The Anti-Money Laundering And Combating Of Terrorism Financing laws (Amendment) Bill, 2023

SPECIALISSUE

Kenya Gozente Supplement No.Ill (National Assembly Bills No.35)

REPUBLICOFKENYA

KENYAGAZETTESUPPLEMENT

NATIONALASSEMBLYBILLS,2023

NAIROBI,11th July,2023

CONTENT

Bill for Introduction into the National Assembly-

The Anti-Money Laundering and Combating of Terrorism Financing Laws(Amendment) Bill.2023

PAGE

1065

ABill for

anti-money laundering and combating of terrorism financing and proliferation financing: and for connected purposes

AN ACTofParliament to amend the laws relating to

ENACTEDbyParliament ofKenya,asfollows-

• 2.The laws specified in the first column of the
• 1.This Act may be cited as the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment)Act,2023.
• Schedule are amended in the provisions specified in the second column thereof,in themanner respectively specified in the third column.

Written lawProvision

SCHEDULE

Amendment

Short tile

Ameadmenof

wrilenlaws.

(s.2)

Insert the followingnew definition in proper alphabetical sequence-

New

"Central Authority"has the meaning assigned to it under section 2of the Mutual Legal Assistance Act,2012.

Sinplified extradition.

Insert the following immediately after section 10 new section

10A.(1)A fugitivecriminal being sought by a requesting state may consent to be extradited to that requesting State without conducting

formal extradition proceedings.

• (2)Where a fugitive criminal consents to be extradited under subsection (l),that person shall be advised of his or her rights and the legal consequences of the simplified extradition procedureand expressly may renouncehis entitlement to the rule of speciality. orher

Extradition s.2 (Contiguous and Foreign Countries)) Act (Cap.76)

Schedule

Extraditions.2 (Commonwea lth Countries) Act (Cap.77)

New

• (3)The consent and,where appropriate.the renunciation of the entitlement to the rule of speciality shall be recorded by a magistrate and maynot berevoked.
• (4)Acopy of the consent referred to under subsection(3)shall betransmitted totheCentral Authority with a view to arranging his or her surrender to the requesting
• state.

Delete thewords constitutesa terrorist act under thePrevention of Terrorism Act,2012"appearingafter the heading"Terrorist Offences"andsubstitute therefor the words"Any offence that constitutes a terrorist act or any offence under sections 4A 4B,5.8.9.9A,and 14Aunder thePreventionof TerrorismAct,2012.

Insert the following new definition in proper alphabetical sequence

"Central Authority"has the meaning assigned toit under section 2of the Mutual Legal Assistance Act,2012.

Insert the following new immediately after section 13-

Simplified extradition.

section

13A.(1) Afugitive criminal being sought by a requesting state may consent to be extradited to that requesting State without conducting formal extradition proceedings.

• (2)Where a fugitive criminal consents to be extradited under subsection (l).that person shall be advised of his or her rights and the legal consequences of the simplified

Schedule

State s.2(b) Corporations Act (Cap.446)

Capital New Markets Act (Cap.485A)

• extraditionprocedure and may expressly renounce his orher entitlement to the rule of speciality.
• (3)The consent and,where appropriate,the renunciation of the entitlement to therule ofspeciality shallbe recordedby amagistrate and may notberevoked.
• (4)A copyof the consent referred to under subsection(3)shall betransmitted totheCentral Authority with a view to arranging his or her surrender to the requesting state.

Add the following new paragraph immediately afterparagraph34--

• 35.Any offence that constitutesa terrorist aclor anyoffenceundersections4A,4B 5.8,9.9A,14Aunder thePreventionof Terrorism Act,2012.

Add thefollowingnewsub-paragraph immediately after sub-paragraph(vii)-

(viii) the Financial Reporting Centre established under the Proceeds of Crime and Anti-Money Laundering

Act,2009.

Insert the following new section immediately after section 12-

Powerson anti-money Inundering, combating the financing of terrorism and countering proliferation financing matters.

12A.(l)Pursuant to sections 2A,36A,36Band 36Cofthe Proceedsof Crime and AntiMoney Laundering Act,2009,the Authority shall regulate,supervise and enforce compliance for antimoney laundering,combating the financing of terrorism and countering proliferation financing purposes by all reporting institutions regulated and supervisedby the Authorityand whomtheprovision ofthe Proceeds of crime apply.

• (2)Inundertakingitsmandate under subsection (l),the Authority
• may-
• (a)vet proposed significant shareholders, proposed beneficial owners,proposed directors and senior officers ofareporting institution;
• (b)conduct onsite inspection;
• (c)conduct offsite surveillance;
• (d)undertake consolidated supervision of a reporting institution and its group:
• (e)compel the production of any document or information the Authority may require for the purpose of discharging its supervisory mandateunder the Proceeds of Crime and Anti-Money Laundering Act. 2009:
• impose monetary.civil or administrativesanctionsfor violations relatedto antimoney laundering, combating the financing of terrorismand countering proliferation financing purposes;
• (g) issue regulations,guidelines.
• directions, rules or

Insurance Act s.2 (Cap.487)

Part III

• instructions for anti-money laundering.combatingthe financing of terrorism and countering proliferation financing purposes;
• (h)cooperate and share information for anti-money laundering.combating the financing of terrorism and countering proliferation financing purposes;and
• (i)take such action as is
• necessary to supervise and enforce compliance by reporting institutions in line with the provisions of the Proceeds of Crime and AntiMoney Laundering Act and any regulations,guidelines rules,instruction or direction made orissued thereunder.
• (3)For purposes of this section, "reporting institutionhas the meaning assigned to it under section 2 of the Proceedsof Crime and Anti-Money Laundering Act,
• 2009.

Delete the definition of "registration"

Insert the followingnew definition in proper alphabetical sequence-

"licensing"means authorization under this Act to transact insurance business and includesrenewal oflicenses;

Deletethe word "registration"inthe heading appearing immediately after section 18

and substitute therefor the word "licensing"

s.19

s.22

Delete the word "authorized"appearing in the marginal note and substitute therefor the

word"licensed".

s.19(1) Delete the word"registered"and substitute

therefor the word"licensed"

Delete the word "registered"appearing in the marginal note and substitute therefor the

s.20 word"licensed".

s.20(1)

Delete the word"registered"and substitute therefor the word "licensed"

s.20(2) Delete the word "registered"wherever it appears and substitute therefor the word

"licensed".

• the word "registration" appearing in the marginal note and substitute therefor. the word
• (a)Delete "licensing".
• (b)Delete the word "registered"wherever itappears and substitute therefor the word"licensed".

Delete the word "registered"and substitute

s.23(1) therefor the word "licensed"

s.23(5) Delete the word "registered"and substitute

therefor the word "licensed"

s.23(6) Delete the word"registration"and substitute

therefor the word"license".

s.25(1) Delete the word "registered"and substitute

therefor the word"licensed".

Delete the word "registered"and substitute therefor the word"licensed"

s.25(3)

s.26(1) Delete the word "registered"and substitute therefor the word "licensed"

s.26(2)

Delete the word "registered"and substitute therefor the word"licensed"

s.27 Delete- s.30

• (a)theword"registered" "licensed":and
• whereverit appears and substitute therefor the word
• (b)the word "registration"and substitute therefor the word"license"

S.27A Delete the word "registered"wherever it appears and substitute therefor the word

"licensed".

• (a)Delete the word"registration"appearing inthe marginal noteand substitute therefor the word "license".
• (b)Delete the word "registration"wherever itappears and substitute therefor the word"license".

s.30A(1) Delete the word "registered"wherever it appearsandsubstitutetherefor the word

"licensed".

8.31 Delete the word "registration"appearing in the marginalnote and substitute therefor the

word"licensing"

s.32(1) Delete the word"registration"and substitute therefor the word "license".

s.32(2) Delete the word "registered"wherever it

appears and substitute therefor the word "licensed".

8.33 Delete the word "unregistered"appearing in the marginal note and substitute therefor the word"unlicensed".

s.33(1) Delete the word"registration"and substitute therefor the word"a license"

8.34 Delete the word"registrationand substitute therefor the word"a license"

S.67A(1) Delete the word"registered"and substitute

• therefor the word"licensed"

S.67A (2) Delete the word"registered"and substitute

S.67A(4)

therefor the word"licensed"

Delete the word"registered""wherever it appears andsubstitute thereforthe word "licensed",

Delete the word "registered"and substitute

S.67B therefor the word "licensed"

s.67C(1)(d) Deletetheword"registered"whereverit appears andsubstitutetherefor the word

"licensed".

s.67D Delete the marginal note and substitute therefor the followingnew marginal note-

"Part to apply to unlicensed persons."

S.67D(1)

Delete the words "without registration. renewalofregistration orauthorisation"and substitute therefor the words"without a license or renewalof a license"

s.67D(2)(a) Delete and substitute therefor the following

new subsection-

(a)transacting insurance business without a license or renewal of license,under this Act or with personsnot so licensed;

s.68(1) Delete the word "registered"wherever it appears and substitute therefor theword "licensed"

s.68(2) Delete the word "registered"wherever it appears and substitute therefor the word "licensed".

Delete the word "registered"wherever it appears and substitute therefor the word

s.68(3) "licensed".

s.68(4) Delete the word"registered"wherever it appears and substitute therefor theword

"licensed"

s.68(5) Deletethe word "registered"wherever it appears and substitute therefor the word "licensed".

s.68(6) Delete the word "registered"and substitute therefor the word "licensed"

Deletetheword"registered"wherever it appears andsubstitute thereforthe word

s.69(4)(a) "licensed".

8.69(4)(b) Deletethe word "registered"wherever it appears and substitute therefor the word "licensed"

s.113(1)(a)

Delete the word "registered"and substitute therefor the word "licensed".

s.113(1(b) Delete the word "registered"and substitute therefor the word "licensed"

8.128

Addthefollowing new subsection immediately after subsection (5)-

(6)The liquidatorshall maintain information and records on the beneficial ownership of the insurer for atleast five years after the date on which the company is dissolved.

s.150 Delete the word "registered"appearing in the marginalnote andsubstitutetherefor the word"licensed".

s.150(1)

Delete the word "registered"and substitute therefor the word"licensed

s.150(2) Delete the word"registered"wherever it appearsand substitute thereforthe word "licensed".

S.150A Delete the word"registration"appearing in the marginal note and substitute therefor the

word"licensing"

Delete the word "registration"appearing in the marginal note and substitute therefor the

s.151 word "licensing".

• Delete the word "registration"wherever it
• s.151(1) license".

S.151(1A)

Delete the word "registered"and substitute therefor the word"licensed"

s.152

In the opening statement-

• (a)delete the word"register"and substitute
• therefor the word"license":and
• and
• (b)delete the wordregistration" substitute therefor the word"license""

s.152(d) Delete the word"registered"and substitute

therefor the word"licensed".

s.153 Delete the marginal note and substitute therefor thefollowingnew marginal note-

"Licensing and re-licensing"

Delete the word"registered"and substitute

s.153(1)(i) therefor the word"licensed"

Delete the word "registered"appearing after the words "abroker shallbe"and substitute

s.153(2) therefor the word"licensed".

s.153(3) Delete-

• (a)theword"registered"wherever it appearsand substitute therefor the word "licensed";and
• (b)the words "registration or renewal or registration"and substitute therefor the words"licensingorrenewalofa
• license".

Delete the word"registered"and substitute

s.155(3)(a) therefor the word "licensed"

Delete the word"registered"and substitute

s.155(3)(b) therefor the word"licensed"

Delete and substitute therefor the following

PartXX newPart- s.182

s.183

PARTXX-GENERALPROVISIONS RELATING TOLICENSINGAND LICENCES

Delete-

• (a)the the word "registration"wherever it appears in the definition of "applicant" andsubstitutethereforthewords"a
• license':and
• (b)the definition of"registered person"and substitute therefor the following new definition in alphabeticalorder-

"licensedperson" means aperson licensed under this Act as an insurer. reinsurer, broker,agent, insurance surveyor,risk manager,loss assessor, loss adjuster or claims settling agent;

Delete the word "authorised"appearing in the marginalnoteand substitute therefor the word"licensed".

s.184 Delete-

• (a)the word "registered"appearing in the marginal note and substitute therefor the
• word"licensed":and
• (b)theword
• "registered"whereverit appears and substitute therefor the word "licensed"

s.187 Delete-

• (a) the word"registration"appearing in the marginal note and substitute therefor the
• word"license";and
• (b)the word"registered"appearing in the opening statement and substitute therefor the word"licensed"

Delete the word "registered"and substitute

s.187(a) therefor the word"licensed"

s.187(b)

Delete and substitute therefor the following

newparagraph-

• (b)being an insurer,gives notice in writing to the Commissioner that he wishes to carry on insurance business of a class not previously undertaken, the Commissioner may.subject in the case ofadditional license to compliance with the provisions relating thereto and to such terms and conditions ashe
• considers necessary-
• cancel the licence,except that,in the case ofan insurer,such cancellation shall be made only with the prior approval in writing ofthe Cabinet Secretary:
• alter the relevant register,
• alter the licence:or
• (iv)issue a new licence,

as the circumstances require.

Delete the word "registration"appearing in themarginal note and substitute therefor the

s.188 word"license"

s.188(1) Delete and substitute therefor the following new subsection-

• (1) Subject to this Act,a license issued under this Act shall expire on the 31"of Decemberof theyearoflicensing:

Provided that where an application for its renewal is made under this section,the license shall be deemed to continue in force until the application for the renewal is determined.

Delete the word"registration"and substitute

s.188(2) therefor the words"a license".

Delete and substitute therefor the following

s.188(3) subsection-

(3)The Commission may extend the time for making an application for renewal ofa license on payment of such a penalty. not exceeding theprescribed feefor licensing,as he may require.

s.188(4) Delete the word"registered"and substitute

therefor the word "licensed"

s.189 Delete the word"certificates"appearing in the marginal note and substitute therefor the word"licences".

Delete and substitute therefor the following

s.189(1) subsection-

• (1)Upon issuance of a licence or its renewal,the Commissioner shall issue a licence whichshall beprominently displayed by the licensed person at his principal place of business in Kenya ina part thereof to which the public have access, and a copy thereof shall be similarly displayed at each of the branches of the
• licensed person inKenya.
• s.189(2) appears andsubstitutetherefor the word

Delete the word "certificate"wherever it "license".

• 8.189(3) Delete and substitute therefor the following new subsection-
• (3)Upon the cancellation of a license the licensedperson shall forthwith return his license to the Commissioner.

s.189(4) Delete and substitute therefor the following new subsection-

• (4)A licensed person shall not displaya licence after the cancellation or expiry of the licence.

s.190

s.190(1)

Delete the word "registered"appearing in the marginal note and substitute therefor the word"licensed"

Delete and substitute therefor the following newsubsection-

• (1)If the name of a licensed person is identicaltoaname by which another licensedperson has already been licensed,or sonearlyresembles itas to be likely to deceive,the second licensed person shall,if directedinwritingtodosobythe Commissioner and subject to the Companies Act,2015,change his name within a time to be specified in the direction.

s.191(1) Delete-

• (a)the word"registered"and substitute therefor the word "licensed":and
• (b)the word "registration"and substitute
• therefor the word"licensing".
• s.191(2) appearsandsubstitute therefortheword
• Delete the word "registered"wherever it "licensed"
• s.191(3) Delete theword "registered"wherever it appears and substitute therefor the word "licensed".
• s.192 Delete the words"registration or renewal of registration"wherever it appears and substitute therefor the words"license or renewal of a licence".

s.193(1) Delete-

• (a) the word "registration"and substitute therefor the word"licensing":and
• (b) the word "registered"and substitute
• therefor the word"licensed"
• Delete and substitute therefor the following

s.194 newsection- s.195

s.196

Falseor misleading.

• 194.Aperson who makes a false or misleading statement in an application for a licence orrenewal oflicense or alteration of licence, orin any document fumished under this Act to the Commissioner with or in support oforinconnection withan application for a licence or renewal ofa licence,commits an offence and isliabletoa fine not exceeding five thousand shillings.

stalements

Delete and substitute therefor the following newsection-

Refusal to license.

195.Where the Board refuses tolicenseanapplication or renewaloralterationofa license,the Board shall record the reasons for its decision and shall furmish copies thereof to the applicant and the Minister.

Delete the word "registration"appearing in the marginal note and substitute therefor the words"a license".

s.196(1) Delete and substitute therefor the following newsubsection-

• (1)Where a licensed person requests,by notice in writing given to the Commissioner, that hislicense be cancelled either totally or inrespect of any particular part of his business,the Commissioner may.subject to such terms and conditions as he considers necessary,by notice in writing.cancel the license of the person,either totally or in respect of any particular part of his business.

• (a)the word "registered"and substitute
• therefor the word"licensed":and
• (b)the word"registration"and substitute therefor the words"a licence"
• s.196(2)(c)
• Delete the word"registered"and substitute therefor the word "licenced".
• Delete the word "registered"wherever it appearsandsubstitute therefortheword
• s.196(2)(d) "licenced".
• s.196(2)(e) Delete the word "registered"wherever it appears and substitute therefor the word
• "licenced".
• Delete the word"registered"and substitute
• 8.196(2)(g) therefor the word "licenced".
• s.196(2)() Delete the word"registered"wherever it
• appears and substitutethereforthe word "licenced".
• s.196(3) Delete and substitute therefor the following new subsection-
• (3)A cancellation ofa license made by the Commissioner under subsection (2). other than paragraph (f).(g)or (i) thereof shall take effect thirty days after the date of the notice,and after that time no insurer whose license has been cancelled shall enter into a new contract ofinsurance;but all rights and liabilities in respect of contracts of insurance entered into by him before the cancellation takes effect shall,subject to subsection(5).continueas ifthe

s.196(4) Delete-

• cancellation had not taken place.
• (a)the word "registration"wherever it appears and substitute therefor the words "licence";and

• (b)theword"registered"whereverit appears and substitute therefor the word
• "licensed.
• s.196(5) Delete the word"registration"and substitute therefor the words"the licence".
• s.196(5A)(a) Delete the word"registration"and substitute therefor the word "licence".
• s.196(6) Delete and substitute therefor the following new subsection-
• (6)Where in any case referred toin subsection (l) the default or circumstances relates to one or more,butnot all,of the parts of business carried on by the licensed person,the Commissioner may.with the prior approval of the Cabinet Secretary. upon the cancellation of the license of the person,subject to such terms and conditions as he considers necessary,license the person in respect ofany part of the business and issue a newlicense in respect of that class of business.

s.196A

• (1)Delete-
• (a) the word "registration"appearing in the marginal note,and substitute therefor the
• word"licence":and
• (b)the word"registration"wherever it appears and substitute therefor the word "licence".
• (2)Renumber the existing provision as subsection (l)and insert the following new subsection immediately after section(l)
• (2)The Authority shall maintain information and records on the beneficial ownership of the persons whose license is cancelled for at least five years after the date on which the license is cancelled.

