{"count":1608389,"next":"http://info.mzalendo.com/api/v0.1/hansard/entries/?format=json&page=153630","previous":"http://info.mzalendo.com/api/v0.1/hansard/entries/?format=json&page=153628","results":[{"id":1554482,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1554482/?format=json","text_counter":336,"type":"speech","speaker_name":"South Mugirango, UDA","speaker_title":"Hon. Silvanus Osoro","speaker":null,"content":" Yes, I am. Thank you very much. I beg to move that the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill (National Assembly Bill No. 5 of 2025) be now read a Second Time. I commend the Departmental Committee on Justice and Legal Affairs for its diligent work in reviewing and strengthening this vital legislation. The Bill is a comprehensive review of various laws to address technical compliance deficiencies identified by the Eastern and Southern Africa Anti-Money Laundering Group. It also reviews other remaining issues in the country's law regimes on anti-money laundering, combating of terrorism financing, and combating the financing of proliferation. The last of such reforms was undertaken in 2023 through the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Act of 2023. Such amendments are also being proposed two years down the line. In February 2024, Kenya was placed on the Financial Action Task Force's (FATF) grey list due to deficiencies in combating money laundering, terrorism financing, and proliferation financing. The FATF identified critical gaps in Kenya's regulatory framework, enforcing mechanisms, and inter-agency coordination. That necessitated urgent reforms to ensure compliance with international financial integrity standards that formed the basis of our being placed on the grey list. The FATF has provided Kenya with a compliance action plan that must be implemented to address the deficiencies and facilitate Kenya's removal from the grey list. The Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill of 2025 is a critical step in fulfilling the requirements, hence demonstrating Kenya's commitment to global financial integrity. We do not live in space but amongst others. We live in the world. We must demonstrate our financial integrity to other global players. This is the Bill that is going to get us out of such a grey list. The Bill seeks to close existing legal and institutional gaps and align Kenya's financial regulations with international best practices by amending several Acts. These include: 1. The Proceeds of Crime and Anti-Money Laundering Act (CAP 59A). 2. The Prevention of Terrorism Act (CAP 59B). 3. The Betting, Lotteries and Gaming Act (CAP 131). 4. The Retirement Benefits Act (CAP 196). 5. The Mining Act (CAP 306). 6. The Sacco Societies Act (CAP 490B). 7. The Accountants Act (CAP 531). 8. The Estate Agents Act (CAP 533). 9. The Certified Public Secretaries of Kenya Act (CAP 534). 10. The Public Benefits Organisations Act of 2013 (No. 18 of 2013). Kenya could face harsher economic consequences if we fail to act swiftly, including the withdrawal of correspondent banking relationships. That makes it difficult for businesses and individuals to transact internationally. We will face serious and harsher economic consequences if these laws are not reviewed to meet global financial integrity. As I have said, it will be very difficult for people to transact between this country and any other, especially international business people living in countries that do business. If you live in the United Arab Emirates (UAE), it will be very difficult for one to transact with this The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."},{"id":1554483,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1554483/?format=json","text_counter":337,"type":"speech","speaker_name":"South Mugirango, UDA","speaker_title":"Hon. Silvanus Osoro","speaker":null,"content":"country because Kenya is still on the grey list. Therefore, the Bill strengthens the regulatory framework, inter-agency collaboration, and compliance obligations. That ensures Kenya meets its international commitments and restores confidence in its financial system. Having given such a serious preamble, it is important to demystify certain items and make Members understand the content of the Bill. What exactly is the content of the Bill? Besides the title, you hear Members speaking many things about the Bill when you move around the corridors of Parliament, yet some will not have gone through it. Therefore, it is important for us to try simplifying the Bill to help Members understand it. With respect to the Proceeds of Crime and Anti-Money Laundering Act (CAP 58), the Bill proposes renaming the position of the Director of the Assets Recovery Agency to Agency Director-General. That ensures consistency with other investigative bodies in the country. You will realise that we have renamed most investigative agencies. When you talk about the Directorate of Criminal Investigations (DCI), we have the Director of DCI. On the Proceeds of Crime and Anti-Money Laundering Act, the Bill proposes renaming the position of the Director of the Assets Recovery Agency to Agency Director-General to equate or go in line with other investigative bodies in the country. Additionally, the Bill seeks to include dealers in precious metals as Anti-Money Laundering (AML) reporting institutions. It requires them to report any cash transactions of US$15,000 or more conducted with a customer. In particular, the AML reporting institutions require dealers to report any cash transactions with regard to precious metals. The proposed amendment introduces prescribed penalties for non-compliance with any regulations made under the Act to reinforce compliance. If this Bill is enacted, a natural person could face imprisonment for up to seven years, a fine not exceeding Ksh10 million, or even both. Non-compliance could attract a fine of up to Ksh20 million for corporate entities. The Bill also seeks to remove non-profit