RUTO signs new law targeting ‘wash wash’ after European Commission flagged Kenya as money-laundering hub



Tuesday, June 17, 2025 - President William Ruto has signed into law the Insurance Professionals Act and the Anti-Money Laundering and Countering the Financing of Terrorism (Amendment) Act, 2025, aimed at strengthening Kenya’s financial sector.

The new Insurance Professionals Act introduces strict professional qualifications, licensing requirements, and disciplinary frameworks for insurance practitioners.

It seeks to eliminate unqualified individuals, improve public confidence in the sector, and align Kenya with global best practices.

The law mandates registration with a regulatory authority, ongoing professional development, and compliance with an ethics code.

Offenders risk deregistration, hefty fines, or prosecution.

Alongside it, the amended Anti-Money Laundering law tightens legal frameworks to close gaps previously exploited by criminals.

The reforms include greater oversight of property transactions, transparency on beneficial ownership of shell companies, and expanded financial institution reporting duties.

Enforcement agencies have also been granted powers to freeze or seize suspicious assets swiftly.

“These reforms cement our position in the region as a leader in financial integrity and regulatory reform,” President Ruto said during the signing ceremony at State House.

The legislative changes come just days after the European Commission flagged Kenya as a high-risk jurisdiction for money laundering and terrorism financing.

In an update published on June 10th, the Commission placed Kenya on its list of countries with strategic deficiencies in their anti-money laundering regimes, alongside nations such as Lebanon, Côte d’Ivoire, and Venezuela.

The Kenyan DAILY POST

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