New Insert the following new section immediately after section 196A- Powers on untimoney laundering. comhating the financing.of tenorismand countering proliferation financing matters.

• 196B.Pursuant to sections 2A, 36A,36Band36CoftheProceeds of Crime and Anti-Money LaunderingAct,2009,the Authority shall regulate,supervise and enforce compliance for anti-money laundering.combating the financing of terrorism and countering proliferation financing purposes by allreporting institutions regulated and supervised by theAuthorityand towhomtheprovisionsofthe Proceeds of Crime and Anti-Money LaunderingAct,2009 apply
• (2)In undertaking its mandate under subsection (l),the Authority may-
• (a)vet proposed significant shareholders, proposed beneficial owners,proposed directors and senior officers of areporting institution:
• (b) conduct onsite inspection:
• (c)conduct offsite surveillance;
• (d)undertake consolidated supervision of areporting institution and its group;
• (e)compel the production of any document or information the Authority may require for the purpose ofdischargingits supervisory mandate under the Proceeds of Crime and AntiMoneyLaunderingAct,2009;

• (f)impose monetary.civil or administrative sanctions for violationsrelatedtoantimoney laundering.combating the financing of terrorism and countering proliferation financing purposes:
• (g) issue regulations,guidelines, combatingthe financingof
• directions,rules or instructions for anti-money laundering, terrorism and countering proliferation financing purposes:
• (h)cooperate and share information for anti-money laundering. combating the financing of terrorism and countering proliferation financingpurposes;and
• (i)take such action asis necessary tosuperviseand enforce compliance by reporting institutions in line with the provisions of the Proceeds of Crime and AntiMoney Laundering Act,2009 and any regulations, guidelines,rules,instruction or directionmade orissued thereunder.
• (3)For purposes ofthis section,"reportinginstitution"has the meaning assigned to it under section2oftheProceedsofCrime and Anti-MoneyLaunderingAct, 2009.

s.197 Delete the word "registered"appearing in the marginal note and substitute therefor the word"licensed"

Delete the word "registered"and substitute

s.197(1) therefor the word"licensed"

s.197(2) Delete the word"registered"and substitute therefor the word"licensed".

s.197(3)

Delete the word "registered"and substitute therefor the word"licensed".

s.197(4)

s.197(5)

s.197A(1)

Delete-

• (a)the word "registered"and substitute therefor the word"licensed";and
• (b)the word"registration"and substitute
• therefor the word"licence"

Delete the word "registered"and substitute therefor the word"licensed"

Delete the words"registered and authorised" and substitute therefor the word"licensed

S.197A(2)( Delete the words"registered and authorised" a) and substitute therefor the word"licensed"

Delete the word "registered"appearing in the marginal note and substitute therefor the

s.198 word"licensed"

s.198(1) Delete the word"registrationand substitute

therefor the word"a license"

Delete the word"registered"appearing in the opening statement and substitute therefor the

s.204B(3) word"licensed"

s.205 Add thefollowing new subsection-

• (2)Where a person was registered under section 19 prior to commencement of the Anti-MoneyLaws and Combating of Terrorism Financing Laws (Amendment) Act,2023,that person shall be deemed to have been licensed under this Act.

Paragraph lofthe Second

Schedule

Banking Act s.2

(Cap.488)

New Delete the word "registered"and substitute therefor the word"licensed"

Deletethedefinitionof"significant and substitutetherefor the

shareholder" followingnew definition-

"significant shareholdermeans a person including a beneficial owner,other than the Government or public entity,who holds. directly or indirectly,or otherwise has a beneficial interest amounting to five per cent ormore of the share capital ofan institution or a corporate entity seeking to become an institution:

Insert the following new definition in proper

alphabetical sequence-

"beneficial owner"means thenatural person

who ultimatelyowns or controls a legal person or arrangement or the natural person on whose behalfa transaction is conducted, and includes that person who exercises ultimate effective controlover a legal person or arrangement;

s.31(3)(a) Delete and substitute therefor the following

new paragraph-

• (a)the CentralBank may disclose any information referred to in subsection (2). including information on anti-money laundering,counter-terrorism financing and counteringproliferation financing to any monetary authority,fiscal or tax agency.fraud investigations agency, domestic or foreign counter parts,or the Financial Reporting Centre,where such information is reasonably required for the proper discharge of the functions of

s.31(3)(b)

the Central Bankunder the Proceeds of Crime and Anti-Money Laundering Act,

2009.

Delete theproviso.

s.32 Insert the following

new subsection

immediately after subsection (5)-

• (6)This section shall apply for antimoney laundering, counter-terrorism financing and countering proliferation financing purposes.

New Insert the following new sections immediately after section 33C

Powers-on anti33D.(l)Pursuant to sections combating the financing of Proceeds ofCrime and Antiterorism and Money Laundering Act,2009,the countering proliferation Central Bank shall regulate, financingmter.supervise and enforce compliance for anti-money laundering. combating the financing of terrorism and countering proliferation financing purposes by all reporting institutions regulated and supervised by the Central Bank and to whom the provisions of the Proceeds of Crime and Anti-Money

Laundering Act,2009 apply

• (2)In undertaking its mandate under subsection (1).the Central
• Bank may-
• (a)vetproposed significant shareholders, proposed beneficial owners,proposed directors and senior officers ofareporting institution:
• (b)conduct onsite inspection:
• (c)conduct offsite surveillance;
• consolidated supervision of an institution
• (d)undertake and itsgroup:
• (e)compel the production of any document or information the Central Bank may require for the purpose of discharging its Anti-Money
• supervisory mandate under ProceedsofCrimeand Laundering Act,2009:
• (f)impose monetary,civil or administrative sanctions for violations related to antilaundering. money combating the financing of terrorism or countering proliferation financing purposes;
• (g)issue regulations, guidelines,directions,rules orinstructions for antilaundering, money combating the financing of terrorismand countering proliferation financing purposes;
• (h)cooperate and share information for anti-money laundering.combating the financing of terrorism and countering proliferation financing purposes;and
• (i)takesuchactionasis necessary to supervise and

Penalties for tomoney laundering. terrorism financing.

• enforce complianceby reporting institutions in line with the provisions of the Proceeds of Crime and Anti-Money Laundering Act, 2009 and any regulations. guidelines, rules, instruction or direction made or issued thereunder.
• (3)Forpurposes
• ofthis section,"reporting institution"has the meaning assigned to it under section2oftheProceedsofCrime and Anti-Money Laundering Act, 2009.

33E. (1)No institution, oranyotherperson shallviolateor fail to comply with any provision of theProceedsof Crimeand AntiMoney Laundering Act,2009,or any regulation,guideline,rule, directionorinstruction issued under the said Act orunder this section.

• (2)A personwho violates or fails to comply with theprovisions
• ofsubsection(1)shall beliable-
• (a)in case of a legal person,to apenaltynot exceeding twenty million shillings:
• (b)in the case of a natural person,to a penalty not exceeding one million shillings;and
• (c)to additional penalties not exceeding one hundred

Central Bank s.4A(1) ofKenya Act

(Cap.491)

Microfinance New Act,2006

thousand shillings in each case for each day or part thereof during which such violation or non-compliance

continues.

Insert the following new paragraph immediately after paragraph (g)-

• (h)pursuant to sections 2A,36A,36B and36CoftheProceeds of Crime andAntiMoneyLaundering Act,2009,regulateand supervise,for anti-money laundering and combating the financing of terrorism and countering proliferation financing purposes, the following institutions-
• banks and their agents;
• mortgage finance companies and their agents;
• mortgage refinance companies and their agents;
• microfinance banks and their
• (iv) agents;
• (v) money remittance providers and their agents;
• (vi)foreign exchange bureaus and their
• agents;
• (vii) digital credit providers and their agents;
• (vi)payment service providers;and
• (ix)any other entity licensed by the Central Bank under any written law.

Insert the following new sections immediately aftersection 36A-

(No.19of 2006)

laundering, combating the terrorism and proliferation financing maters.

LaunderingAct,2009apply.

• 36B.(1)Pursuant to sections 2A. 36A,36Band36CoftheProceeds of Crime and Anti-Money Laundering Act,2009,the Central Bank shall regulate,supervise and enforce compliance for anti-money laundering,combating the financing of terrorism and countering proliferation financing purposes by all reporting institutions regulated and supervised by the Central Bank and to whom the provisions of the Proceeds of Crime and Anti-Money
• (2)In undertaking its mandate under subsection-(l).the Central
• Bank may-
• (a)vet
• proposed significant shareholders, proposed beneficial owners,proposed directors and senior officers of a reporting institution;
• (b) conduct onsite inspection;
• (c)conduct offsite surveillance;
• (d)undertake consolidated supervision of an institution
• anditsgroup:
• (e)compel the production of any document or information the Central Bank may require for the purpose of discharging its supervisory mandate under Proceeds of Crime and AntiMoney Laundering Act, 2009:
• (f)impose monetary,civil or administrative sanctions for

• violations related to antimoney laundering.combating the financing of terrorism and countering proliferation

financing purposes;

• (g) issue regulations,guidelines, directions, rules or instructions for anti-money laundering.combating the financing of terrorism and countering proliferation financing purposes:
• (h)cooperate and share information for anti-money laundering,combating the financing of terrorism and countering proliferation financing purposes;and
• (i)take such
• action asis necessary to supervise and enforce compliance by reporting institutions in line with the provisions of the Proceeds of Crime and AntiMoney Laundering Act,2009 and any regulations, guidelines,rules,instruction or direction made or issued thereunder.

Penalties for 36C.(1)No institution,director, violations relaingtomoneyofficer,employer,agent or any other laundering, person shall violate or fail to comply terrorism with any provision oftheProceeds financing. of Crime and Anti-Money Laundering Act,2009,orany regulation,guideline,rule,direction orinstruction issued under the said Act or under this section.

Antis.2 Corruption and Economic Crimes Act (No.3of 2003)

TheProceeds s.2 of Crime and Anti-Money Laundering Act,2009 (No.9of

2009)

• (2)Aperson who violatesor fails to comply with the provisions ofsubsection (1)shall be liable-
• (a)in case of a legal person,to apenaltynot exceeding twenty million shillings;
• (b)in the case of a natural person,to a penalty not exceeding auo million
• shillings;and
• (c)to additional penalties not hundred thousand shillings in each case for each day or part
• exceeding one thereof during which such violation or non-compliance continues.

In the definition of "economic crime"by

inserting the followingnew paragraph-

• (c)an offence involving the laundering of the proceeds of corruption.

Insert the words"financing of terrorism and proliferation financing"immediately after the words"moneylaundering"in paragraph(g)in the definition of "designated non-financial businesses or professions"

Insert the following new definition in proper alphabetical sequence-

"competent authority"means a public authority other than a self-regulatory body with designated responsibilities for combating money laundering,financing of terrorism and proliferation financing;

s.23(1)

"financial group"

consistsofaparentcompany or ofany other type of legal person exercising control and coordinating functions over the rest of the group. together with branches or subsidiaries that are subject to Anti-Money Laundering and Combating of Terrorism Financing policies and procedures at the group level;

New following

Insert the new section immediately after section 2-

Scope of 2A.This Act shall apply to application. matters relating to combating of money laundering,combating of terrorism financing and combating ofthe financing ofproliferation of weapons ofmass destruction.

$.8 following

• Insert the new subsection immediately after subsection (2)-
• (3)For the purposes of this section,a "person"includes a financial group.

s.12(1) Insert the words"whether as a traveller or through mail or cargo"immediately after the word"Kenya".

• s.16(3) Delete and substitute therefor
• the following new subsection-

(3)Aperson who contravenes the provisions ofsection 12(3)is.on conviction,liable to a fine not exceeding fifty percent of the amount of themonetary instruments involved in the offence,or imprisonment for a term not exceedingfive years,or to both.

Delete and substitute therefor the following newsubsection-

• (1) The principal objective of the Centre is to assist in the identification ofproceeds

• s.23(2)(c)

ofcrime and combating of money laundering. combating terrorism financing and combating ofproliferation financing.

• s.23(2)(b) Insert the words"financing of terrorism and proliferationfinancing"immediately afterthe
• words"money laundering"
• Insertthewords"counterfinancingof terrorism and counter proliferation financing immediately afterthewords"anti-money laundering"
• s.24(a) Delete and substitute therefor the following
• newparagraph-
• (a)shall receive,analyse and interpret-
• (i
• allreports made pursuant to section 12:
• () reports of unusual or suspicious transactions or activities made by reporting institutions pursuant to section44:
• () reports of all cash transactions madetoreporting institutions pursuant to section44:
• (iv)information disclosed to it pursuant to section 42of the Prevention of Terrorism Act,2012:and
• any additional or other information
• (v) disclosed to itand obtained by it in terms ofthis Act.thePrevention of Terrorism Act,2012,or any other written law;
• s.24(b) Delete and substitute therefor the following
• newparagraphs-
• (b)shall send analysed reports received
• under this Act to the appropriate law

enforcement authorities, any intelligence agency.orany other appropriate supervisory bodyfor further handling if,having considered the reports,the Director-General has reasonable grounds to suspect that a transaction or activity involves proceeds of crime,money laundering, financing of terrorism or proliferation financing:

(ba) shall. upon request, share informationwith a competent authorityinso far asthe information requested ispursuant toawrittenlawrelatedto combating proceedsof crime money-launderng terrorism financing or proliferation financing and is relevant to the execution of the mandate of th requesting competent authourity:

s.24(d) Insert the words"or proliferation financing" immediatelyafterthewords"financingof terrorism".

"relatingtothe

s.24(k) Delete thewords commission of an offence"

s.24(q) Delete the words"moneylaundering"and substitutethereforthewords"anti-money laundering,counter financing ofterrorism and counter proliferation financing"

s.24(r) Delete-

• (a)the words"the Centre"appearing at the opening of the sentence;and
• (b)thewords"or fraud investigations agency"and substitute therefor the words"investigative agencyor any competent authority".

• Delete the words "by the Centre under section 24A"and substitute therefor the words "guidelines issued by the Centre under this
• s.24B(1) Act".

s.24C(1) Delete the opening statement and substitute thereforthe followingnew openingstatement-

S.36A

• (1) Where a reporting institution fails to comply with the provisions of this Act,the Centre may.for reasons disclosed in writing-

Insertthefollowing new. subsection immediately after subsection (3)-

• (3A)A supervisory body shall,in carrying out its mandate under this Act,apply its regulatory and supervisorypowers and obligationsconferred to itunder any written law forpurposes ofsupervision and enforcement of the obligations to combat

s.36A(5) Insert tthefollowing new paragraph

• money laundering.terrorist financing and proliferation financing.
• immediately after paragraph (b)-
• (ba)in writing,direct any reporting institution to-
• provide information,reports or statistical returns at such intervals as may be prescribed from time to time:
• (ii) cease or refrain from engaging in any act,omission or conduct in
• contravention of this Act;
• (ii)perform such act as may be necessary to remedy alleged noncompliance with this Act;or
• (iv)perform such act as may be necessary to meet any obligation imposed by this Act.

s.36A(5)(e) Insertthewords"terrorismfinancingor proliferation financing"immediately after the words"money laundering"

New Insertinthe following newsections immediately after section 36A- Cooperation and collaboration of supervisory bodies,

36B.(1)A supervisory body may cooperate and coordinate withdomestic and foreign counterparts forpurposesof combating gmoney laundering. terrorism financing or proliferation financing.

• (2)In exercisingthe power
• under subsection (1). supervisory body may-
• (a)share information and documents with a domestic foreign coumterpart;
• (b)conduct inquiries or undertake onsite inspection on behalf of domestic or foreign counterpart;
• (c)on behalf of domestic or
• foreign counterpart, appoint competent persons to investigate any matter under this Act;
• (d)authorise facilitate foreigncounterpartsto undertake inquiries under this Act:
• (3)Any information obtained under this section shall-
• (a)be kept confidential and may only be disclosed to

Powersof supervisory bodies.

• athird party with the written consent of the supervisory body providing the information;and
• (b)shall be used only for the
• specified purpose.

36C.(1)Without prejudice to theprovisions ofsection36A,

a supervisorybodyshall have powers-

• (a)to supervise,monitor and ensure compliance with anti-money laundering, combating terrorism financing and countering proliferation financing requirements under.this Act by reporting institutions regulated or supervised by it;
• (b)to conduct anti-money laundering, combating terrorism financing and countering proliferation financing inspections of reporting institutions regulatedor supervised byit;
• (c)to compel production of any information or document relevant to monitoring compliance with the anti-money laundering. combating terrorism financingand countering proliferation financing requirements of reporting institutions

Risk-based approach

• regulated or supervised byit;
• (d)to issue guidelines, directions or rules for combating anti-money laundering. combating terrorism financing and countering proliferation financing purposes 01 reporting institutions regulated orsupervised byit;
• (e)through their respective and reporting institutions regulated or
• legislation,to impose both monetary administrative sanctions upon supervised by itfor failuretocomplywiththe anti-money laundering, combating terrorism financing and countering proliferation financing requirements:and
• (f) to undertake consolidated supervision for antimoney laundering, combating terrorism financing and countering proliferation financing purposes of a reporting institution and its group.
• 36D.(1)TheCentreand supervisory bodies shall,in fulfillingtheirobligationto effectively monitorreporting institutions,usearisk-based approach.

• (2)The Centre and supervisory bodies shall,in applyingarisk-basedapproach tosupervision, ensure that they-
• (a)have a clear understandingoftherisks ofmoney laundering. terroristfinancing and proliferation financing at national, sectoral pue institutional level:
• (b)have on-site and off-site accesstoallrelevant the and risks customers,productsand location and any other
• information on specific domestic international associated with services, delivery channels, geographical risk factors ofthe relevant reporting institutions they supervise;and
• (c)base the frequency and intensityofon-siteand
• off-site supervision on-
• the money laundering.terrorist financing and proliferation financing risks,and the policies internal controls and procedures associated with the business activities of

• a reporting institution, as identified by the Centre or supervisory body's assessment of its risk
• profile;
• the risks of money (i) laundering.terrorist financing and proliferation financing inthe country as identified within any information that is made available to the Centre or supervisory body: and
• the characteristics of the reporting institution, in particular the diversity and number of such institutions and the degreeof discretion allowed to a reporting institution under the risk-based approach.
• (3)The Centre or supervisory body shall review the assessmentofthe moneylaundering,terrorist financing and proliferation financing risk profile of a reportinginstitutionorgroup, including the risksofnoncomplianceperiodically.and

s.39(3) Delete-

• (a)the words "one million shillings"and
• substitute therefor the words"five million shillings";and
• (b)the words "five million shillings"and substitute therefor the words"twenty-five
• million shillings"
• S.44 (1)Delete subsection (2)andsubstitute
• therefor the following new subsection-
• (2)Upon suspicion that any of the transactionsoractivities describedin subsection (1)or any other transaction or activity could constitute or be related to money laundering, terrorism financing, proliferation financing or to the proceeds ofcrime,a reporting institution shall reportthe suspicious or unusual transaction or activity to the Centre in the specified manner within two days after the suspicion arose.
• (2) Add thefollowingnew subsection immediately after subsection(10)-
• (1l)For purposes of this section,the Centre shall specify the manner in which suspicious transaction,activity reports and cash transaction reports shall be filed.