organisations from AML or Combating the Financing of Terrorism (CFT) reporting obligations to align with FATF standards. In line with this, it proposes to remove the Public Benefit Organisations Regulatory Authority (PBORA), formerly the NGOs Coordination Board (NGOCB), from their supervisory schedule. With respect to the Prevention of Terrorism Act (Cap 59B), the Bill seeks to introduce a clear definition of \"terrorism financing\". This is the bone of contention. It seeks to introduce a clear definition appertaining to what terrorism financing is, encompassing the collection or provision of property and service for the Commission of Terrorism Act as well as the financing of travel for terrorism purposes. This clarity will help law enforcement agencies to combat the threat of terrorism effectively. Without a clear definition of what exactly terrorism financing is, one would face a challenge when transacting, especially from investigative agencies. At face value, one may face the challenge of being accused of terrorism financing because of such uncertainty in the definition of this phrase. The definition encompasses the collection or provision of property and service for the commission of terrorism act. So, to deter such offences, the Bill proposes harsher penalties for financing travel for terrorism purposes. Very harsh! We all know what terrorism has done in this country. We have faced either directly or indirectly the challenges of terrorism. So, this Bill proposes harsher penalties for those who finance the travel for terrorism purposes. If enacted, a convicted natural person would face imprisonment of up to 20 years, while a legal entity could be fined up to Ksh20 million. So, if you are hiding behind a legal entity, say a company or an NGO, and you finance the terrorist travel, then you will face a fine of up to Ksh20 million because you are putting the lives of other Kenyans in danger. Additionally, Hon. Temporary Speaker, the Bill seeks to grant the Financial Reporting Centre, supervisory bodies, and self-regulatory organisations greater authority to supervise and enforce preventive measures against terrorism financing and the financing of proliferation activities. Even before we talk about what happens when a terrorism act is done, we must have The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."},{"id":1554484,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1554484/?format=json","text_counter":338,"type":"speech","speaker_name":"South Mugirango, UDA","speaker_title":"Hon. Silvanus Osoro","speaker":null,"content":"very serious preventive measures to deter it. We must learn as a country to protect before it happens. That is why this Bill seeks to grant the Financial Reporting Centre, supervisory bodies and regulatory organisations authority to supervise and enforce preventive measures against terrorism. These entities would also be empowered to oversee the implementation of targeted financial transactions by reporting institutions and further strengthening Kenya's Counter- Terrorism Financing Framework. With respect to the Betting Lotteries and Gaming Act (Cap 131), the Act is set to be amended to enhance the regulatory powers of the Betting Control and Licensing Board (BCLB). The amendments will empower the Board to regulate and supervise entities under the jurisdiction for compliance with anti-money laundering, counter-financing of terrorism and counter-proliferation financing measures. Betting, lotteries and gaming attract a lot of cash- flows within their systems and if not keenly checked, one who has an intent of financing an act of terrorism would hide in such companies or in organisations that do these lotteries in the pretence of saying it is for a winner but in real sense they are financing terrorists. The amendment will empower the Board to regulate and supervise entities within that jurisdiction so that one can trace the funds ―where they are coming from and where they are being taken ― so that people do not take advantage of the gap in the law as far as Betting, Lotteries and Gaming Act is concerned, to pass some huge amounts of money in the name of betting. Additionally, the amendments will, of course, introduce penalties for violations related to money laundering and terrorism financing, and a legal entity found in breach may face a fine of up to Ksh5 million, while a natural person may be fined up to Ksh1 million. Hon. Temporary Speaker, with respect to the Retirement Benefits Act (Cap 197), the Bill provides for the powers of the Retirement Benefits Authority for anti-money laundering and countering the financing of terrorism purposes of the Act. It seeks to provide for the regulations, supervision and compliance for anti-money laundering, combating the financing of terrorism and counter-proliferation financing by all reporting institutions supervised by the Authority. This simply empowers the Retirement Benefits Authority so that it can supervise, manage, and see what happens in any authority supervised by them and also see the movement. We are still talking about terrorism financing, and it is very important that this Act is reviewed so that it can fit within that line. To strengthen the role of the Authority, the Bill provides for vetting, which is very important, inspection, provision of necessary documents, sanctions, supervision of significant shareholders, proposed beneficial owners, directors and senior officers of reporting institutions in helping the Authority to achieve its mandate. It is vital that it must help the Authority to achieve its mandate by supervising all those steps so that we do not leave a single gap that can lead to a leakage in mass money movement without being revealed. The Bill provides for penalties for violations relating to money laundering and terrorism financing. A legal person who fails to comply is liable to a penalty not exceeding Ksh5 million, and if it is a natural person, a fine not exceeding Ksh1 million. Of course, the other one is a legal person. Further, there is an additional penalty not exceeding Ksh100,000 in each of the above-mentioned cases for each day of non-compliance. If that non- compliance continues, the fine that will be imposed will be almost Ksh100 000 each day that that person does not comply."