The Efficacy of anti-money laundering regulations among banking institutions in Kenya

Abstract

This research study assesses adherence and effectiveness of the anti-money laundering regulations among financial institutions in Kenya specifically Banks. It aims to provide a macro analysis of Kenya's anti-money laundering (AML) legislation. In examining the context and consequences of these regulations and seeks to analyze the effectiveness of current Kenya legislation. The major AML regulations in Kenya are covered under The Proceeds of Crime and Anti-Money Laundering Act (POCAMLA). This research will then attempt to determine the effectiveness of current POCAMLA, particularly on the financial Institutions, by looking at cases of alleged failure to maintain effective AML Compliance Programs by the Act. Analysis of Kenya's AML legislation is severely needed. The result of this study will indicate that there are indeed loopholes in AML regulations in Kenya and there is a need to adapt to new anti-money laundering regulations to curb money laundering and recommend the way forward on the laws and regulations that Kenyan Banks can adopt.