Insert the words "terrorism financing, proliferation financing"immediately after the words"money laundering"

s.44A(1) (a)

S.44A(1) Insert the words "proliferation financing" (b)(ii) immediatelyafter the words "financing of terrorism".

when there are major events ordevelopments inthe management and operations of the reporting institution or

group.

• Delete and substitute therefor the following
• s.45(1) new subsections-
• (1)Areportinginstitution shall identify and verify-
• (a)
• any applicant seeking to enter into a business relationship with it or to carryouta transaction or seriesof transactions with it:or
• (b) acustomerwhether permanentor occasional,by taking reasonable measures toestablishthetrue identity of that person by requiring the applicant orcustomerto produce an official record reasonably capable of establishing the true identity of the applicant or customer.
• (1A) The record envisaged under subsection (1) shall include-
• (a)in the case of an individual-
• (i)a certificate of birth;
• (i) a national identity card:
• (ii) passport:
• (iv) a driver's licence: or
• (v)any otherofficial means of identification as may be prescribed:
• (b)in the case of a body corporate-
• ()evidenceof
• registration or incorporation;
• (i)the Act establishing the body corporate;
• (i) a corporate resolution authorising aperson to act on behalfof the

body corporate together with a copy of the latest annual return submitted in respect of the body corporate in accordance with the law under which it is established: or

• (iv)any other item as may
• be prescribed:
• (c)in the case ofagovernment department.a letterfromthe accounting officer and the relevant authorization from the National
• Treasury.
• Delete and substitute therefor the following
• s.45(2) new subsection-
• (2)A reporting institution shall undertake customer due diligence on the existing customers or clients onthe basis of materiality and risk and taking into account whether the customer due diligence measures have previously been undertaken and the adequacy of data obtained.
• s.45(3)

to establish whether the person is acting on behalf of another person"and substitute therefor the words"verify that any person purporting to acton behalf of the customer is so authorised and identify and verify the identity of that person."

• Delete the words take reasonable measures
• s.45(4) Delete and substitute therefor the following new subsection-
• (a)to establish the true identity of the person on whose behalf or for whose ultimate benefit the applicant may be acting in the proposed transaction,whether as trustee.
• nominee,agent or otherwise;and
• (b)to identify and verify the identity of the beneficial owner using therelevant informationordataobtainedfroma reliable source.
• s.45(5)() Insert the words "terrorism financing or proliferation financing"immediately after the words"money laundering
• S.45A(1) Insert the words "or proliferation financing (b) immediately afterthewords financing'
• S.45A(2) Delete and substitute therefor the following
• new subsection-
• (2)In addition toenhanced customer due diligence measures,a reporting institution shall applyappropriate countermeasures, proportionate totheriskpresentedby countries-
• (a) when called upon to do so by the
• Financial Action Taskforce:
• (b) independently of any call bythe Financial Action Taskforce to do so; or
• (c)
• as advised by the Cabinet Secretary
• S.45A(3) Insert the words "or proliferation financing immediatelyafterthe "terrorism financingappearing in the opening statement.

Insert the following subsection

new immediately after subsection(3)-

• (4)The Centre shall disseminate to reporting institutions in such manner as it may determine-
• (a) any high-risk country identified pursuant to this section;
• (b)any which are
• countermeasures applicable to the country;

• (c)the concerns regarding the weaknesses in counteringof proliferation financing systems of that
• the anti-money laundering.countering of terrorism financing. country:and
• (d)anypubliclyavailable information published by the Financial Action Task Force (FATF) on any jurisdiction which has been identified by it as having significant or strategic deficiencies in its anti-money laundering.countering of terrorism financing and countering of proliferation financingmeasures.
• Insertthewords"both domesticand international"immediately after the words"all
• s.46(1)(a) transactions".
• s.47(a) Insert the words"and proliferation financing" immediately after the words "money laundering.
• s.55A(1)(a) Delete and substitute therefor the following
• newparagraph-
• (a)the Attorney-General,who shall be the Chairperson:

s.55A(1)(b) Delete.

s.55B(1)(a)

Delete the words"and oversccing

s.55B(1)(b) Delete the words"and overseeing"

s.55B(1)(c)

s.130B(3) Insert the words "proliferation financing"

Delete the words"and overseeing"

• immediately afterthewords "terrorism financing".

Fourth Delete and substitute therefor the following

Schedule.new Schedule-

FOURTHSCHEDULE

[Section 44(6)] REPORTINGTHRESHOLD

Areporting institution shall file reports on all cash transactions exceeding USs 15,000 or its New Police Service Act,2011 (No.11Aof National 2011).

Ethics and s.11 AntiCorruption Commission Act,2011 (No.22of 2011)

Mutual Legal s.2 Assistance equivalent in any other currency carried out by it.

Insert the followingnew section immediately

after section56-

Controlled delivery.

56A.(l)An authorised officer may.if he or she considers it necessary to do so,allow controlled delivery with a view of investigating an offence and the identification ofpersons involved in the commission of the offence.

• (2)For purposes softhis
• section-

"authorisedofficer" meansa gazetted officer,police officer incharge ofa police station or any other person upon whom any written law vests functions of the maintenance of law and order. and

"controlled delivery"means the technique of allowing illicit or suspect consignments to pass out of,through orinto the territory of Kenya,with the knowledge and under the supervision of an authorised officer.

Insert the following new subsection

immediately after subsection (3)-

(3A) State agencies and organs referred to in subsection (3) may grant the Commission accessto relevant information in the prevention and investigation of economic crime.

Insert the following new definition in proper alphabetical sequence- Act,2011 (No.36of 2011)

s.43

National New Payment System Act, 2011 (No.39of 2011)

"designated non-financial business or profession" has the meaning assigned to it under section 2ofProceeds of Crime and Anti-Money Laundering Act,2009:

Delete thewords "secrecyrules" and substitute therefor thewords"orDesignated Non-Financial Business orProfession secrecy or confidentiality rules."

Insert the followingnew sectionsimmediately after section 17-

Powers on antilaundering, combating the financing of countering proliferation matters,

17A.(1)Pursuant to section 2A, 36A,36B and 36Cofthe Proceeds of Crime and Anti-Money Laundering Act,2009,the Central Bank shall regulate,supervise and enforce compliance for anti-money laundering,combating the financing of terrorism and countering proliferation financing purposes by all reporting institutions regulated and supervised by the Central Bank towhom the provisions of the

Proceeds of Crime and Anti-Money LaunderingAct,2009 apply.

• (2)In undertaking its mandate under subsection (1).the Central
• Bank may-
• (a) proposed significant shareholders, proposed beneficial owners,proposed directors and senior officers of a reporting institution:
• (b) conduct onsite inspection:

• (c) conduct offsite surveillance;
• consolidated supervision of an institution
• (d) undertake and its group;
• (e) compel the production of any document or information the Central Bank may require for the purpose of discharging its supervisory mandateunder Proceeds of Crime and Anti-
• Money Laundering Act,2009;
• (D impose monetary,civilor administrativesanctionsfor violations relatedto antimoney laundering.combating the financing of terrorism and countering proliferation
• financing purposes;
• issue regulations,guidelines, g directions, rules or instructions for anti-money laundering. combating the financingof terrorismor countering proliferation financing purposes;
• (h) cooperate and share information foranti-money laundering. combating the financing of terrorism and countering proliferation financing purposes:and
• take such action asis necessary to supervise and enforce compliance by reporting institutions in line with the provisions of the Proceeds of Crime and AntiMoney Laundering Act,2009

Limited Liability Penalties for violntions relatingbo money laundering. terrorism financing.

• and Aue regulations, guidelines,rules,instruction or directionmadeorissued thereunder.
• (3)For purposes of this section,"reporting institution" has the meaning assigned to it undersection2oftheProceeds ofCrime and Anti-Money Laundering Act,2009.
• 17B.(1) No institution,director, officer,employer,agent or any other person shallviolateor fail to comply with any provision of the Proceeds JO Crime and Anti-Money LaunderingAct,2009,or any regulation,guideline,rule,direction or instruction issuedunder the said Act or under this section.
• (2)A person who violates or fails tocomplywith the provisionsof subsection(I)shall be liable
• (a)in case of a legal person,to a penalty not exceeding twenty million shillings:
• (b)in the case of a natural person,to apenalty not exceeding one million
• shillings:and
• (c)toadditionalpenalties not thousand shillings in each case for each day or part
• exceeding one hundred thereof during which such violation or non-compliance continues.

Insert the followingnew definitions in proper alphabetical sequence- Partnership Act,2011 (No.42of 2011)

• s.29

beneficial owner"means the natural person

whoultimatelyowns or controlsalegal person or arrangements or the naturalperson on whose behalf a transaction isconducted. and includes those persons who exercise ultimate effective controlover a legal person or arrangement;

"Competent Authority"means the Attorney

General,any criminal investigation agency established by law,law enforcement agencies including the Financial Reporting Centre and Kenya Revenue Authority:

"nominatormeans an individual,group of individuals orlegalpersonthat issues nominee to act on their behalf in the capacity

instructions,directlyorindirectly.toa ofa partner;and

"nominee partner"means an individual or legal person instructed by the nominator to act on their behalf in a certain capacity regardinga limitedliability partnership:

• s.17(2) Insert the following Mau paragraph immediately after paragraph (f)-
• (fa)a copy of the register of beneficial
• owners;
• Delete and substitute therefor the following new section-

Filing of annual

recurs.

• 29.(1)Alimited liability partnership shall file its annual returns with the Registrar within thirty days of the anniversary of its registration under this Act or any other period as the Registrar may upon application allow.
• (2)The annualreturms referred to under subsection (l)shall contain the followinginformation-

New

• (a)the address of the limited liability partnership's registered office and,ifa post office box number is known,the physical address of that office;
• (b)the limited liability
• partnership's principal business activities;
• (c)a declaration of solvency or
• insolvency;
• the particulars prescribed by (d) the regulations of-
• themanager ofa limited liability partnership;
• the partners:and
• (i) any person appointed by the limited liability partnership as an authorisedperson.
• (3)If limited liability partnership fails to comply with the requirements of subsection (1),the limited liability partnership or any officer ofthelimitedliability partnership in default is liable to pay to the Registrar an administrative
• penalty of two thousand shillings.

Insert the followingnew sections immediately after subsection31-

Registers and documents to be kepe. keepatits

31A.(1)Alimited liability partnership shall registered office-

• (a)anotice of registration issued under this Act;

• (b)a register of the name and address of each partner. manager and legal representative where applicable;
• C a copy of the most recent annual declaration of solvency or insolvency;
• (d)a copy of any statement lodged with the Registrar
• under this Act;
• (e)a copy of a certificate,if any.issued by the Registrar under this Act;
• (f)acopy ofthelimited
• liability partnership agreement and any amendment thereto;
• (g)a register of charges and
• security rights created under the MovableProperty Security Rights Act,2017: and
• (h)any other documents that the Registrar may,from time to time,require to be kept.
• (2)A limited liability partnership shall lodge with the Registrar,a copy of the register of the name and address of each partner, manager andlegal representative where applicable, within thirty ofits preparation.
• (3)A limited liabiliry partnership shall keep the

Beneficial owners.

• documents in subsection (1) for a
• minimum period of seven years.
• (4)The documents kept under subsection (l)shall be available for inspection or copying during ordinary businesshours at the request ofapartner.
• (5)A partner who is deprived oftheright to inspect the documents kept under subsection (1)may apply to the High Court to compel the limited liability partnership to provide the documents.
• (6)A limited liability partnership that fails to comply withthis sectioncommitsan offence and shall,on conviction,be liable to a fine not exceeding five hundred thousand shillings and,in the case ofa continuingoffence,to a further fine not exceeding fifty thousand shillings for each day that the offence continues.
• (7)The provisions ofthis sectionshall apply to foreign limitedliability partnerships.
• 31B.(1)Every limited liability partnership shall keep a register of
• itsbeneficial owners.
• (2)A limited liability partnership shall enter inits registerof beneficial owners, information relating to its beneficial owners as prescribed in the regulations.
• (3)A limited liability partnership shall lodge with the

Registrar a copy of its register of beneficial owners-

• (a)in the case of a proposed limited liability partnership, when submitting documents as provided under section 17of this Act:and
• (b)in the case of existing
• limited liability partnership. within sixty daysof coming into force of this section.
• (4)The Registrar may.on the application of the limited liability partnership or forany otherreason the Registrar thinks fit,extend the period referred to in subsection (3)(b) for a period not exceeding thirty days.
• (5)A limited liability partnership shall lodge with the Registrara copy of any amendment toitsregisterofbeneficial owners within fourteen days after making the amendment.
• (6)Every limited liability partnership shall keeprecordsofits beneficial owner's information for atleast ten years from the date. which a person ceases to be a beneficial owner.
• (7)Ifalimited liability partnership fails to comply with the requirements of subsection (5).the limitedliability partnership and each manager in default is liable to pay to the Registrar, ue administrative penaltyoftwo thousand shillings.

• (8)Ifthelimited liability partnership continues to failto comply with the requirementof subsection (7),the limited liability partnership and each manager in default is liable to pay to the Registrar a further administrative penalty of one hundred shillings for each day of default.
• (9)Ifthelimited liability
• partnership does not comply with subsection (l) or subsection (6). the limited liability partnership, andeachofficerin default, commits anoffenceandon conviction are each liable to a fine not exceeding five hundred thousand shillings.
• (10)If,after a limited liability
• partnership or any ofits officers is convictedofanoffenceunder subsection (9).the limited liability partnershipcontinues to fail to comply with the relevant requirement,the limited liability partnership,and each officer of the company whois in default. commits a further offence on each day on which the failure continues and on conviction are eachliable to a fine not exceeding fifty thousand shillings for each such offence.
• (11)Notwithstanding the provisions of subsection (9)and (10).the Registrar may give a directiontoalimitedliability partnership that is in breach of subsection(3)(b) specifying-

Registerof

nominee partsers

• (a) the statutory requirement of
• which the limited liability partnership is in breach:
• (b) the action that the limited liability partnership is required to take;
• (c)that the limited liability
• partnership has to comply with the direction within fourteen days;and
• (d) the consequence provided
• for under section 33D for failure to comply with the direction by the Registrar.
• 31C.(1)Every limited liability partnership shall keep a register of nominee partners atits registered office.
• (2)A limited liability partnership shall enter in its
• register of nominee partners-
• (a) the name and address of the
• nominee partner,
• (b)the date on which the person became a nominee partner,and
• the name and address of the partner'snominator.
• (3)Every limited liability partnershipregisteredbeforethe comingintoeffectofthisprovision shall lodge with the Registrar,a copyofitsregisterofnominee partners within sixty days of coming into effectofthis provision.
• (4)A limited liability partnership shall lodge with the

Registrar, a copy of any amendment to its register of nominee partners within fourteen days after making the amendment.

• (5)Theregister of nominee partners shall notbe open to inspection by members of the
• public.
• (6)If limited liability partnership fails to comply with a requirement under subsection (3) orsubsection (4),the limited liability partnership.and each officer in default is liable to pay to the Registrar, an administrative penalty of two thousand shillings.
• (7)This section shall apply to foreign limited liability partnerships.

New Insert the followingnew Part immediately after section 33-

PART VIA-STRIKEOFF

Insert thefollowingnew sectionsimmediately

New after section33-

Administrative strike

off by the Registrar.

business or is in operation.

33A.(1) Where the Registrardetermines thata limited liability partnership is not carrying on business or is not in operation,the Registrar may send tothe registered address of the limited liability partnershiporby other means as Regulations may prescribe, a communication inquiring whether the limited liability partnership is carrying on

• (2)For purposes of

subsection(1),groundsupon

• which Registrar may form a reasonablebeliefthatalimited liability partnership is not carrying on business may

include-

• (a)wherealimitedliability partnership has failed to file annual returns for a period of five years or more;or
• (b)wherealimitedliability partnershiphas failedto
• comply with the requirement to lodgea copy of theregister ofbeneficialownership after being issued with a directive under section31B.
• (3)The Cabinet Secretary may provide in regulations,grounds upon which a limited liability partnership may be considered not to be carrying on business for the purpose of this section.
• (4)A limited liability partnership shall respond within one month of the date of the communication from the Registrar under subsection (l).
• (5)Where the Registrar does notreceiveanyresponseas requiredunder subsection(4).the Registrar shall notify the limited
• liability partnership that--
• (a)noresponse received;and
• has been
• (b)ifno response is received
• within one month after the date of notification under this subsection,the limited

liability partnership shall be struckoff.

• (6)Wherethe Registrar receives a response confirming that the limited liability partnership is not carrying on business or is not in operation, theRegistrar shall direct the limitedliabilitypartnershipto make an application for strike off.
• (7)Where the Registrar does notreceivearesponseon application under subsection (6) within one month,the Registrar may,by notice in the Kenya Gazertte notify the limited liability partnership that,at the end of a period of three months from the date of the notice,the name of the stated limited liability partnership shall,unless cause is shown to the contrary,be struck off from the Register and the limited liability partnership shall be dissolved.
• (8)Upon expiry of the period specified in the notice sent under subsection (5).the Registrar may. unless cause to the contrary. strike off the name of the limited liability partnership from the register.
• (9)After striking off under this section,the Registrar shall notice indicating that the name of thelimitedliability partnership has been struck off from the
• publish in the Kenya Gazette a Register.

• (10)On publication ofthe notice undersubsection(9),the limitedliabilitypartnership shall
• be dissolved.
• (11)Despite subsection (10)-
• (a)any liability incurred by a manager or partner of the limited liabilitypartnership continues toaccrue tothat manager or partner and may be enforced as if the limited liabilitypartnership had not been dissolved: and
• (b)nothing in this section
• shall affect the power of the Court to liquidate a limited liabilitypartnership whichisstruckoffunder this section.
• 33B.(1)Wherealimited liability partnership isin liquidation and-
• (a) the Registrar reasonably
• believes that-
• the affairs of the limited liability partnership are fully woundup:or
• ii) no liquidator acting:and
• is
• (b) thereturns required to be made by the liquidator in respectofthe limited liability partnership have aou made for six consecutive months.

