Thirty-five savings and credit cooperatives (SACCOs) are staring at possible sanctions after failing to register with the Financial Reporting Centre (FRC) as required under new anti-money laundering regulations.
This was revealed by SASRA adding that the stated saccos had not fully registered as reporting institutions mainly on the grounds that they had submitted incomplete applications, or some documents were not availed to enable the completion of the registration process.
“A total of 320 Regulated SACCOs had fully been registered with FRC as reporting institutions in 2024, which is an increase from just 212 Regulated SACCOs which had registered in 2023. Thus, there were 35 Regulated SACCOs which had not fully registered as reporting institutions mainly on the grounds that they had submitted incomplete applications, or some documents were not availed to enable the completion of the registration process.”
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Beyond enforcing registration, SASRA has also rolled out new Guidelines for Regulated SACCOs on Combating Money Laundering, Terrorism Financing and Countering Proliferation Financing. Issued on June 24, 2024, the guidelines set out how SACCOs should comply with anti-money laundering and counter-terrorism financing obligations.
They outline the legal framework, require SACCOs to identify and mitigate financial crime risks, and establish clear procedures for detection, deterrence and reporting of suspicious activities.
The crackdown comes against the backdrop of Kenya’s wider efforts to strengthen its financial integrity regime. In 2023, the Financial Action Task Force (FATF) placed Kenya on its “grey list,” citing deficiencies in the country’s anti-money laundering and counter-terrorism financing framework.
By Juma Ndigo
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