermediaries but cannot produce original legal documents are allowed to produce photocopies of these documents that are ascertained to be faultless. Laundering drug money Better still, the documents can pass a credibility test if they are certified by a magistrate or a commissioner of oaths.

In order to stop the dirty money from getting into the market, intermediaries have been asked to request for a letter from a client detailing clearly why they need to open multiple or nominee accounts that normally raise suspicion.

To this end, unusual transfers or payments of funds will require documentation to identify both the sender and recipient of the funds, and reasons underlying the transfer of such a large amount.

These measures and others not highlighted have been gazetted after the CMA identified the capital markets as lucrative platforms for terrorists and money launderers.

The market is seen as a platform to easily assist illegal profits to be channelled into legitimate economy through the purchase of investment instruments. Money laundering hmrc Capital markets have also been cited to offer a vast array of opportunities for transforming cash into a diverse range of assets.