Duty of the Registrar

on liquidation.

• the Registrar shall publish a notice in the Kenya Gazette and notify the limitedliability partnership or the liquidator that at theendofthenotice,thename of thelimited liability partnership shall,unless cause is shown to the contrary.be struck off from the Register and the partnership shall

be dissolved.

• (2)Upon expiry of the period specified inthe notice under subsection (l).the Registrar may, unlesscauseis shownto the contrary.strike off the name of the limited liability partnership's name from the register.
• (3)After striking the name of the limited liability partnership off the Register under subsection (2).the Registrar shall publish a notice in the Kenya Gazette that the name of the limited liability partnership has been struck off from the Register.
• (4)Onpublication ofthe noticeunder subsection(3),the limited liability partnership shall be deemed to be dissolved.
• (5)Despite subsection (4)-
• (a) any liability incurred by a manager and partner of the limited liability partnership shall continue to accrue to that manager orpartner and may be enforced as if the limited liability hadnot been dissolved;and

Strike offon application.

• (b)nothing in this section shall affect the power of theCourt toliquidatea limited liability partnership which is struckoff under this section.
• 33C.(1) The Registrar may strikeoff thenameofa limited liability partnership from the Register onapplicationbya limited liability partnership.
• (2)An application under this section shall only be effective if-
• (a)it is made on behalf of the limited liability partnership by its manager or bya majority of the partners; and
• (b)it contains such information as prescribed byregulations.
• (3)The Registrar may not
• strike off the name of a limited liabilitypartnership fromthe Register under this section until after three months from the date of the publicationofanoticein theKenya Gazette-
• (a) stating that the Registrar may exercise the power under this section in relationto thelimited liability partnership:and
• (b)inviting anypersonto
• show cause why the name

• ofthelimited liability partnership should not be struckoff.
• (4)After striking the name of the limited liability partnership off the Register,the Registrar shall publish in the Gazettea notice that the limited liability partnership'sname has been struck off the Register and the date of the striking off.
• (5)Onpublication of the notice under subsection (4).the limited liability partnership shall be deemed to be dissolved.
• (6)Despite subsection (5)-
• (a) any the liability incurred by a manager or partner of the limited liability partnership shall continue to accrue to that manager orpartner and maybe enforced as if the limited liability partnership had notbeen dissolved;and
• (b)nothing in this section
• shall affect the power of the Court to liquidate a limited liability partnership which is struck off under this section.

When an application for strike off maynot be made.

• partnershiphas-
• 33D.(1) An application under section 33C shall not be made if. at any time during the preceding three months,the limited liability
• (a)changed its name;

• (b)
• carried on business:
• (c) madea disposalforvalue of property that, immediately before ceasing to carry on business,it held for the purpose of disposal for gain in the normal course of carrying on business: or
• (d) engaged in any other activity.exceptonethat is-
• (#) necessary or expedient for the purpose of making an application under section 33C,or deciding whether to make an application;
• (i) necessary or expedient for the purpose of closing down the affair of the partnership:
• necessary or expedient forthe purpose of complying with any statutory requirement;or
• (iv) specified bythe Cabinet Secretary by order made under subsection (2):or

Withdrawal ofan application.

• (e) commenced insolvency process under the Insolvency Act,2015,for the purposes of dissolving the limited liability partnership.
• (2)The Cabinet Secretary may,byorder published in the Kenya Gazette-
• (a)specify an activity for the purposeofsubsection
• 0:(AD(P)(1)
• (b) alter the period in relation to which the performance ofan actreferred to under that subsection is. relevant.
• (3)For the purposes of this
• section, limited liability partnership shall not be treated as carrying on business only because it makes a payment in respect ofa liability incurred in the course ofcarrying UO business.
• 33E.(1) An applicant may.at anytimebeforethelimited liability partnership's name is struck off through a prescribed notice to the Registrar withdraw anapplicationtostrikeoffa limitedliabilitypartnership's name off the register.
• (2)Upon receipt of the notice ofwithdrawalunder subsection (1).the Registrar shall-
• (a) send to the limited liability partnership's registered

Objection to stickingoff.

• address,a notice that the application to strike off the nameofthelimited liability partnership from the Register has been withdrawn;and
• (b)where a notice to strike off
• the limited liability partnership had been published,publish a notice inthe Kenya Gazette indicating that the application to strike off has been withdrawn.
• 33F.(1) An applicant may,by written notice to the Registrar, objectan application tostrikea limited liabilitypartnership's name off the register at any time beforethelimitedliability partnership's name is struck off the register.
• (2)An objection under this sectionshallbe madeonthe ground that there is reasonable causewhythenameofthe limited liability partnership should not be struck off.
• (3)An objectiontothe striking off under subsection (1) shallbe submitted to the Registrarby notice in 三 the prescribed form and manner.
• (4)Upon receipt ofanotice ofobjection,the Registrar shall-
• (a) where applicable,notify the applicant in writing of the objection:and

records after strike off.

• (b)in deciding whether to allow theobjection, take into account such considerations as may be prescribedby
• regulations.

Requirement tokeep

• 33G.(1)A manager ina limited liability partnership shall berequiredtokeeprecords specified under this Part for at least seven years after the limited liability partnership has been struckoff.
• (2) Any person who contravenes this section commits an offence and shall be liable,on conviction,toafine not exceeding five hundredthousand shillings.

Restoration where mistake.

• 33H.(1)The Registrar may
• restore the name ofa limited liability partnershiptothe Register if satisfied that the striking off isa result ofa mistake of the Registrar.
• (2)For purposes of subsection (l),"a mistake of the Registrar"excludes a mistake that is made on the basis of wrong. false or misleading information given bythe applicant in connection with the application for striking off of the name of the limited liability partnership from the Register.
• (3) The Registrar may restore the name of a limited liability partnership to the Register by
• publishing in the Gacerite a notice

Effect ofrestoration.

Registers.

declaring the restoration takes effect on the date of publication of the notice.

Restoratioe by Coun.

33L.(1)An application may be made to the Court to restore to the Register a limited liability partnership that has been struck from the Register.

• (2)Anapplication under subsection (l)may be made by-
• (a)the Attorney General:
• (b) a former partner of the firm;
• any person who would appear to the Court to have an interest in the limited liability partnership:or
• (d)a former manager.
• 33J.(1)Where the name of a limited liabilitypartnership is restored to the Register under this Act, the limited liability partnership shall be deemed to be inexistenceas if itsnamehadnot
• been struck off the register.
• (2)The limited liability partnership is not liable for any liability arising from an obligation to file any document with the Registrar during the time within which it was struck off.
• 33K.(1) The Registrar shall, subject to this Act,keep a register oflimitedliability partnerships.

• (2) The Register shall compriseof-

2. (a)the information relating to limited liability partnerships that is contained in documents lodged or filed with,or delivered to,the Registrar under this or any other 3. Act, 4. (b) certificates of registration issued by the Registrar, and 5. certificates of registration

• C) of limited liability partnership's charges and security rightscreated under the Movable Property Security Rights Act,2017.

7. (3)The Registrar shall keep records ofa struck off limited liability partnership for at least sevenyearsafter whichthe Registrar may arrange for the records to be transferred to the 8. Kenya National Archives and Documentation Service. 9. (4)Any person may,upon 10. payment of the prescribed fee- 11. (a) inspect any public document lodged with the Registrar under this Act: or 12. (b) apply for a certified or 13. uncertified copyofa document forming part of

Rectification of register.

the public records held by the Registrar.

• (5)The Registrar shall not disclose or permit the inspection ofanypersonalidentifiable information including-
• (a) telephone numbers and emails:
• (b) residential address;or
• (c) any other information that may be restricted from disclosure by any other law.
• may disclosethe information
• (6)The Registrar subsection (5)-
• (a) to competent authorities;
• or
• (b) wherethe Court orders suchinformationtobe disclosed.
• 33L.(1)A person in respect of
• which an entry in a register-
• has been omitted;
• (a)
• isincorrect;or
• (b)
• (c) has been included in error,

may apply to the Registrar for rectification of the register.

• (2)Uponreceiptofthe applicationunder subsection (l), the Registrar may require the applicant to. produce such document or furnish such information as theRegistrar deems necessaryin order to form

an opinion whether the register is

to be rectified.

• (3) The Registrar shall give notice of that application to such other person as the Registrar may identify being apersonwho appears to the Registrar to be concermed or to have an interest in the business.

2. (4)The Registrar may proceed to rectify the register where no objection is received from persons notified in subsection (3)above. 3. (5)The Registrar may. without an application being madeunder subsection (1). rectify the register where,in the 4. view of the Registrar an entry- 5. (a)has been omitted; 6. (b)is incorrect:or 7. (c) has been included in 8. error.

Provided that the Registrar shall take into account fair administrativeactions before rectifying the register.

• subsection (1),the Registrar may refuse any application if the error. mistake oromission does not arise in the ordinary course of the discharge of the duties of the
• (6)Notwithstanding Registrar.
• (7)Any person aggrieved by the refusal of the Registrar to rectify the particulars in the

s.34

register may.within thirty days of the decision of the Registrar, appeal totheHigh Court for

determination.

Delete section 34 and substitute therefor the followingnew section-

limited liability

pannership.

• 34.(1)If alimited liability partnership becomes insolvent, the provisions of the Insolvency Act,2015,shallapply with respect tothe conductof the receivership or management of the affairs of the partnership
• (2)Ifalimitedliability partnership becomes liquidated. the provisions of the Insolvency Act,2015shallapply.

Insert the following new Part immediately

New after section34-

PARTVIIA-FOREIGNLIMITED

LIABILITYPARTNERSHIP

New Insert the followingnew sectionsimmediately

after section34-

Foreign limited

34A.(l)A foreign limited liability partnership shall not carry on business in Kenya unless it is registered as a foreign limited liability partnership under this Act

liabifity parinership.

• (2) A person who contravenes subsection (1) commits an offence and shall be liable,on conviction,to a fine not exceeding two hundred and fifty thousand shillings,or to imprisonmentfor a fora term of not exceeding three years,or to both.

Registration of foreign limited partnerships.

• 34B.(1)A person seeking to register a foreign limited liability partnership shall,in addition tothe requirements undersections17.19and20of this Act,make an application to the Registrar-
• (a) in the prescribed form:
• and
• (b) accompanied by a notarized copy of-
• the certificateof registration from its country oforigin or any other similar document;
• (i) the partnership agreement torany other similar document;
• a list of partners and managers and their particulars;and
• (iv)a list of beneficial owners and their
• particulars.
• (2)The nameofaforeign limited liability partnership may be-
• (a)the name of the limited
• liability partnership under the law of the country or territory in which it is incorporated; or
• (b)an name specified in accordance
• alternative with this Act:

Provided that the name complies with the provisions relating to names under this

Act.

• (3)The Registrar shall,on being satisfied with the application and on payment of a prescribed fee-
• (a) register the foreign limited liability partnership;
• b allocate a registration number for the foreign limited liability partnership:and
• C issue a notice registration in prescribed form.
• of the

Appointment ofa 34C.(1)A foreign limited local representative liability partnership shall,for by a foreign limited liabilitypartnership.purposes ofoperating inKenya, representative who shall be-

• (a)a permanent resident in Kenya;or
• (b) a Kenyan citizen who ordinarily resides in
• Kenya.
• (2)A foreign limited liability partnership shall lodge with theRegistrar the particulars ofevery person who acts asa local representative ofthe foreign limited liability partnership and the consent of the local representative to act as such.

Registered office.

Annual returns.

• (3)The local representative
• shall issue and lodge with the Registrar a written notice of his or her intention to vacate the officetotheforeign limited liability partnership.
• (4)Where the local representative has lodgeda notice under subsection (3),he or she shall cease to be the local representative of theforeign limited liability partnership on expiry of thirty days from the date of the lodgment of the notice.
• (5)A foreign limited liability partnership and every partner of the foreign limited liability partnership who fails to comply with subsection (1) commits an offence.
• 34D.Aforeign limited liability partnership shall have a registered office in Kenya to which all communications and notices may be addressed.
• 34E.(1) Aforeign limited liability partnership shall file its annual returns with the Registrar withinthirty daysofthe anniversary of its registration under the Actor anyother period as the Registrar may upon application allow.
• (2)The annual returns of a foreign limited partnership shall state the date to which it is made upand shall contain the
• followinginformation-

• (a) the address of the foreign limited liability parinership's registered office and,if a postal address is given,the physical address of that office;
• (b)t the foreign limited liability partnership's principal business activities;
• a declaration of solvency
• (c) orinsolvency:and
• (d) the particulars prescribed by the regulations of-
• the manager ofa foreign limited liability partnership:
• (ii)
• the partners;and
• (ii) the local representative or Aue person appointed by the foreign limited liability partnership as an authorisedperson.
• (3)If aforeign limited liability partnership failsto complywith therequirementsof subsection (l).the limited liability partnership andany officer of the limited liability partnership in default is liable to pay tothe Registrar,an administrativepenalty of two thousand shillings.

Cesstion of basiness in Kenya.

• 35F.(1)A foreign limited liability partnership that ceases operations in Kenya shall within sevendaysof such cessation, lodge with the Registrar a notice ofthe cessation.
• (2)The cessation of business shalltake effect upon the lodging of thenotice under subsection(l).
• (3)The obligation of any
• foreign limited liability partnership to lodge any document with the Registrar. except those documents that ought to have been lodged before such date, shall cease upon lodging of the notice under subsection (1).
• (4)The Registrar shall publish a notice in the Kenya Gazette indicating that after ninety days from the date of publication of the notice,the name of the specified foreign limitedliability partnership shall,unlesscauseis shown to the contrary.be struck off the Register and the limited liability partnership shall be deemed to be dissolved.
• (5)Upon expiry ofninety days period specifiedunder subsection (4),theRegistrar shall-
• (a)remove the name of the
• foreign limited liability partnership Register;and

Requiremems tokeep

• (b)publish in the Kenya Gazette a notice indicating that the name ofthe foreign limited liability partnership has been struck off from the Register.

Notice of liquidation or dissolution.

• 34G(1)Aforeign limited liabilitypartnershipthatis liquidated or dissolved shall. withinthirtydays after the liquidation or the dissolution, lodge or cause to be lodged with the Registrar a notice of such liquidation or dissolutionin accordance with the Insolvency Act.2015.
• (2)The Register shall on
• receipt ofthe noticeunder subsection(l)publish the notice in theKenya Gazette.
• (3)The Registrar shall,on
• expiry ofninety daysfrom the dateofpublication ofthe notice under subsection(1)-
• (a) remove the name ofthe foreign limited liability partnership
• fromthe Register,and
• (b)publish in the Kenya Gazette a notice indicating that the name ofthe foreign limited liability partnership has been struck off from the Register.

34H (1) A local records afer strike off. representative ina foreign Companies s.2 AcL,2015 (No.17of 2015)

s.13(4)

limited liability partnership shall berequiredtokeeprecords under this Act for at least seven years after the limited liability partnership has been struck off.

(2)Any person who contravenes this section commits an offence and shall be liable,on conviction,to a fine notexceeding fivehundred thousand shillings.

Insert the following new definitions in proper alphabetical sequence-

"company secretary" has the meaning assigned to it under the Certified Public Secretaries ofKenya Act,1988;

"nominator"means an individual,group of personthat issues instructionsdirectlyor indirectly toa nominee to act on their behalf in the capacity

individualsor legal ofadirector ora shareholder:

"nominee"means an individual or legal person instructed by the nominator to act on their behalf in a certain capacity regarding a company:

"nominee director"means an individual or legalentity that routinely exercises the functions of the director in the company on behalf ofand subject to the direct or indirect instructions of the nominator,and

"nominee shareholder"means a shareholder who exercises the associated voting rights accordingto the instructions ofthe nominator or receives dividends on behalf of the

nominator.

Insert the following new paragraph immediately after paragraph (c)

• (d)a statement of the particulars in respect of
• each beneficial owner of the proposed company in accordance with section 16A of this Act.
• s.14(3) Insert the following new paragraph immediately afterparagraph (a)-
• (aa) contains information as to whether any shareholder isanomineeandthe particulars of their nominator:
• s.16(3) Insert the following new paragraph immediately after paragraph (c)-
• (d)in the case ofa nominee director,the fact that they are nominees and the particulars oftheir nominator.

New Insert the followingnew section immediately

after section l6

Statemen of particulars of beneficial owners.

16A.(1)The applicant for registration shall ensure that the requisite statement ofparticulars of the company's beneficial owners complies with subsection (2).

• (2)The statement ofparticulars of beneficial owners
• shall contain-
• (a)the required particulars of anyone who is a beneficial
• owner:and
• (b) any other matters that,on shallbe of
• incorporation. required to be entered in the company's register beneficial owners under this Act.
• Delete thewords"whichshallinclude informationrelating to beneficialownersofthe

s.93(1) company.if any".

• s.93(2)(a) Insert the words"including information on whether the member is a nominee shareholder" immediately after the word"members".

s.93(2)(b) Insert the words"or a nominee shareholder immediately after the word"member".

s.93(2)(d) Delete and substitute therefor the following new paragraph-

• (d)the date on which anyperson ceased to be amember or a nominee shareholder.

S.93A Delete and substitute therefor the following new section-

Company to 93A.(l) Every company shall

owners.

keeparegister keep aregisterof itsbeneficial of beneficial owners

• (2)A company shall enter in its register of beneficial owners, information relating to its beneficial owners: as prescribed inthe regulations.
• (3)A company shall lodge with the Registrar a copy ofits register of
• beneficialowners-
• (a)in the case of a proposed company.whensubmitting documents as provided for under section 13 of this Act; pue
• (b)inthe case ofexisting companies.within sixty days of coming into force of this section.
• (4)The Registrar may.on the application of the company or for any other reason the Registrar thinks fit, extendthe periodreferred toin

• subsection (3)(b)for a period not exceeding thirty days.
• (5)A company,other than a public listed company,shall lodge with the Registrar a copy of any amendment to itsregisterofbeneficial owners within fourteen days after making the amendment.
• (6)Notwithstanding the provisions ofsubsection(5),apublic listed company shalllodgewiththe Registrar a copy of any amendment to itsregister of beneficial owners within thirty days after making the amendment.
• (7)Every company shall keep recordsofitsbeneficialowner's information for at least tenyearsfrom the date which a person ceases to be a beneficial owner.
• (8)If a company fails to comply with the requirements of subsection (5)or subsection (6),the company, and eachofficer ofthe companyin defaultis liable topay tothe Registrar,an administrative penalty of two thousand shillings.
• (9)If the company continues to fail to comply with the requirement of subsection (8),the company,and each officer of the company in default,is liable topay to theRegistrara further administrativepenalty of one hundred shillings for each day of default.
• (10)If the companydoes not complywith subsection (3)(b),the company,and each officer of the companywho isin default.commit an

offence and on conviction are each liable to a fine not exceeding five

hundred thousand shillings.

