Home East Africa Ruto Signs into Law Anti-Money Laundering Bill 2025

Ruto Signs into Law Anti-Money Laundering Bill 2025

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Ruto Signs into Law Anti-Money Laundering Bill 2025

(3 Minutes Read)

The move by Europe to grey-list Kenya follows the Financial Action Task Force’s (FATF) greylisting in February 2024. Kenya is keen on pursuing reforms that cement our position in the region as a leader in financial integrity and regulatory reform, President William Ruto said after signing the bill into law on Tuesday.

President William Ruto has signed into law the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill 2025, days after the European Commission proposed to list Kenya among high-risk jurisdictions with deficiencies in anti-money laundering and countering the financing of terrorism (AML/CFT) regimes.

The new law marks a step towards strengthening Kenya’s financial system by bolstering transparency, tightening regulation, and aligning with global AML/CTF standards. Its success hinges on vigorous implementation, institutional backing, and supportive policymaking.

The move by Europe to grey-list Kenya follows the Financial Action Task Force’s (FATF) greylisting in February 2024. Kenya is keen on pursuing reforms that cement our position in the region as a leader in financial integrity and regulatory reform, President William Ruto said after signing the bill into law on Tuesday.

The signing of the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill 2025 reinforces this vision by sealing gaps that facilitate illicit financial flows via property transactions and the use of shell companies.

One of the technical deficiencies identified in Kenya’s Mutual Evaluation Report, published by the Eastern and Southern Africa Anti-Money Laundering Group in September 2024, was the lack of a Policy and Regulatory Framework for Virtual Assets and Virtual Assets Service Providers. In order to regulate this sector, the Government has developed the Virtual Assets Service Providers Bill, 2025, which is currently before Parliament.

The Bill aims to regulate crypto firms by requiring them to set up offices locally, seek licenses, and have their executives and boards vetted by regulators.

The Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK) will be the regulatory bodies tasked with the responsibility of providing licenses to crypto firms and supervise financial transactions.

The immense rise in popularity of cryptocurrencies like Bitcoin and Ethereum, which has even found favour with governments, has prompted the Kenyan government to join the fray and discard its long-standing scepticism.

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https://trendsnafrica.com/money-laundering-a-major-concern-in-africa-pan-africa-initiative-underscored/

The President has also signed the Insurance Professionals Bill (National Assembly Bills No. 13 of 2024) that will enhance the standards of service and promote professionalism in the industry.