},{"id":1554485,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1554485/?format=json","text_counter":339,"type":"scene","speaker_name":"","speaker_title":"","speaker":null,"content":"[The Temporary Speaker (Hon. (Dr) Rachael Nyamai) left the Chair]"},{"id":1554486,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1554486/?format=json","text_counter":340,"type":"scene","speaker_name":"","speaker_title":"","speaker":null,"content":"[The Temporary Speaker (Hon. Farah Maalim) took the Chair]"},{"id":1554487,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1554487/?format=json","text_counter":341,"type":"speech","speaker_name":"South Mugirango, UDA","speaker_title":"Hon. Silvanus Osoro","speaker":null,"content":"With respect to the Mining Act (Cap 306), Hon. Temporary Speaker, the Bill provides for a new definition by including the “terrorism financing” meaning assigned under the Prevention of Terrorism Act. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."},{"id":1554488,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1554488/?format=json","text_counter":342,"type":"speech","speaker_name":"South Mugirango, UDA","speaker_title":"Hon. Silvanus Osoro","speaker":null,"content":"Mining is another industry that has attracted many players and involves a lot of money. A lot of money is transacted within the mining industry. So, without including the definition of terrorism financing, this is another avenue where a person with terrorist intent will seek to use the mining to channel the money because of that gap. It is important that it is reviewed to include the definition in the Mining Act because there are people who will pretend they are doing mining activities using large transactions of money but end up sneaking some amounts of money for purposes of terrorism. So, the Bill seeks to provide for additional powers to the Director of Mines for anti-money laundering and countering the financing of terrorism purposes. The Director of Mines shall undertake the following mandates: Provide for the regulations, supervise, and be keen on compliance with anti-money laundering, combating the financing of terrorism and counter-proliferation financing by all reporting institutions in line with the Act. Ensure that there is vetting, inspection, provision of necessary documents, sanctions, and supervision of mineral rights holders and dealers of reporting institutions in helping the Authority achieve its mandate. There are many miners in the country, especially in our region. I must declare interest that I am a member of the industry. Many people in this area call themselves miners. They walk around saying they picked gold from Migori or some other place. However, in the real sense, that person is using that gap in law to convey money from illegal activities such as terrorism. The Bill seeks to introduce penalties for mineral rights holders, a dealer or their agents who violate or fail to comply with the regulations of anti-money laundering, combating the financing of terrorism or countering proliferation financing purposes. It provides that a legal person who fails to comply is liable to a penalty not exceeding Ksh5 million. You will realise that in this area, it is a legal person who will be a major player. Again, to seal every loophole, the penalty is a fine not exceeding Ksh1 million if it is a natural person. There is an additional penalty not exceeding Ksh100,000 in each of the aforementioned cases for each day that non- compliance continues. Next is the SACCO Societies Act (Cap. 490B). The Bill provides for a new definition in proper alphabetical sequence, stating that the term \"terrorism financing\" has the meaning assigned under the Prevention of Terrorism Act. We are adding a new section on the definition of the term \"terrorism financing\" in areas where large money transactions are involved. The Bill seeks to introduce additional powers of the SACCO Societies Regulatory Authority to counter anti-money laundering and the financing of terrorism. The Authority will regulate, supervise and enforce compliance of anti-money laundering, combating the financing of terrorism and countering proliferation financing purposes by all reporting institutions regulated and supervised by the Authority. That is very important for all SACCOs. Additionally, the Bill aims to strengthen the Authority by providing for vetting of proposed significant shareholders, proposed beneficial owners, directors and senior officers of a reporting institution, and helping the Authority achieve its mandate. The Bill seeks to amend the Act to introduce penalties for violations related to money laundering and terrorism financing. It also provides that a legal person who fails to comply is liable to a penalty not exceeding Ksh5 million. If it is a natural person, the penalty is a fine not exceeding Ksh1 million. There is an additional penalty not exceeding Ksh100,000 in each of the aforementioned cases for each day that non-compliance continues. I am left with about three Acts. In the Accountants Act, the Bill proposes changes to strengthen the role of the Institute of Certified Public Accountants of Kenya (ICPAK). I am interested to know why the Member for Molo stood up when I mentioned the word \"accountants\". I do not know whether he is the only accountant in the House. I have just mentioned accountants and terrorism. I do not know why he is moving around. I know he is not a terrorist, and he cannot finance terrorism, but I know he is an accountant. I do not know The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."