• (l1) If.after a company or any of itsofficers is convicted ofan offence under suhsection (1o).the company continues to fail to comply with the relevant requirement,the company. andeach officer of the company who isin default,commit a further.offence on each dayonwhichthe failure continuesandon conviction areeach liable to a fine not exceeding fifty thousand shillingsfor eachsuch offence.
• (12) Notwithstanding the provisions of subsection (lo)and (1l).the Registrar may give a direction to a company that is in breach of subsection (3)(b) specifying-
• (a)the statutory requirement of which the company is in breach;
• (b) the action that the company is required to take;
• (c) that the company has to comply with thedirection within fourteen days:and
• (d) the consequence provided for under section 894 for failure tocomply with the direction
• by the Registrar.

s.104

Repeal.

New

Insert the followingnew section immediately after section 138-

Registerof nominee directors.

• 138A.(l) Every company shall keep a register of nominee directors at its registeredoffice.
• (2)Acompany shall enter in its
• register of nominee directors-
• (a)the name and address of the nominee director:
• (b) the date on which the person became a nominee director; and
• (c) the name and address of the nominee director's
• nominator.
• (3)Every company registered before the coming into effect ofthis provisionshall lodge withthe Registrar,a copy of its register of nominee directors within sixty days ofcoming intoeffectof this provision.
• (4)Acompany shall lodge with the Registrar,a copy ofany amendmenttoits register of nomineedirectors within fourteen days after making the amendment.
• (5)The register of nominee directorsshallnotbeopento inspection bymembersofthe public.
• (6)Ifa company fails to comply with a requirement under subsection (3)or subsection (4),the company. and each officer of the company in default is liable to pay to the Registrar,an administrative penalty of two thousand shillings.
• (7)This section shall apply to
• foreign companiesregistered in Part

New

XXXVll of this Act.

Insert the followingnew section immediately after section 243-

Conpanies

electing to have acompany secrelary ora contactperson

243A.(1)A private company with a paid-up capital ofless than five million shillings or a company limitedbyguarantee mayappointa company secretary.

• (2)A private company or company limited by guarantee not having a company secretary or a resident director shall be required
• to-
• (a) appoint a contact person who shall be a natural person with apermanent residence in Kenya:and
• (b)in the case of a company registered before the coming into effect of this provision, lodgeanoticewiththe Registrar of the said appointment,within sixty days of coming into force of this provision.
• (3)The company shall lodge
• with the Registrar for registration a notice of the appointment of the person, specifyingthe person'sname and residential addressandsuchotherparticulars (if any) as are prescribed for the purposes of this section.
• (4)The contact person shall-
• (a)keep a copy of the record relating to directorship,
• beneficial ownershipand anyother informationrequired tobe kept by the company under
• shareholding. the Act:and
• (b) make the copies available to competent authorities and
• the Registrar.
• (5)A contact person who fails to comply with the provisions of subsection(4)commitsan offence and on convictionisliable toa fine not exceeding five hundred thousand shillings.
• (6)Within fourteen days after a person who is the contact person of a registered companyhas-
• (a)died,resigned or otherwise
• ceased to be the contact person.the company shall lodge with the Registrar for registration a notice to the effect that the person has ceased to be a contact person of the company in Kenya and thatanew contact person has been appointed in their place;or
• (b) changed his or residential address in Kenya, the company shall lodge withthe Registrar for registration a notice giving
• details of the change.
• (7)If the company does not comply with subsection (2).the company,and each officer of the company whoisin default,commits anoffenceandonconviction are

each liable to a fine not exceeding

five hundred thousand shillings.

• (8)If.after a company or any of isolficer is convicted ofan offence under subsection(7).the company continues to fail to comply with the relevant requirement.the company.and each officer ofthc company who is in default.commit a further offence on each day on which the failure continues and on conviction are each liable toa fine not exceeding fiftyt thousand shillings for each such offence.
• (9) Notwithstanding the provisions of subsection (7) and (8). the Registrar may give a direction to acompany that is in breach of subsection(2)and(6)specifying-
• (a)the statutory requirement of which the company is in breach;
• (b)the action that the company
• isrequired to take;
• (c) that the company has to comply with the direction within fourteen days:and
• d) the consequences of failing to comply with the direction.
• Insert the following new paragraph
• s.706(1) immediately after paragraph (d)-
• (e)statement on whether there has been change in the register ofbeneficial owner and the date of the change.
• s.850(1) Delete the words"three years"and substitute therefor the words"seven years""

s.851

Delete the words"two years"appearing in the

marginal note and substitute therefor the words "seven years".

s.851(1) Delete the words"two years"and substitute therefor the words"seven years"

s.894 subsections

Insert the following immediately after subsection(l)-

• (lA)For purposes of subsection (l). grounds upon which the Registrar may form a reasonable belief that a company is not carrying on businessmay include-
• (a) where a company has failed to file annual returns or financial statements fora period of five years ormore;or
• (b) where a companyhas failed to comply.with the requirement to lodge acopy ofthe register of beneficialownership after being issued with a directive under section 93A.
• (IB) The Cabinet Secretary may make regulations specifying the grounds upon which a company may be considered not to be carrying on business for the purpose of this section.

Insert the following new section immediately

after section904-

Record keeping after

strike-off.

904A.Where a company is struck-offpursuant to sections 894 and897orunderanyother provision in this Act,it shall be the duty of the officers,administrator orliquidator to maintain all the company records required to be maintained by the company under

New s.975

this Act for at least seven years from the date of the strike off.

Insertthe following immediately after subsection (l)- subsection

(lA)Theprovisions ofsection 93A.with the exception of subsections(5)and (6).shall apply to foreign companiesregisteredunder

thisPart.

s.975(3) paragraph

Insert the following immediately after paragraph(g)-

• (h)astatementofparticularsofthe beneficialowners of the foreign company in accordance with section

s.986(1) Insert the following new paragraph immediately after paragraph (b)-

• 93A of the Act.

(ba)its beneficial owners.

Insert the following new section immediately

New after section992

Record keeping afler strike-off.

992A. Whereaforeign company is struck-off pursuant to sections 991 and 992,it shall be the duty of the local representative of the company or theliquidator,as the case may be,to maintain all the records required to be maintained by the company under this Act for at least six years from the date of the strike off.

New Insert the following new section immediately

after section 1006-

Daty of a 1006A.(l) A company shall d Aud keep at its registered office,or at records any other location that may be prescribed in regulations pursuant tosection 1006,all documents required to be kept under this Act in relation to the company including一

• (a)the evidenceof name reservation of the company
• (b)the certificate of incorporationissuedbythe Registrar;
• certificateofchangeof C name,if any:
• or
• (d) registered address addressesofthecompany:
• (e)registrationdocumentsor documentssubmittedtothe Registrar during the registration of. the company:
• articles of the company,if any:
• (g)
• the company's register of members:
• (h) the company's register of directors:
• the company's register of
• contact persons;
• the registerof nominee directors and their
• nominator,
• (k)the company's records relating to its directors service contracts:
• 1) company's records relating to directors' indemnities:

• (m) the company's register of
• company secretaries;
• (n)the records of resolutions passed by the company;
• (o)in the case ofa private company,the company's contracts relating to purchase of its own shares out of capital and documents relating 01 redemption or purchase of own shares out of capital;
• (p)the company's register of
• debenture holders;
• (q)in the case of a public
• company-
• reports made by the company to members regarding the outcome of investigations by the company into interests in its shares: and
• (ii)the company's register of interests
• disclosed:
• (r)beneficial ownership
• information;and
• (s)financial records.
• (2)Ifacompany failsto comply with a requirement of this section,the company.and each officer of the company who is in default,commit anoffence and on conviction areeach liable to a fine

Prevention of s.2 Terrorism Act,2012 (No.30of

2017)

not exceeding five hundred

thousand shillings.

(3)If,after a company or any ofits officers has been convicted of an offence under subsection (2). the company.and each officer of the company who is in default commit a further offence and on conviction are each liable to a fine not exceedingfiftythousand shillings for each such offence.

Delete the definition of"funds"and substitute therefor the following new definition-

"funds"means assets of every kind,whether corporeal or incorporeal,tangible or intangible, movable or immovable,however acquired,and legal documents or instruments in any form, including electronic or digital,evidencing title to,or interest in,such assets:

Insert the following new definitions in proper alphabetical sequence-

"Committeemeans the Counter Financing of

Terrorism Inter-Ministerial Committee established under section 40D(1)of this Act;

"proliferation acts"means manufacturing. acquiring.possessing.developing.exporting. trans-shipping, brokering. transporting. transferring,stockpiling.supplying.selling or using nuclear,ballistic,chemical,radiological or biological weapons or any other weapon capable of causing mass destruction,and their means of delivery yandrelated materialsincluding technology.goods,software,services or expertise in contravention of this Act or any intermationalobligations derived from relevant United NationsSecurity Council Resolutions:

"reportinginstitution"has the meaning assigned to it under section 2of theProceeds of New New Crime andAnti-MoneyLaunderingAct,2009:

Insert thefollowingnew sectionsimmediately after section 4-

Commission of

proliferation act.

4A.A person who,within or outside Kenya,directly or indirectly engages in aproliferation act commits an offenceand isliable, uponconviction,toimprisonment for a term not exceeding twenty years or to a fine not exceeding twenty million shillings,or to both such fine and such imprisonment

Fiaancing af proliferation act.

4B.A person who by any means, within or outside Kenya,directly or indirectly, provides financial support or solicits or collects funds intending. knowing or having reasonable grounds to believe that such funds is to be used in whole or part,to carry out a proliferation act regardless of whether such funds or part thereof were actually used to commit the act,commits an offence and is liable,upon conviction,to imprisonment for term of imprisonment not exceeding twenty years or to a fine not exceeding twenty million shillings or to both such fine and such imprisonment.

Insert the followingnew section immediately after section5-

Financingof

Iravel for

lerrewism

purposes.

5A.A person who finances the travel of an individual to a State other than that individual's State of residence or nationality for the purpose of. the perpetration, planning.orpreparation of.or

participation in,a terrorist act or the providing or receiving of terrorist training commits an offence.

s.9(2) Delete and substitute therefor the following new subsection-

• (2)For the purposes of subsection (1). support includes the provision of forged orfalsifiedtraveldocumentsor other documents,facilitation of travel,shelter, clothing,communication devices and systems.

s.24 Insertthewords"orassociateswithor professes to associate with'immediately after the words"professes to be a member of"

New Insert the followingnew sections immediately after section30F-

Prohibition from making funds available.

30G.A Kenyan national or any within Kenya shall not make available fundsor other assets, economicresources or financial or

other person or entity any other related services-

• (a)directly or indirectly, wholly or jointly、for the benefit of designated persons and entities:
• (b)for entities owned or controlled, directly 10 indirectly,bydesignated persons or entities;and
• (c)forpersons and entities acting on behalf of,orat the direction of.designated persons or entities.unless licensed, authorised or otherwise notified in

• accordance with the relevant UnitedNations Security Council resolution.
• (2)Aperson or entity who an offence,and isliable,on
• contravenes this section commits conviction-
• (a)in case of a natural person,to imprisonment for a term not
• exceeding twenty years;and
• (b)in case of a legal person.a fine not exceeding twenty million shillings.
• Penalties for legal 30H.(1)Alegal person who persons, contravenes theprovisions of sections 4.10,11,12,12B,12C. 12D,13.14,14A,21.24,27.28. 29or30Dcommitsanoffenceand is liable,on conviction,toa fine not exceeding thirty million shillings.
• (2)A legal person who contravenes any other provisions not provided under subsection (1) isliable on conviction to a fine not exceeding twenty million shillings.

S.40B Insertthefollowing

new subsection immediately after subsection (2)-

• (3)The Director of the Centre shall design andformulateaframeworkforthederadicalisation, disengagement and a risk individuals.
• s.40C Deletesubsection(l)and subsitute therefor the following new subsections-

New

• (1)All persons intending to engage in activities toprevent and counter violent extremism and radicalisation through counter messaging or public outreach,and disengagement and reintegration of radicalized individuals shall seek thewritten approvalof the Centre prior to engaging in the activities.
• (lA) In granting approval under subsection(l).the Centreshalltake intoconsiderationall relevant information,including information
• from security agencies.
• (1B) Persons approved by the Centre under sub-section(1)shall send periodic reports to the Centre on the activities conducted and such other information as the Centre may prescribe.
• (IC) TheCentre shall formulate guidelines onthe criteria for approval under sub-section (1).

Insert the followingnew sections immediately

aftersection40C-

ofTemnsmInter.committee to beknownas the

• 40D.(1)There isestablished a Counter Financing of Terrorism Inter-Ministerial Committee.
• (2)The Committee shall consistof-
• (e) Cabinet Secretary responsiblefor matters relating to internal security,who shall be the chairperson;
• (b) the Cabinet Secretary responsible for matters relating to finance:

Establishnsent of Counter Finnncing Ministerial Commiltee Functions ofthe Commitee.

• (c) the Cabinet Secretary responsible for matters relating to foreign affairs:
• (d)
• the Attorney-General:
• (e) theDirector-Generalof the National Intelligence
• Service:
• the Inspector-Generalof Police:
• (g) the Director-Generalof Immigration and Citizen Services;
• (h) the Govermorofthe
• Central Bank of Kenya; and
• the Director-General of the Financial Reporting Centre,whoshallbethe Secretary-
• (3)The Committee may co-opt such other persons whose presence, participation. knowledgeor skillsarenecessary for theproper functionsofthe Committee.
• 40E.(l)Thefunctionsofthe Committee shall be to-
• (a)implement Resolution 1267, 1373,1718 and1988. resolutions relating to the suppression ofterrorism financing pue the prevention,suppression and disruption of the proliferation of. and financing of.dealings with

• weapons of mass destruction and such other related resolutions in accordance

with this Act:

• (b)formulate and supervise the and Action Plan on Counter
• implementation of the National Strategy Financing ofTerrorism:and
• (c)perform such other functions as may be conferredon it
• by any otherwritten law.
• (2)The Committee may.in carrying out its functions,coordinate with the relevant competentpartyandanyother person for the purposes of-
• or entities for the purpose of
• (a)identifying persons designation:
• (b) examining and giving effect, upon a request byaforeign country. 01 an action initiated under the freezing mechanism of that foreign country,which is consistent with the public interest of Kenya:
• considering requests for the C de-listingofa designated entity under this Act and the regulations made thereunder,and
• (d)theperformance ofits functions under this Act.
• (3)The Committee shall,in carryingout itsobligationsunder

Powers of the Commtiee.

Establishment of

suh-commiltees.

Resolution 1267.1373,1718and 1988,the resolutions relating to the banning of travel.granting of visas and purchase of arms and relatedresolutions.co-ordinate with the relevant competent party for the purposes specified under

susbsection (2).

• 40F.(1) The Committee shall have all the powers necessary for the performance of its functions
• under this Act.
• (2)Without prejudice to the generality of paragraph (l),the Committee shall have thepowers to issue such directives, guidelines,rules or instructions as it may consider necessary for the effective implementation of these Regulations.
• (3)The Committee shall determine its own procedure for
• the conduct of its meetings and thoseofitssub-committeesunder these Regulations.
• 40G.(1)The Committeemay. from time to time,establish such sub-committees as it may consider necessary forthe effective discharge ofits functions under this Act.
• (2)The Committee may cooptinto thesub-committees established under subsection (1) such other persons whose presence. participation. knowledge or skills are necessary

Lawenforcement co-ordinating groups

Confidentiality.

forthe proper performance ofthe

functions of the Committee.

• (3)A person co-opted under
• subsection (2)may attend the meetings of the sub-committee pue participate in the deliberations but shall have no right to vote at the meeting.
• 40H.(1)The Committee shall constitute such sector specific law enforcementco-ordinating groupsasitmay consider necessary for the implementation of this Act and the Regulations made thereunder.
• (2)The Co-ordinating groups constitutedunder subsection (1) shall be drawn from the list of law enforcement institutions set out in the Schedule.
• (3)TheCommittee shall designate the chairperson of the co-ordinating group from amongst the members of the team constituted under
• subsection (1).
• (4)Each co-ordinating group constituted under subsection (1) shall be responsible for the dayto-day implementation of this Act in relation to such sector as may be specifiedbythe Committee.
• 40L.(1)Amember ofthe Committee or any other person shall not,without the consent of
• the Committee inwriting.

publish or disclose to any person other than in the course of his or her duties,the contents of any document,communication Or information which relates to.and which has come to his or her knowledge in the course of his or her duties under this Act.

• (2)Aperson who contravenes subsection (1) commits an offence.

s.42 the following

Insert new subsection immediately after subsection (3)-

• (3A)Areporting institution shall monitor any transactions.oractivitiesin relation to terrorist property and shall immediately report any suspicious or unusual transaction or activity to the Centre in the prescribed manner.

New Insert the followingnew section immediately after section 42-

Role of she Financial

Reporting Centre and sapenvisary bodies,

• 42A(1).TheFinancial Reporting Centre and supervisory bodies shall have the power to supervise and enforcethe application of preventative measures to combatthe financing of terrorism andcombatthe financing of proliferation acts

by reportinginstitutions.

• (2)For the purposes of
• this section-

"preventative measures" include

measures under Part IV

oftheProceedsof Crime and Anti-Money Laundering Act,2009:

and

"Supervisory body"has the meaning assigned under section 2of the Proceeds of Crime and Anti-Money Laundering Act,2009.

• s.44(1) Insertthe following new paragraphs immediately after paragraph (b)-
• (c)the proceeds of,or used in,or intended or allocated for use inthe financingof terrorism,terroristacts orterrorist organisations;or
• (d)propertyof corresponding value.

