International money remittance providers will soon come under closer watch of the Central Bank as it intensifies anti-money laundering efforts.
The regulator has drafted new rules -Money Remittance Regulations, 2012- aimed at ensuring remittance providers observe anti-money laundering regulations and help in combating the financing of terrorism activities
Under the new regulations, the institutions will have to monitor and report suspicious activities to the Financial Reporting Center, like customers who do repeat transactions in a day amounting to US$10,000 ( aprox. Sh850,000) to avoid such amounts being reported.
The remittance companies will also be required to have a customer identification program and conduct customer due diligence before carrying out any transaction.
“The purpose of the regulation is to require money remittance providers to observe anti-money laundering and combating of the financing of terrorism measures,” said CBK in the policy statement for the regulations posted on its website.
Detailed news link : click here
Link to draft regulation (CBK press release): click here