},{"id":1554489,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1554489/?format=json","text_counter":343,"type":"speech","speaker_name":"South Mugirango, UDA","speaker_title":"Hon. Silvanus Osoro","speaker":null,"content":"what he is agitated about. He has just told me that he is excited about accounting. I am well guided. The Bill seeks to empower ICPAK to regulate, supervise and enforce compliance among the members for anti-money laundering, combating the financing of terrorism and countering proliferation financing purposes. To support that mandate, the Bill proposes granting ICPAK various supervisory and enforcement powers, including vetting members of reporting institutions, conducting off-site surveillance, undertaking consolidated supervision of a member of the Institute, and imposing monetary, civil, or administrative sanctions for violations related to anti-money laundering, combating the financing of terrorism or countering proliferation financing purposes. In addition, the Bill introduces penalties for non-compliance with all these regulations. If enacted, a legal entity could face a fine of up to Ksh5,000,000, while a natural person could be fined up to Ksh1,000,000. Further, continued violation may attract additional penalties of Ksh100,000 per day until compliance is achieved. This is as far as the accountant is concerned. In the second last one, the Bill with respect to the Estate Agents Registration Act, Cap 533, proposes to strengthen the regulatory law of the Estate Agents Registration Board in anti- money laundering, counter-financing of terrorism, and all those facts. It also seeks to grant the Board the authority to regulate and supervise entities within its jurisdiction to ensure compliance with these measures. To support this mandate, the Bill proposes to grant the Board various supervisory and enforcement powers, including vetting members for reporting institutions, conducting off-site surveillance, undertaking consolidated supervision, and imposing monetary, civil, and administrative sanctions for violations related to Money Laundering (MML), Combating the Financing of Terrorism (CFT), and Countering Proliferation Financing (CPF). The Bill proposes to strengthen the Institute of Certified Public Accountants of Kenya (ICPAK) by enhancing its role in anti-money laundering, counterfeiting terrorism, and all those other matters. It seeks to empower the Institution to regulate and supervise compliance with the measures among its members. To support this mandate, the Bill proposes to grant the Institute supervisory and enforcement powers, including vetting members of reporting institutions, conducting off-site surveillance, undertaking consolidated supervision, and imposing monetary civil, and administrative sanctions for violations relating to MML, CFT, and CPF. Additionally, this particular Bill introduces penalties for non-compliance, which Ksh5,000,000 and Ksh1,000,000 for a natural person could be fined up to Ksh1,000,000 and a further Ksh100,000 per day for continued violation and non-compliance. Finally, we look at the Public Benefits Act of 2013, No.8. The Bill proposes to empower the Public Benefits Organisation Regulatory Authority with enhanced oversight and monitoring responsibility of public benefit organisations at risk of terrorism financing. It grants the Authority the mandate to supervise, monitor, and regulate public benefit organisations (PBOs) identified as vulnerable to terrorism financing. It also enables the Authority to collaborate and share information with the Financial Reporting Centre (FRC) and other relevant law enforcement agencies to strengthen enforcement measures. Furthermore, the proposed amendment provides the Authority powers to issue regulations, guidelines, directives, and institutions to mitigate risks associated with terrorism financing. These provisions aim to enhance regulatory scrutiny, promote compliance, and safeguard the interest of PBOs operating in the country. Hon. Temporary Speaker, you will agree that the world is evolving fast. Nowadays, we have another challenge related to terrorism, which is cybercrime. The people engaging in terrorism financing only need a computer, be techno-savvy, have good internet, and they can hack accounts and do everything. This Bill ensures that we cover every loophole that could be The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."},{"id":1554490,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1554490/?format=json","text_counter":344,"type":"speech","speaker_name":"South Mugirango, UDA","speaker_title":"Hon. Silvanus Osoro","speaker":null,"content":"exploited. It seeks to amend numerous Acts to ensure that the clause on terrorism financing is well articulated in all the laws, especially those involving financial transactions. This is largely about terrorism financing. Activities such as lotteries, gaming, accounting, SACCOs, and mining present potential loopholes in the law that someone could use to sneak in funds for terrorist activities. In conclusion, I urge the Members to support this Bill, as it strengthens regulatory enforcement, enhances interagency collaboration, and reinforces compliance obligations. By passing this Bill, Kenya will align with international standards. We are currently operating in a grey area. Enacting this Bill will bolster the integrity of our financial system and restore confidence in our regulatory framework, placing us at the top within the global financial space. I, therefore, beg to move and ask the Chairperson of the Justice and Legal Affairs Committee (JLAC), Hon. Murugara mwenyewe – Sir George – to second."},{"id":1554491,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1554491/?format=json","text_counter":345,"type":"speech","speaker_name":"Tharaka, UDA","speaker_title":"Hon. George Murugara","speaker":null,"content":" Thank you very much, Hon. Temporary Speaker. I beg to second the Second Reading of the Bill, which has ably been moved by the Majority Whip of the Kenya Kwanza Coalition of Parties."}]}