New following Schedule

Insert the new immediately after section 53-

SCHEDULE

(s.40H(2))

LAWENFORCEMENTCO-ORDINATING

GROUPS

• (a) Ministry of Interiorand National
• Administration;
• (b) Ministry
• ofForeignandDiaspora Affairs:
• (c)
• Asset Recovery Agency:
• (d)
• (e)
• Central Bank of Kenya;
• The National Treasury:
• (f) Office of the Attorney-General:
• (g) National Intelligence Service:
• (h) Directorate of Criminal Investigations;
• (i)Financial Reporting Centre;

• Immigration and Citizen Services;
• (k) Kenya Defence Forces:
• (D) National Police Service:
• (m) )Kenya Maritime Authority:
• (n) Capital Markets Authority;
• (o) Insurance Regulatory Authority:
• (p)Kenya Revenue Authority:
• (b) Kenya Airports Authority:
• Non-Govermmental Organisations Coordination Board:
• (s) National Counter Terrorism Center:and
• (D) such other agency as the Cabinet Secretary may consider necessary-

MEMORANDUMOFOBJECTSANDREASONS

The Bill seeks to amend various Acts ofParliament relating to antimoney laundering.countering the financing of terrorism and countering the financing ofproliferation of weapons ofmass destruction in addressing deficiencies identified during the Mutual Evaluation ofKenya and matters incidental thereto.

The Bill seeks to amend the following laws-

The Extradition (Contiguous and Foreign Countries)Act(Cap 76)

The Bill seeks to amend the Extradition (Contiguous and Foreign Countries)Act(Cap.76)by providing for simplified extradition measures and expressely providing for the offence of terrorism financing as an extraditable offence.

The Extradition (Commonwealth Countries)Act (Cap.77)

The Bill seeks to amend the Extradition (Commonwealth Countries) Act (Cap.77) by providing for simplified extradition measures and expressely providing for the offence of terrorism financing as an extraditable offence.

The State CorporationsAct(Cap.446)

The Bill seeks to amend the State Corporations Act (Cap.446)to exclude the application of the Act to the Financial Reporting Centre therebyfacilitating theoperationalindependence ofthe Financial Reporting Centre in conformity with the Financial Action Task Force (FATF)Standards.

Capital MarketsAct (Cap.485A)

The Bill seeks to amend the Capital Markets Act (Cap.485A)to

empower the Capital Markets Authority to supervise its licensees under theAct to whom the provisions of the Proceeds of Crime and Anti-Money Laundering Act apply.

The Insurance Act (Cap 487)

The Bill seeks to amend the Insurance Act (Cap.487)to empower the Insurance Regulatory Authority (IRA) to supervise its licensees and their agents under the Insurance Act to whom theprovisions of the Proceeds of Crime and Anti-Money Laundering Act,2009,apply.The Bill also seeks to harmonise the licensing regime under the Act with the Financial Action TaskForce(FATF)Standards.

The Banking Act (Cap.488)

The Bill seeks to amend the Banking Act(Cap.488) to empower the Central Bank ofKenya to supervise institutions and agents of reporting institutionsunder the Act to whom the provisions of the Proceeds of Crime and Anti-Money Laundering Act,2009,apply.

The Central Bank ofKenya Act(Cap.491)

The Bill seeks to amend the Central BankofKenya Act (Cap.491)to empower the Central Bank of Kenya to supervise its licensees under the Act to whom the provisions of the Proceeds of Crime and Anti-Money LaunderingAct,2009.apply.

Microfinance Act,2006(No.19of2006)

The Bill seeks to amend the Microfinance Act,2006,to empower the

Central Bank ofKenya to supervise institutions licensed under the Act to whom the provisions of the Proceeds of Crime and Anti-Money LaunderingAct,2009,apply.

The Proceeds of Crime and Anti-Money Laundering Act,2009 (No.9

of2009)

The Bill seeks to amend the Proceeds of Crime and Anti-Money

Laundering Act,2009 to extend the application ofpreventative measures and enforcement measures applicable to anti-money laundering under the Act,combating terrorism financing and combating the financing of proliferation of weapons ofmass destruction.Further to this,the Bill seeks to grant supervisory bodies powers to supervise,monitor and ensure compliance with anti-money laundering,combating terrorism financing and countering the financing of proliferation ofweapons ofmass destruction measures,and to align various provisions under the Act to the Financial Action Task Force (FATF)Standards

The National Police Service Act,2011 (No.11A of2011)

The Bill seeks to amend the National Police Service Act.201l.to provide for the use ofcontrolled delivery as an investigative technique available for use by authourised officers.

The Ethics and Anti-Corruption Commission Act,2011 (No.22 of

2011)

The Bill seeks to amend the Ethics and Anti-Corruption Commission Act,201l to include the offence ofMoney Launderingunder the Proceeds of Crime and Anti-Money Laundering Act,2009 as an cconomic crime

underthe Act.

The Mutual Legal Assistance Act,2011(No.36of2011)

The Bill seeks to amend the Mutual Legal Assistance Act,2011 to expand the grounds for non-refusal ofMutual Legal Assistance.

The NationalPayment System Act,201l(No.39of2011)

The Bill seeks to amend the National Payment System Act,20ll,to empower the Central Bank ofKenya to supervise institutions and agents of institutions under the National Payment Systems Act to whom the provisions of the Proceeds of Crime and Anti-Money Laundering Act, 2009,apply.

The Limited Liability PartnershipAct (No.42of 2011)

The Bill seeks to amend the Limited Liability Partnership Act,201l, toprovide therequirement tofilea register ofbeneficialownerswith the Registrar under the Act.

ThePrevention ofTerrorism Act,2012(No.12of2012)

The Bill seeks to amend the Prevention of Terrorism Act,2012 to align it with the Financial Action TaskForce(FATF) standards.

The CompaniesAct,2015(No.17of2015)

The Bill seeks to amend the Companies Act,2015,to provide for the requirement to deliver a statement ofparticulars ofbeneficialowners to the Registrarunderthe Act:provide for the requirement for companies to keep a register of beneficial owners;and to alignvariousprovisions under the Act to the Financial Action Task Force (FATF) Standards.

Statement on the delegation oflegislative powers and limitation of fundamental rightsand freedoms

The Bill does not limit any fundamental rights or freedoms.

Statement on how theBill concernscountygovernments

The Bill does not concern county governments in terms of Article

110(l)(a)ofthe Constitution.

Statement that the Bill is a money Bill within the meaning of Article

114ofthe Constitution

The enactment of this Bill shall occasion additional expenditure of public funds tobe provided for through annual estimates.

Dated the 1lthJuly.2023.

KIMANIICHUNG'WAH, Leader ofthe Majoriry Party Schedule to Cap.76whichitisproposed to amend

SCHEDULE EXTRADITIONCRIMES

Organised Criminal Group Offences

Terrorist Offences

Any offence that constitutes a terrorist act under the Prevention of Terrorism Act,2012.

Section2ofCap.446whichitisproposedtoamend

2.Interpretation

In this Act,unless the context otherwise requires-

'state corporation"means-

• (a)a state corporation established under section 3:
• (b)a body corporate established before or after the commencement ofthisAct by or underan Act ofParliament orother written law but not-
• (i)the Permanent Secretary to the Treasury incorporated under
• the Permanent Secretary to the Treasury (Incorporation)Act (Cap.101):
• (i)a local authority established under Local Goverment Act
• (Cap.265):
• (i) co-operative society establishedunder the Co-operative Societies Act (Cap.490):
• (iv)a building society established in accordance with the
• Building Societies Act(Cap.489):
• (V) a company incorporated under the Companies Act (Cap. 486)which isnotwholly owned or controlled by the Government or by a state corporation;
• (vi) the Central Bank of Kenya established under,the Central
• Bank ofKenya Act(Cap.491):

(vii)deleted by ActNo.2of2002,Sch:

Section2of Cap.487whichit isproposed to amend

• (1)In this Act,unless the context otherwise requires-

"registrationmeans registration under this Act and includes a

renewalofregistration;

HeadingofParr illofCap.487whichitisproposedtoamend

PARTIII-REGISTRATIONOFINSURERS

Section19ofCap.487whichitisproposedtoamend

19.Only authorized persons to carry on insurance business

• (1)Except as otherwise provided in or under this Act,only a person
• registered under this Act may carry on insurance business-
• (a)in Kenya (whether in respect of Kenya insurance or reinsurance
• businessorotherwise),or
• (b)outside Kenya in respect of Kenya business,except Kenya
• business that is solely reinsurance business.

Section20of Cap.487whichitisproposedtoamend

20.Placingofrisks with insurers and reinsurers not registered under

thisAct

• (1)No insurer,broker,agent or other person shall directly or an insurer not registered under this Act without the prior approval.
• indirectly place any Kenya business other than reinsurance business with whether individually or generally.in writingof the Commissioner.
• (2)No insurer,broker,agent or other person shall directly or indirectly place any reinsurance of Kenya business with an insurer not registered under this Act exceptunder the following conditions-
• (a)in the case of treaty reinsurance,with the approval of the Commissioner to the treaty,and subject to such restrictions as he
• mayspecify:
• (b) in the case of facultative reinsurance subject to the prior approval in writing of the Commissioner to the placingofeachparticular
• risk with insurers or reinsurers not registered under this Act.

Section22ofCap.487which itisproposedtoamend-

22.Prohibition ofregistrationofcertain persons

Subject to section 23,a person may be registered as an insurer under thisAct onlyif--

• (a)the person is abodycorporate registeredunder the Companies Act,2015;and
• (b)at least one third of the controlling interest in the body (whether in terms of shares.paid up share capital or voting rights)is wholly under the controlof-
• (i) citizensofa Partner State of the East African Community;
• (i)a partnership whose partners are all citizens of a Partner Stateof theEast African Community:or
• (ili)a body corporate whose shares are wholly ownedby citizens ofa Partner State of the East African Community or the Government,or a combination of them.

Section23ofCap.487whichitisproposedtoamend

23.Minimum capital requirements and holding byKenya citizens

• (1)No person shall be registered as an insurer unless he meets the minimum capital requirements specified in the Schedule.
• (5))A registered insurer who permits hispaid up share capital to fall below the minimum prescribed under subsection (l) commits an offence andis liable on conviction to a penalty ofone hundred thousand shillings and if the offence is a continuing one,to a further fine of five thousand shillings for every day during which the offence continues.
• (6)Notwithstandingany other penalty imposed under this section,the convicted insurer shall be liable to having itsregistration cancelled.

Section25ofCap.487whichitisproposedtoamend-

25.Requirements as to capital structure and votingrights

• (1)No insurer being a company limited by shares shall be registered to carry on insurance business unless he satisfies all the following conditions-

(3) No insurer shall after the commencement of this Act be newly registered for carrying on any class of insurance business if he has issued shares other than ordinary shares of the nature specified in subsection (1).

Section26ofCap.487whichitisproposed toamend-

26.Provisions relating to carrying on of both long term and general insurance business

• (1)A person registered as an insurer under this Act shall be entitled to carry on only the class or classes ofinsurance business for which he has beenregistered.

• (2)In the case of an insurer registered to carry on both long term insurance business and general insurance business,the assets of the statutory funds established under section 45 in respect oflong term insurance business shall be as absolutely the security of the policy-holders ofthe long term insurance business as though the statutory funds belonged to an insurer carrying on no other business than long term insurance business and shall not be liable for any contracts of the insurer for which the statutory funds would not have been liable had the business of the insurer been only long term insurance business and,notwithstanding the Companies Act,shall not be applied directly or indirectly,either during the winding up or otherwise,for any purpose other than those of the long term insurance business of the insurer.

Section27ofCap.487whichitisproposed1oamend-

27.One-third of boards to be citizens ofKenya

Aperson beinga body corporate incorporated in Kenya with or without a share capital shall not be registered and if registered shall have hisregistration cancelled,if at least one third of the members of his board of directors or managingboard are not citizens of Kenya.

Section27Aof Cap.487whichitisproposed toamend-

27A.Qualifications ofboardmembers

Aperson shall not be registered under section 3l unless-

Section30ofCap.487whichit isproposed to amend

30.Application forregistration

An application for registration as an insurer shall be in the prescribed

form and shall be accompanied by-

Section30AofCap.487which itisproposed toamend

30A.Openingofabranch

• (1)An insurer registered under this Act wishing to open a branch or a new place of business inKenya,or to change the location of a branch,or an existing place of business,shall apply to the Authority for approval to doso.

Section31of Cap.487whichit isproposedtoamend-

31.Registration

• (1)Where the Board is satisfied that-

Section32ofCap.487whichitisproposed1oamend

32.Deposits

• (1)Subject to subsection (2),an insurer applying for registration under this Act shall deposit and keep deposited with the Central Bank of Kenya (in this Part called "the Bank")in Kenya Government securities estimated at themarket value of the securitieson the day of deposit-
• (a)wherethe application is in respect of long term insurance business.a sum of five million shillings or five percentum of the total assets,whichever is higher;
• (b)where the application is in respect of general insurance business, a sum of five million shillings or five percentum of the total assets,whicheverishigher:
• (c)deleted by Act No.7of2002.s.54
• (2)Where an applicant under subsection (1) was carrying on insurance business immediately prior to the appointed date he may deposit with the Bank in Kenya Government securities a sum of one hundred and fifty thousand shillings inrespect oflong term business and a sum of fifty thousand shillings in respect of general business:and if the applicant is registered he shall deposit annually thereafter further Kenya Govemment securities of the same amounts in respect of each of the two classes of business aforesaid,until the deposit reaches the value specified in subsection (l) for the class or classes ofbusiness for which the applicant is registered.

Section33ofCap.487whichitisproposedtoamend

33.Return ofdeposits ifunregistered

• (1)A deposit made under section 32 shall be returmed by the Bank if the application forregistration as an insurer isnot approved by the Board.

Section34of Cap.487whichit isproposed toamend-

34.Deposits tobekept by Bankonbehalf of insurer

Where the Board approves an application for registration under section 3l,a deposit made under section 32shall be held by the Bank on behalf of the insurer and any interest due and collected by the Bank on a deposit shall bepaid to the insurer.

Section67Aof Cap.487whichit isproposed toamend

67A.Inspection ofInsurers

• (1)The Commissioner may.at any time and from time to time,and shall,if so directed by the Minister,cause an inspection to be made by any person authorized by him in writing.of any insurer and any other person registered under this Act,and of his books,accounts and records.
• (2)When an inspection is made under subsection (I),the insurer and any other person registered under this Act,concerned and every officer and employee thereof shallproduce and make available to the person makingthe inspection all the books.accounts,records and other documents of the insurer and any other person registered under this Act, and such correspondence,statements and information relating to the insurer,and any other person registered under this Act,its business and the conduct as thereof as theperson asmaking the inspection may require and within seven days or such longer times as he may direct in writing.
• (4)The person making the inspection shall submit his report to the Commissioner.and the report shall draw attention to any breach or nonobservance of the requirements of this Act and any regulations made thereunder,any irregularity in the manner of conduct of the business of the mismanaging or lack of management skills in that insurer and any other person registered under this Act,and any other matter revealed or discovered in the course of the inspection warranting,in the opinion of the person making the inspection,remedial action or further investigation.

Section67BofCap.487whichitisproposedto amend

67B.Directions toperson inspected

The Commissioner may.by notice in writing.and after giving the insurer and any other person registered under this Act.a reasonable opportunity of being heard,require the inspected person to comply by such date or within such period as maybe specified therein,with such directions as he considers necessary in connection with any matter arising outofa report made under section 67A.

Section67CofCap.487whichitisproposedtoamend-

67C.Power of the Commissioner to intervene in management

• (1)This section applies and the powers conferred by subsection (2). may be exercised in the following circumstances-
• (d)where,having regard to the financial circumstances of the person registered,the Commissioner is satisfied that the person cannot carry on the business,or any part of the business,for which he is

registered,as the case may be,in a satisfactory and efficient manner,

Section67DofCap.487whichit isproposedtoamend

67D.Part to apply to unregistered and unauthorizedpersons

• (1)Without prejudice to the provisions contained under section 19
• the provisions of this Part shall apply to any person who,in the opinion of the Commissioner,is,or is deemed or suspected to be carrying on or transacting insurance or reinsurance business without registration,renewal ofregistration or authorisation under this Act.
• (2)Without prejudice to the provisions of this Part,a person who,
• upon inspection,is found tobe-
• (a) transacting insurance business without registration,renewal of registration or authorisation,under this Act or with persons not so registered orauthorized;or

Section68ofCap.487whichitisproposedtoamend-

68.Approved principalofficer to be appointed

• (l)For the purposes of this section registered person"means a person registered under this Act as an insurer.reinsurer,broker,agent, medicalinsurance provider,insurance surveyor,risk manager,loss assessor,loss adjuster or claims settling agent
• (2)Every registered person shall,at all times while he is so registered,have a principal officer.
• (3)The principal officer appointed under subsection (2)shall be
• ordinarily resident in Kenya and shall be responsible for the general control.direction and supervision of the Kenya insurance business of the registered person and shallrepresent theregisteredperson for the purposes ofthisAct.
• (4)Everything done by the principal officer ora person acting as the
• principal officer of the registered person in his representative capacity shall,for the purposes of this Act,be deemed to have been done by the registered person,but this subsection shall not affect any liability of the
• (5)Where the principalofficer is,or is about to be,absent from Kenya for a period exceeding three months or for any reason unable to perform his duties as principal officer,the registered person shall.if he does not revoke the appointment and appoint another person under

subsection (2)appoint another person(not being a body corporate) resident inKenya to act as theprincipal officer of the personregistered for the purposes of this Act during the absence or inability.

• (6)An appointment under this section shall be deemed not to have been duly made or revoked until the registered person hasgiven notice in writing of the appointment or revocation to the Commissioner specifying the name and,in the case of an appointment,the place of residence of the person appointed.

Section69ofCap.487whichit isproposed toamend

69.Directors,managers,employees and their remuneration

• (4)After the expiry of two years from the appointed date no agent, and where the agent is a company or firm,no managing or other director of an agent,and no broker,or managing or other director of a broker shall-
• (a)be appointed or continue as a director of an insurer registered underthis Act:
• (b)directly or indirectly acquire or hold more than one per cent of the shares or controlling interest in an insurer registered under this Act.

Section 113ofCap.487whichitisproposedtoamend-

113.Application to amalgamate or transfer

• (1) Subject to this Act,where-

2. (a)two or more insurers,registeredunder this Act,intend to 3. amalgamate:or 4. (b)an insurer intends to transfer insurance business of any class to 5. another insurer and is registered under this Act,

both the insurers jointly in the former case,and the transferor in the latter case,shall apply to the Authority.for his approval of the amalgamation or transfer,as the case may be.

Section150ofCap.487whichitisproposed toamend-

• 150.Only registered brokers,agents,risk managers,motor assesors,insurance investigator,loss adjusters,surveyors,medical insurance provider and claimssetting agents to carry on business
• (1)No person shall,after the expiry of three months from the appointed date,commence,transact or carry on in Kenya the business of a
• broker,agent,risk manager,motor assessor,insurance investigator,loss

adjuster,insurance surveyor,medical insurance provider,or claims settling agentunless he isregistered under this Act.

