New Law Targets NGOs, SACCOs, Betting Firms in Fight Against Money Laundering and Terrorism Financing
The National Assembly has officially passed the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2025 (National Assembly Bill No. 5 of 2025), as part of Kenya’s efforts to align with international standards on financial integrity and counter-terrorism financing.
Under this new law, several sectors including non-governmental organisations (NGOs), savings and credit cooperative societies (SACCOs), betting companies, and mining operations are now subject to tighter regulation and oversight.
These changes are intended to ensure all these entities operate transparently, detect and report suspicious transactions, and block potential funding channels for illegal or terrorist activities.
For NGOs, the law mandates compliance with the Public Benefits Regulatory Authority (PBRA), which has been given the responsibility to monitor their financial activities.
The PBRA will now track NGO funding sources and spending, especially for organisations that might be vulnerable to misuse for terrorism financing.
These organisations will also undergo routine assessments to prevent financial exploitation. NGOs that fail to meet these requirements risk facing penalties or sanctions.
Mining activities are now required to adhere to enhanced scrutiny, especially regarding the export of minerals and flow of funds.
Mining companies must keep proper financial records, identify any suspicious transactions, and confirm that all their financial dealings are clean and above board.
The aim is to eliminate avenues for illegal trade and money laundering through the mining sector.
The betting industry is also under the microscope. All betting platforms are now required to disclose transactions that might be connected to unlawful activities.
The Betting Control and Licensing Board (BCLB) has been tasked with overseeing these firms and ensuring they’re not being used to launder money.
Additionally, customers using betting services must go through stronger identity verification procedures to prevent fraud and stop the flow of illegal money through gambling channels.
SACCOs have also been brought into the anti-money laundering framework. They are now expected to observe stricter financial monitoring, and must report any suspicious financial activities.
These cooperatives will have to put systems in place to ensure that none of their transactions or operations are linked to criminal or terrorism-related funding.
Another major shift brought by the bill is the strengthening of the Retirement Benefits Act. The law now gives the Retirement Benefits Authority (RBA) increased powers to regulate, supervise, and ensure all entities under its jurisdiction comply with anti-money laundering, counter-terrorism financing, and measures against proliferation financing.
Moreover, accountants have been given an expanded role under the new legislation.
They now have more responsibility to oversee and ensure compliance with the law in areas related to money laundering and the financing of terrorism.
Their role in financial reporting and auditing is now tied more closely to helping detect and prevent illicit financial flows.
The passing of this law is a clear indication that Kenya is serious about cleaning up its financial systems.
It comes at a time when the country is pushing to meet the standards set by the Financial Action Task Force (FATF), a global body that monitors efforts to combat money laundering and terrorism financing.
Kenya is actively working to get off the FATF grey list, and this new legislation is seen as a critical step in demonstrating the country’s commitment to international financial regulations and transparency.
This move is part of broader efforts that also include diplomatic initiatives and engagements with international partners aimed at restoring Kenya’s financial reputation and boosting investor confidence in the country’s systems.
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