NAIROBI, Kenya, Feb 10 – The Insurance Regulatory Authority (IRA) has trained life insurers on Anti-Money Laundering (AML) to tame the illicit flow of money and terrorist financing.
In a training workshop in Nairobi, participants were also informed about Combating the Financing of Terrorism (CFT) and Countering Proliferation Financing (CPF) regulations.
The over 100 representatives from key insurance businesses were equipped with the necessary knowledge and tools to enhance customer verification processes and risk assessments, reinforcing Kenya’s financial system’s security and transparency.
Under the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA), life insurers and investment-related insurance providers are classified as ‘reporting institutions.’
Kalai Musee, the Director of Supervision at IRA, who represented the Commissioner of Insurance and IRA CEO, Godfrey Kiptum, emphasized the critical role of Know Your Customer (KYC) procedures in safeguarding financial systems from illicit activities.
“Robust KYC processes are essential in detecting, preventing, and reporting suspicious transactions. This workshop has provided life insurers with the necessary guidance to uphold financial integrity and regulatory compliance,” he said.
He also highlighted the broader impact of financial crimes on economic stability, noting that money laundering, terrorist financing, and proliferation financing erode customer confidence and weaken the financial sector’s role in economic growth.
Currently, IRA is in the process of issuing Guidance Notes to help the insurance industry stakeholders in the refinement of their AML/CFT programs.
The workshop follows the resolutions made during the 15th Joint Financial Sector Regulators Forum in Mombasa County in November 2024, where the leadership of the financial sector regulators resolved to enhance integrity in the financial sector by continually improving the supervisory framework on AML/CFT within their specific industries.
The Joint Financial Sector Regulators Forum draws membership from the Central Bank of Kenya (CBK), Insurance Regulatory Authority (IRA), Retirement Benefits Authority (RBA), Capital Markets Authority (CMA), and Saccos Societies Regulatory Authority (SASRA).