• (2) No person shall,after the expiry of three months from the appointed date,use the name of broker,agent,risk manager,motor assessor,insurance investigator,loss adjuster,insurance surveyor,medical insurance provider or claims settling agent in a manner to give the such business,unless he is so registered.

Section150AofCap.487whichitisproposedtoamend

150A.Registration ofmedical insurance providers

• (1)Every person engaged in the business of placing medical insurance business with an insurer in expectation of payment by way of a commission,fee.or other remuneration shall apply to the Authority for registration as a medical insuranceprovider under this Act.

Section151of Cap.487whichitisproposed1o amend

151.Application for registration

• (1)An application for registration under section I50 or renewal of registration under section 188 shall be in the form required by the Commissioner and shall beaccompanied by-
• (1A)Notwithstanding the provisions of subsection (1).a registered agent shall seek to be appointed by an insurerbefore transacting business on theirbehalf.

Section152of Cap.487whichitisproposedtoamend

152.Disqualifications

The Commissioner shall notregister or renew the registration of or keep registered any person as a broker,agent,riskmanager,loss assessor,

loss adjuster,insurance surveyor,medical insurance provider.or claims settlingagentif-

• (d)the applicant,being a broker,is a director,employee or holds more than one per cent of the shares or controlling interest in a
• registered insurer;

Section153of Cap.487whichitisproposedtoamend-

153.Registration and re-registration

• (1)Where the Commissioner issatisfied that-

• (i)it is otherwise in the public interest that the applicant
• should beregistered,

he may,subject to such terms and conditions as he considers necessary,including in the case of a broker the provision of such bank guarantee as may be prescribed,register or renew the registrationofan applicant underthisPart.

• (2)A broker shall beregistered under thisAct only ifregistered as a company under the Companies Act,20l5 and if the company has a paid up capitalof not less than one million shillings ofwhich not lessthan sixty percent isowned
• (a) by Kenya citizens;
• (b)by a partnership whose partners are all citizens ofKenya:or
• (c)by a corporate body whose shares are wholly owned by citizens ofKenya orwhichiswholly ownedbytheGovernment

This subsection is subject to subsection (3) and has effect despite any other provision of this Act to the contrary.

• (3)A broker already carrying on business as an insurance broker on the appointed date without complying with the provisions of subsection (2)relating to paid up capital may be registered as a broker,but at the time ofeach subsequent renewal of the registration until he complies fully with the requirement his registration shall not be renewed unless he has acquired after the immediately preceding registration or renewal of registration,as the case may be.paid up capital or additional paid up capital equal to not less than one-third of the deficiency which existed on theappointed date.

Section155ofCap.487whichit isproposed toamend

155.Returns

• (1)Every corporate person registered under this Part shall furnish such audited accounts,statements and retums relating to its business at such time and in such form asmay be required by the Commissioner.
• (2) If it appears to the Commissioner that any account,statement or return furnished to him under provisions of this Act is inaccurate or incomplete in any respect,he may

• (a)require further information,which shall be certified,if he so directs,by an auditor or other person,as he may consider necessary:or
• (b)require any document for hisexamination.
• (3)Where-
• (a)a person registered under this Part fails to comply with a requirement madeunder subsection(2);or
• (b)the Commissioner is not satisfied as to the truth or accuracy of any account,statement or returm supplied under subsection (1).or of any further information or document supplied under subsection (2),and has in writing so informed the person registered,giving
• his reasons,

thatperson shall be deemed to have failed to comply with subsection (1).

Section182ofCap.487whichit isproposed toamend-

182.Interpretation ofthisPart

In thisPart-

registration or alteration of registration under this Act;

"register"means a register required to be kept and maintained under

section 183:

"registered person"means a person registered under this Act as an insurer,reinsurer,broker,agent,insurance surveyor,risk manager,loss assessor,loss adjuster or claims settling agent.

Section184ofCap.487whichit isproposedto amend

184.Notification ofregisteredpersons

The Commissioner shall notify in the Gazette,within one year of the

appointed date or soon as practicable thereafter,and at intervals ofnot more than one year thereafter,the names of registered persons and the type ofbusiness in respect of which they are registered.

Section187ofCap.487whichitisproposed toamend

187.Alteration ofregistration Where aregistered person-

• (a)in accordance with this Act ceases to carry on business of the type in respect of which he isregistered;or

• (b) being an insurer,gives notice in writing to the Commissioner that he wishes to carry on insurance business of a class not previously undertaken,the Commissioner may.subject in the case of additional registration to compliance with the provisions relating thereto and to such terms and conditions as he considers
• necessary-
• (i cancel the registration,except that,in the case of an insurer, such cancellation shall be made only with the prior approval
• in writing of the Cabinet Secretary:
• (ii)alter the relevant register;
• (ii)cancel the certificate of registration;
• (iv)alter the certificate of registration;
• (v)issue a new certificate of registration,

as the circumstances require.

Section188of Cap.487whichitisproposedtoamend-

188.Expiry andrenewalofregistration

• (1) Subject to this Act,the registration of a registered person shall expire on the3lstDecember of theyear ofregistration:

Provided that where an application for its renewal is made under this section,the registration shall be deemed to continue in force until the application for the renewal is determined and the registration is renewed.

• (2)Subject to subsection (3),an application for the renewal of registration fora year shall be made on or before the 30th September of theprecedingyear in the prescribed form and shall be accompanied by the prescribed fee.
• (3)The Commissioner may extend the time for making an application
• for renewal of registration on payment of such penalty,not exceeding the prescribed fee forregistration,as he may require.
• (4)This section shall not apply to a registered person who is an insurer.

Section189ofCap.487whichitisproposed toamend

189.Issue,display and surrender of certificates

• (1)Upon the registration or renewal ofany registration,the Commissioner shall issue a certificate of registration which shall be

ofbusinessinKenya in a part thereof to which the publichave access.and a copy thereof shall be similarly displayed at each of the branchesof the registered person inKenya.

• (2) The Commissioner may.on payment of the prescribed fee,issue a duplicate certificate toreplace a certificate which has been lost,destroyed or damaged or in any case where he considersit necessary.

2. (3)Uponthe cancellation ofa registration the person who was registered shall forthwith return his certificate of registration to the Commissioner. 3. (4)Aregistered person shall not display a certificate of registration after the cancellation or expiry of theregistration in respect ofwhich it is issued.

Section 190ofCap.487whichitisproposedtoamend

190.Name ofregistered person

• (1)If the name of a registered person who has been registered is identical to a name by which another registered person has already been registered,or so nearly resembles it as to be likely to deceive.the second registered person shall,if directedin writing to do soby the Commissioner and subject to the Companies Act,2015.change his name within a time to be specified in the direction.

Section191ofCap.487whichitisproposedtoamend

191.Prohibition ofotherbusiness

• (1) No person shall be registered under this Act as an insurer, reinsurer or broker if he carries on or intends to carries on or intends to carry on inKenya any business other than the business in respect of which he applies forregistration.
• (2)No person registered under this Act as an insurer.reinsurer or broker shall carry on in Kenya any business other than the business in respect of which he is registered.
• (3)For the purposes of this section,an insurer shall not be deemed to be carrying on a business other than that in respect of which he is registered merely by reason of hishaving a subsidiary which is registered for a class of insurancebusinessfor which the insurer isnot registered:

Provided that nothing in this subsection shall allow an insurer not registered for long term insurance business to own a subsidiary registered for any class of long term insurance business.

Section 192of Cap.487whichitisproposedtoamend

192.Furtherinformation

The Commissioner mayin writingrequire an applicant for registration or renewal of registration under this Act to furmish him with such written information as he may require relating to the applicant or his business in respect of which registration or renewal thereof is sought,and the Commissioner shall not proceed with an application until that information hasbeen furnished.

Section193of Cap.487whichit isproposedtoamend-

193.Alteration in particulars furnished

(l)Whenever any circumstances arise which affect the application or the contents ofa document furmished under this Act to the Commissioner with or in support of or in connection with an application forregistration. the applicant or registered person,as the case may be,shall in writing. within seven days of those circumstances.arising,furmish full details of the circumstances to the Commissioner.

Section194of Cap.487whichitisproposed toamend

194.False or misleading statements

Aperson who makesa false or misleading statement in an application forregistration or renewal of registrationor alteration of registration.or in any document fumished under this Act to the Commissioner with or in support of or in connection with an application for registration orrenewal ofregistration,shall be guilty of an offence and liable to a fine not exceeding five thousand shillings.

Section195ofCap.487whichitisproposed toamend

195.Refusal toregister

Where the Board refuses to register an application for registration, renewalor alteration of registration.the Board shall record the reasons for its decision and shall furnish copies thereof to the applicant and the Minister.

Section196ofCap.487which itisproposed toamend

196.Cancellation ofregistration

• (1)Where a registered person requests,by notice in writing given to the Commissioner,that his registration be cancelled cither totally or in respect of any particular part of his business,the Commissioner may. subject to such terms and conditions as he considers necessary.by notice in writing,cancel the registration of the person,either totally or in respect ofany particularpart ofhisbusiness.
• (2)The Commissioner,after giving a registered person a reasonable opportunity of making representations,may by notice in writing cancel the registration of that person,either totally or in respect ofany particular part ofhisbusiness-
• (a)if the person fails to comply with or acts in contravention of this Act,or any regulation or direction made or issued under this Act;
• (b)in the case of an insurer,if the Commissioner has reason to believe that an amount due by the insurer under a judgment entered in an action inKenya arising out of a policy of insurance issued by the insurer has remained unpaid for three months after the date of the final adjudication in that action:
• (c)if the Commissioner is satisfied that the business of the person registered is not being conducted in accordance with sound insurance or business principles:
• (d)where,having regard to the financial circumstances of the person registered,the Commissioner is satisfied that the person cannot carry on the business,or a part of the business,for which he is registered,as the case may be,in a satisfactory and efficient manner,
• (e)where,having regard to the nature and quality of the staff of the registered person,including the professional qualifications, knowledge and experience of the staff,the Commissioner is satisfied that the person cannot carry on the business,or a part of the business,for which he is registered,as the case may be,in a satisfactory and efficient manner;
• (f)if the person is in liquidation:
• (g)if the business of the registered person has been transferred to or amalgamated with the business of another person without the approval of the Cabinet Secretary;

• (h) in the case of an insurer,if the business of the insurer is wholly or
• to an unreasonable extent re-insured with anotherperson:
• (i)where the Commissioner has reason to believe that the person registered has not commenced to carry on insurance business or any class of business in Kenya within the period of twelve months after he was registered;
• (j)where the Cabinet Secretary considers it is otherwise in the public
• interest and so directs the Commissioner in writing.
• (3)A cancellation of registration made by the Commissioner under subsection (2),other than paragraph (f).(g)or (i) thereof,shall take effect thirty days after the date of the notice,and after that time no insurer whose registration has been cancelled shall enter intoa new contractof insurance;but all rights and liabilities in respect of contracts of insurance entered into by him before the cancellation takes effect shall,subject to subsection (5),continue as if the cancellation had not taken place.
• (4)The Commissioner may.with the prior approval of the Cabinet Secretary.revive a registration which has been cancelled under the provisions of subsection (2).other than paragraph (f).(g)or(i) thereof,if within six months from the date on which cancellation took place the registered person concerned satisfies the Commissioner that he has complied with any requirement of this Act or any subsidiary legislation made thereunder and complies with any further directions given to him by the Commissioner.
• (5)After the expiry of six months from the date on which the cancellation of registration of an insurer has taken effect under this section,the Commissioner may,with the prior approval of the Cabinet Secretary,apply to the court for a liquidation order in respect of the insurer.
• (5A) Subsection (5)does not apply if-
• (a)the registration of the insurer has been revived under subsection (4):or
• (b)an application for a liquidation order has already been made to the court in respect of the insurer.
• (6)Where in any case referred to in subsection (1)the default or circumstances relates to one or more,but not all,of the parts of business carried on by the registered person.the Commissioner may,with the prior approval of the Cabinet Secretary,upon the cancellation of the registration

ofthe person.subject to such terms and conditions as he considers

necessary,register the person in respect of any part of the business and issue anew certificate in respect of that class of business.

Section-196AofCap.487whichitisproposed toamend-

196A.Notification ofcancellation ofregistration

The Commissioner shall,at the beginning of each calendar year,

notify in the Gazette and in at least two daily newspapers ofnational circulation,names of persons whose registration is cancelled under this Act and the type of business in respect of which the cancellation of registrationisdone.

Section197ofCap.487which it isproposedtoamend-

197.Records to be maintained by registered persons

• (1)A broker or agent registered under this Act shall keep and maintain at his principal place ofbusiness in Kenya a record of the name ofevery client.policy number.premium paid,subject-matter of insurance the date of the inception of the policy,date of renewal,sum insured and,in respect ofclaims settled by the broker on behalf of an insurer,the amount and date of claim made.the date on which the claim was paid.the amount paid,and.in the event of a claim being repudiated,the date and reasons for repudiation,and,in the event of partial settlement,the reasons therefor.
• (2)An insurer registered under this Act for carrying on general insurance business shall keep record of the name ofevery policy-holder. policy number,premium paid,subject-mater of insurance,the date of the inception of the policy.date of renewal,sum insured,the amount and date ofclaim made.the date on which the claim was paid,the amount paid. and,in the event of a claim being repudiated,the date and reasons for repudiation.and,in the event ofpartial settlement,the reasons therefor.
• (3)An insurer registered under this Act for carrying on long term insurance business shall keep and maintain the particulars referred to in subsection (2)and in addition a record of the name ofany assignee or other person having an interest in a policy,and the name of every nominee and the dates of assignment or nomination,as the case may be.
• (4)A person registered under this Act other than an insurer,broker or agent shall keep and maintain a full record of all services undertaken by him inpursuance ofhisregistration.

• (5)Every person registered under the Act shall also keep and maintain such furtherrecordsofinformation asmay beprescribed

Seetion 197Aof Cap.487whichitisproposed toamend

197A.Imposition ofInsurancePremium Levy

• (1) Subject to this Act,there shall be charged and collected a levy to be known as the insurance premium levy.which shall be paid by every insurer registered and authorized under this Act to carry on insurance business in Kenya,at such rate and in such manner as the Minister may prescribe.
• (2)The Minister may.in consultation with the Board,by Order published in the Gazette.prescribe the rates of the levy imposed under subsection (l)in respectof-
• (a)gross direct premiums written by all insurers-registered or authorized under this Act to carry on insurance business in Kenya;and

Section198ofCap.487whichitisproposedtoamend

198.Service ofnotice on registered person

• (1)A notice,direction or document issued under this Act may be served by delivering it or by sending itby registeredpost to the address mentioned in an application for registration under this Act as the principal place of business of that person or,if the Commissioner has been notified ofa change of address,to the new address.

Section204BofCap.487whichitisproposedto amend-

204B.OffencesonInsuranceFrand

• (3)An insurer,any person acting on behalf of such insurer,a person registered under the Act.garages,or any person involved in the insurance claims process,is guilty of an offence of insurance fraud where knowingly,by act or omission,with intent to injure,defraud or deceive-

Second ScheduleofCap.487which it isproposedto amend-

SECONDSCHEDULE

[Sections23and28]

MINIMUM CAPITALREOUIREMENTS

• 1.Subject to paragraph (3).no person shall be registered as an insurer unless the persons paid-up capital is-

Section2ofCap.488whichitisproposedtoamend-

2.Interpretation

• (1)In this Act,unless the context otherwise requires-

"significant shareholdermeans a person,other than the Govemment or public entity.who holds,directly or indirectly,or otherwise has a beneficial interest amounting to,five per cent or more of the share capital of an institution ora corporate entity seeking to become an institution;

Section31ofCap.488whichitisproposed toamend-

31.Publication ofinformation

• (3)Notwithstanding the provisions of this section-
• (a)the Central Bank may disclose any information referred to in subsection (2) to any monetary authority or financial regulatory authority,within or outside Kenya,where such information is reasonably required for the proper discharge of the functions of the Central Bank or the requesting monetary authority or financial regulatory authority fiscal or tax agency,fraud investigations agency:
• (b)theDeposit Protection Fund Board institutions licensed under this Act and institutions licensed under the Microfinance Act.2006 (No.19of 2006).institutions licensed under the Sacco Societies Act,2008(No.14of 2008),institutions registered under the Cooperative Societies Act (Cap.490).public utility companies and any other institution mandated to share credit information under any written law shall,in the ordinary course of business and in such manner and to such extent as the Cabinet Secretary may.in regulations,prescribe,exchange such information on nonperforming loans as may.from time to time,be specified by the
• Central Bank inguidelines under section 33(4):

Provided that the sharing of information with institutions outside Kenya shall only apply where.there is a reciprocal

arrangement:

• (c)The Central Bank and institutions licensed under this Act and institutions licensed under the Microfinance Act,2006(No.19of 2006)may.in the ordinary course ofbusiness,in such manner
• and to such extent as the Cabinet Secretary may.in regulations

prescribe,exchange such other information as is reasonably required for the proper discharge of their functions.

Section4Aof Cap.491whichitisproposedtoamend

4A.Other objectsof the Bank

• (1)Without prejudice to the generality of section 4 the Bank shall
• (a) formulate and implement foreign exchange policy;
• (b)hold and manage its foreign exchange reserves;
• (c)license and supervise authorised dealers:
• (d)formulate and implement such policies as best promote the establishment,regulation and supervision of efficient and effective payment,clearing and settlement systems:
• (da) license and supervise digital credit providers not regulated under any other written law:
• (e)act as banker and advisor to,and as fiscal agent of the Government:
• (f)issue currency notes and coins;and
• (g)license and supervise mortgage refinance companies,

Section2ofNo.3of2003which itisproposedtoamend

2.Interpretation

• (1)In this Act,unless the context otherwise requires-
• economiccrime"means-
• (a)an offenceunder section 45:or
• (b) an offence involving dishonesty under any written law providing for the maintenance or protection of the publicrevenue;

Section2ofNo.9of2009which it isproposedtoamend-

2.Interpretation

• (1) In this Act,unless the context otherwise requires-

2. "designated non-financial businesses or professions"means- 3. (a)casinos (including intermet casinos); 4. (b)real estate agencies;

• (c)dealing in precious metals:
• (d)dealinginpreciousstones:
• (e)accountants who are sole practitioners,pariners or employees within professional firms:
• (f)non-governmental organisations:
• (fa) trust and company service providers;
• (fb)advocates,notaries and other independent legal professionals who are sole practitioners,partners or employees within professional firms:
• (g)such other business or profession in which the risk of money laundering exists as the Cabinet Secretary may.on the advice of the Centre,declare:

Section12ofNo.9of2009whichitisproposedtoamend

12. Conveyance of monetary instruments to or fromKenya

• (1)Aperson intending to convey monetary instruments in excess of the amount prescribed in the Second Schedule to or from Kenya shall. before so doing.report the particulars concerning that conveyance to a person authorised by theregulations for that purpose.

