Kenya Mandates Reporting of Large Cash Sales by Gold Dealers

Kenya proposes that gold and precious metals dealers report cash transactions over Sh1.9 million to combat money laundering, in an effort to exit the FATF grey list. This amendment seeks to align these dealers with existing financial institution regulations to enhance accountability and integrity within the financial sector.

Dealers in gold, silver, and diamonds will soon be mandated to report all cash transactions exceeding Sh1.9 million, as part of proposed legislative changes aimed at combating money laundering. This initiative is designed to assist Kenya in exiting the Financial Action Task Force (FATF) grey list, a status attained due to challenges in addressing financial crimes.

Following its placement on the grey list in February of the previous year, Kenya’s financial sector has faced heightened scrutiny, particularly regarding international transactions and anti-money laundering measures. The proposed amendment to the Proceeds of Crime and Anti-Money Laundering Act, introduced by National Assembly Majority Leader Kimani Ichung’wah, aims to align gold and precious stones dealers with the reporting obligations currently imposed on financial institutions.

These reporting requirements obligate dealers to flag substantial cash transactions for regulatory oversight, thereby contributing to efforts to mitigate illicit financial flows. By extending these obligations to precious metals dealers, Kenya seeks to bolster its financial integrity and enhance compliance with international standards for combating financial misconduct.

In conclusion, the proposed regulation requiring gold dealers to report cash sales exceeding Sh1.9 million represents a significant step toward strengthening Kenya’s financial oversight. By broadening the scope of accountability to include precious metals dealers, the country aims to regain its standing in the global financial community and address longstanding challenges related to money laundering and financial crime.

Original Source: ntvkenya.co.ke