Section16ofNo.9of2009which itisproposed to amend-

16.Penalties

• (3)Aperson who contravenes the provisions of section 12(3) is on conviction,liable to a fine not exceeding ten percent of the amount of the monetary instruments involved in the offence.

Section23ofNo.9of2009whichitisproposed toamend

23.Objectivesof the Centre

(1)The principal objective of the Centre isto assist in the identification of the proceeds of crime and the combating of money laundering and the financing of terrorism.

• (2)Without prejudice to subsection (1),the Centre shall-
• (a)make information collected by it available to investigating authorities,supervisory bodies and any other bodies relevant to facilitate the administration and enforcement of the laws of Kenya;

• (b)exchange information with similar bodies in other countries regardingmoney laundering activities and related offences;and
• (c)ensure compliance with intermational standards and best practice in anti-money laundering measures.

Section24ofNo.9of2009whichitisproposedtoamend

24.Functions and powers of the Centre

TheCentre-

• (a)shall receive,analyse and interpret-
• (i reports of usual orsuspicious transactionsmade byreporting institutionspursuant to section 12:
• (ii)all reports made pursuant to section 44;
• (ii)information disclosed to it pursuant to section 42 of the Prevention ofTerrorism Act,2012;and
• (iv)any additional or other information disclosed to it and obtained by it in terms of this Act.
• (b)shall send reports received under this Act to the appropriate law appropriate supervisory body for further handling if,having considered the reports,the Director-General has reasonable grounds to suspect that a transaction or activity involvesproceeds of crime,money laundering or financing of terrorism.
• (d)shall send to the appropriate law enforcement authorities,
• derived from an inspection carried out pursuant toparagraph (c) if such inspection gives the Director-General reasonable grounds to suspect that a transaction or activity involves proceeds of crime, money laundering or financingof terrorism.
• (k)may provideinformation relating to the commission ofan offence toany foreign financial intelligence unit or appropriate foreign law enforcement authority,subject to provisions of this Act and any conditions asmay be considered appropriate by the DirectorGeneral;
• (q)shall perform such other functions in relation to money laundering as the Cabinet Secretary may direct;

• (r)The Centre may request any supervisory body,monetary authority,financial regulatory authority,fiscal or tax agency,or fraud investigations agency to provide it with information where such information is reasonably required for the proper discharge ofthe functions of the Centre under this Act or for purposes of achieving the objectives of the Act;and

Section24BofNo.9of2009whichitisproposed toamend-

24B.Powers of the Centre to impose civil penalties for noncompliance

• (1)Without derogating from any criminal penalty or other sanction that may be imposed by this Act,where aperson or a reporting institution is in breach of,or fails to comply with any instruction,direction or rules issued by the Centreunder section 24A-

Section24CofNo.9of2009whichitisproposed toamend-

24C.Disclosure in writing

• (1)The Centre may for reasons disclosed in writingSection36AofNo.9of2009whichitisproposedtoamend-

36A.Responsibility for supervision ofReportingInstitutions

• (5)A supervisory body,in meeting its obligation referred to in subsection(2),may-
• (e)in making a determination in accordance with any Act applicable to it as to whether a person is fit and proper to hold office in a reporting institution,take into account any involvement,whether directly or indirectly.by that person in any non-compliance with this Act or any order.determination,instruction,directive or rule made in terms of this Act.or any involvement in any money
• launderingactivity.

Section39ofNo.9of2009whichitisproposed to amend

39.Orders to enforce compliance with obligations under thisAct

• (3)In granting the order pursuant to subsection (2),the High Court may order that should the reporting institution fail.without reasonable excuse.to comply with all or any provisions of the order.may order that institution.its officers,employees or pariners to pay a fine not exceeding one million shillings for an individual and a fine not cxcceding five million shillingsfora body corperate

Section44ofNo.9of2009whichiisproposedtoamend

44.Monitoring and Report by institutions

• (2) Upon suspicion that any of the transactions or activities described in subsection (l) or any other transaction or activity could constitute or be related to money laundering or to the proceeds of crime,a reporting institution shall report the suspicious or unusual transaction or activity to the Centre in the prescribed form immediately and,in any event,within seven days of the date the transaction or activity that is considered to be suspicious occurred,

Section44AofNo.9of2009whichitisproposedtoamend

44A.Intervention by Centre

• (1)Where the Centre,after consulting a reporting institution or a person required to make a report in terms of section 44,has reasonable grounds to suspect that a transaction or a proposed transaction may
• (a)constitute money laundering and related activities;or
• (b)involve-
• (i) the proceeds of crime or proceeds of unlawful activities or property which is connected to the proceeds of crime or unlawful activities and related activities:or
• (ii)the proceeds of,or property which is connected to an offence relating to the financing of terrorism and related activities;or
• (ii)property owned or controlled by or on behalf of,or at the direction of aperson or entity identified or designated pursuant to the Prevention of Terrorism (lmplementation of theUnitedNations Security CouncilResolutions on Suppression of Terrorism)Regulations,2013 and related activities,

the Centre may,for purposes of achieving the objectives of the Act, direct the reporting institution or person,in writing.not to proceed with the transaction or proposed transaction or any other transaction in respect ofthe funds or property affected by that transaction or proposed transaction for a period not exceeding five working days as may be determined by the Centre,in order to allow the Centre to make the necessary inquiries concerning the transaction and,where the Centre considers it appropriate.to inform and advise an investigating authority.

regulatory authority or tax agency.

Section45ofNo.9of2009whichitisproposedtoamend

45.Obligation to verify customer identity

• (1)A reporting institution shall take reasonable measures to satisfy business relationship with it or to carry out a transaction or series of transactions with it,by requiring the applicant to produce an official record reasonably capable ofestablishing the true identity of the applicant, suchas-
• (a) in the case of an individual-
• (i)a birth certificate:
• (i)a national identity card;
• (ili)a driver's licence:
• (iv)a passport;or
• (v)any other official means of identificationas may be
• prescribed:and
• (b)in the case ofa body corporate-
• (i)evidence ofregistration or incorporation:
• (i)the Actestablishing the body corporate;
• (ii)a corporate resolution authorising a person to act on behalf
• ofthe body corporate together with a copy ofthe latest annual return submitted in respect of the body corporate in accordance with the law under which it is established:and
• (iv)or any other item as may be prescribed;
• (c)in the case of a government department,a letter from the accounting officer.
• (2)Upon the coming into force of this Act,a reporting institution shall undertake customer due diligence on the existing customers or clients.
• (3) Where an applicant requests areporting institution to enter into-
• (a)a continuing businessrelationship:or
• (b) in the absence of that relationship.any transaction.

the reporting institution shall take reasonable measures to establish whether the person is actingonbehalfofanotherperson.

• (4)If it appears to a reporting institution that an applicant requesting to enter into any transaction,whether ornot in the course ofa continuing business relationship,is acting on behalf ofanother person,the reporting institution shall take reasonable measures to establish the true identity of a person onwhose behalf or for whose ultimate benefit the applicant may be acting in the proposed transaction,whether as trustee,nominee,agent or otherwise.
• (5)In determining what constitutes reasonable measures for the purposes of subsection (l)or (3),regard shall be given to all the circumstances of the case,and in particular to-
• whether the applicant isa person based or incorporated in a country in which there are in force applicable provisions to prevent the use of the financial system for the purpose of money laundering:and
• (ii)any custom or practice as may,from time to time,be current in therelevant field of business.

Section45AofNo.9of2009whichitisproposed toamend-

45A.Higherriskcountries

• (1)A reporting institution shall apply enhanced customer due diligence on business relationships and transactions with any natural and legal persons,legal arrangements or financial institutions originating from countries identified as posing a higher risk of money laundering,terrorism financing or proliferation by-
• (a)the Financial Action Task Force (FATF)as having strategic money laundering andcombating financing of terrorism deficiencies.that have not made sufficient progress in addressing the said deficiencies orhave not committed to an action plan to address the deficiencies:or
• (b)the Cabinet Secretary as having ongoing substantial money laundering and terrorism financing risks.
• (2)In addition to enhanced customer due diligence measures,a reporting institutionshall apply appropriate countermeasures,

Action Taskforce (FATF)public statement or as advised by the Cabinet Secretary.

• (3)In order to protect the financial system from the ongoing and substantial money laundering or terrorism financing risks emanating from the jurisdictions referred to under subsection (2),a reporting institution shall apply countermeasures including

Section46ofNo.9of2009whichitisproposedtoamend

46.Obligation to establish and maintain customerrecords

• (1) Subject to subsection (4),a reporting institution shall establish andmaintain-

2. (a)records of all transactions,in accordance with the requirements of subsection (3);and

Section47ofNo.9of2009whichit isproposedtoamend-

47.Obligation toestablish andmaintain internalreporting procedures

Areporting institution shall establish and maintain internal controls and internal reportingprocedures to-

• (a) identify persons to whom an employee isto report any information which comes to the employee'sattention in the course ofemployment and which gives rise to knowledge or suspicion by the employee that another person is engaged in money laundering:

Section55AofNo.9of2009which it isproposedtoamend-

55A.Asset Recovery AdvisoryBoard

• (1)There is established an advisory board to beknown as the Asset Recovery Advisory Board which shall consist of
• (a)the chairperson,who shall be appointed by the Cabinet Secretary from amongmembers of the Advisory Board appointed under paragraphs (h) to (j):
• (b)the Attomey-General;

Section55BofNo.9of2009which it isproposedtoamend-

55B.Functions of the Advisory Board

• (1)The Advisory Board shall beresponsible for-

• (a)advising and overseeing the Agency on the exercise of its powers and performance of its functions;
• (b)advising and overseeing the Agency on asset recovery policies and strategic priorities of the Agency:
• (c)advising and overseeing the Agency with respect to the administration of the Agency:

Section130BofNo.9of2009whichitisproposedto amend-

130B.Limitation ofright toprivacy

(3)A limitation of a right under subsection (l) shall apply only for the purpose of the prevention,detection,investigation and prosecution of proceeds of crime,money laundering and financing of terrorism.

Fourth Schedule toNo.9of2009whichit isproposed to amend

FOURTH SCHEDULE

[Section44(3).]

REPORTINGTHRESHOLD

Areporting institution shall file reports all cash transactions exceedingUS$ 10000 or its equivalent in any other currency carried out byit.

SectionHlofNo.22of20llwhichitisproposed to amend-

11.Additional functionsof the Commission

• (1) In addition to the functions ofthe Commission under Article252 and Chapter Six of the Constitution.the Commission shall-

2. (a)in relation toState officers- 3. (i)develop and promote standards and best practices in integrity and anti-corruption; 4. (ii) develop a code ofethics: 5. (b)work with other State and public offices in the development and promotion of standards and best practices in integrity and anticorruption; 6. (c)receive complaints on the breach of the code ofethics by public officers:

• (d)investigate and recommendtothe Director of Public Prosecutions the prosecution ofany acts of corruption,bribery or economic crimes or violation ofcodes ofethics or other matter prescribed under this Act,the Anti-Corruption and Economic Crimes Act or any other law enacted pursuant to Chapter Six of the Constitution:
• (e)recommend appropriate action to be taken against State officers or public officers alleged to have engaged in unethical conduct:
• (f)oversee the enforcement of codes ofethics prescribed for public officers:
• (g)advise,on its own initiative,any person on any matter within its functions;
• (h)raise public awareness on ethical issues and educate thepublic on the dangers of corruption and enlist and foster public support in combating corruption but with due regard to the requirements of the Anti-Corruption and Economic Crimes Act,2003 (No.3of 2003).as to confidentiality:
• (i)subject to Article 31 of the Constitution,monitor the practices and proceduresofpublic bodies to detect corrupt practices and to secure the revision ofmethods ofwork or procedures that may be conducive to corrupt practices:and
• (j)institute and conduct proceedings in court for purposes of the recovery or protection of public property.or for the freeze or confiscation ofproceedsofcorruption or related to corruption.or the payment of compensation,or other punitive and disciplinary measures including proceedings for the recovery of property or proceedsof corruption located outsideKenya.

Section43ofNo.36of2011whichitisproposedtoamend

43.Fiscaloffences

Legal assistance shall not be refused solely on the grounds that the offence amounts to an offence ofa fiscal nature or on the grounds of bank orother financial institution secrecy rules

Section17ofNo.42of20l1whichitisproposedtoamend-

• 17.Requirementsforregisteringlimited liabilitypartnerships

• (1)For an entity to be registered as a limited liability partnership under this Act,a statement that complies with subsection (2)shall be lodged with the Registrar.
• (2)A statement complies with this subsection if it is signed by each partnership and contains thefollowinginformation-
• (a)the name of that partnership;
• (b)the general nature of the proposed business of that partnership;(c) the proposed registered office of that partnership:
• (d)the name,identity document (if any).nationality.and usual place ofresidence of eachperson who willbe a partner of the partnership:(e) if any of the persons referred to in paragraph (d) isabodycorporate-
• (i)the body's corporate name:
• (ii) the body'splace of incorporation or registration;
• (i) the bodysregistration number(if any);and
• (iv) the registered office of the body to which all communications may be addressed:
• ()the name,identity document (if any),nationality and the usual place ofresidence of each person who will be amanager of the partnership and,if any such person is a body corporate-
• (i)the corporate name,place of incorporation or registration number(if any)of the body:and
• (i)theregistered officeofthe body to which all communications may be addressed:and
• (g)such other information concerning the proposed limited liability partnership as may be prescribed by the regulations.

Section29ofNo.42of2011whichitisproposedtoamend-

• 29.Limited liability partnership to lodge annual declaration of solvency or insolvency withRegistrar
• (1)A limited liability partnership shall lodge with the Registrar a declaration by one of its managers that in the opinion of the manager.the partnership either--
• (a)appears.as at that date.to-be solvent:or

• (b)does not appear,as at that date,to be solvent.
• (2)The declaration shall be lodged not later than fifteen months after the registrationof thelimited liability partnership and subsequently once in every calendar year at intervals ofnot more than fifteen months.
• (3)However.the Registrar may.on an application by a limited liability partnership,extend the period within which the declaration may belodged.
• (4)If a limited liability partnership fails to lodge the declaration within the period referred to in subsection (2).or within the extended period referred to in subsection (3),the partnership
• (a) commits an offence and is liable to a fine not exceeding one hundred thousand shillings:and
• (b)
• paragraph 3(2)(d)of the Fifth Schedule applies.
• (5)Amanager of a limited liability partnership who makes a declaration without having reasonable grounds for believing that the partnership is solvent,commitsan offence and isliable on conviction-
• (a)if the manager is a natural person,to a fine not excceding one hundred thousand shillings or to imprisonment for a term not exceeding twelve months,or to both:or
• (b)if the manager is a body corporate,to a fine not exceeding fifty thousand shillings.
• (6)A person who,in a declaration made under this section,makes a
• statement or gives information (whether directly or indirectly)toa manager that is false or misleading.when the person knows or ought reasonably to have known that the statement or information is false or misleading.commits an offence and is liable on conviction-
• (a)in the case ofa natural person,to a fine not exceeding two hundred thousand shillings or to imprisonment for a term not exceedingtwo years or to both:and
• (b)in the case of a body corporate,to a fine not exceeding two
• hundred and fifty thousand shillings.
• (7)If an offence under this section is committed with intent to defraud a creditor of the limited liability partnership or for a fraudulent purpose,the offender is liable on conviction-

• (a)if the offender is a natural person,to a fine not exceeding two hundred and fifty thousand shillings or to imprisonment for a term not exceeding three years,or to both;and
• (b)if the offender is a body corporate,to a fine not exceeding two hundred and fifty shillings.
• (8)For the purposes of this section,"solventin relation to a limited liability partnership.means the ability of thepartnership to pay its debts as they become due in the ordinary course of business.

Section34ofNo.42of2011whichitisproposed to amend-

34.Insolvency and windingup of limited partnership

• (1) Ifa limited liability partnership becomes insolvent,the Fourth Schedule shall have effect with respect to the appointment of a receiver or manager in respect of the partnership and the conduct of thereceivership ormanagement of the affairs of the partnership.
• (2)The Minister may make regulations,not inconsistent with the Fourth Schedule,providing for the insolvency and winding up of a limited liability partnership.ora foreign limited liability partnership.

Section93ofNo.17of2015whichitisproposed toamend-

93.Company tokeep registerof members

• (1)Every company shall keep a register of its members which shall include information relating to beneficial owners of the company.if any.
• (2)A company shall enter in itsregister of members-
• (a)the names and addresses of the members:
• (b)the date on which each person was registered as a member:and
• (c)deleted by AcrNo.12of2019.Sch
• (d)the name and address of the beneficial owners,if any.

Section93AofNo.17of2015whichitisproposedtoamend-

93A. Company tokeepregister ofbeneficial owners

• (1) Every company shall keep a register of itsbeneficial owners.

2. (2)A company shall enter in its register of beneficial owners. information relating to its beneficial owners as prescribed in the regulations.

• (3)A company shall lodge with the Registrar a copy of its register of beneficial owners,within thirty days after completing its preparation.
• (4)A company other than a public listed company shall lodge with the Registrar a copy of any amendment to itsregister ofbeneficial owners within fourteen days after making the amendment.
• (5)If a company fails to comply with a requirement of this section, the company,and each officer of the company who is in default,commit an offence and on conviction are each liable to a fine not exceeding five hundred thousand shillings.
• (6) If,after a company or any of itsofficers is convicted of an offence under subsection (5).the company continues to fail to comply with the relevant requirement,the company.and each officer of the company who is in default.commit a further offence on each day on which the failure continues and on conviction are each liable to a fine not exceeding fifty thousand shillings for each such offence.

Section104ofNo.17of2015whichitisproposed toamend-

104.Trustsnot to be entered on register

• (1)A company shall not accept,and shall not enter in its register of members,notice ofany trust,expressed,implied or constructive.
• (2)Ifa company contravenes subsection (1),the company,and each officer of the company who is in default,commit an offence and on conviction are each liable to a fine not exceeding five hundred thousand shillings.

Section850ofNo.17of2015whichitisproposedtoamend

850.Preservation oforiginal documents

• (1) Subject to section 854(3),the Registrar shall keep the originals of documents lodged with the Registrarin hard copy form for not less than three years after they are lodged.

Section851ofNo.17of2015whichitisproposedtoamend

• 51.Power ofRegistrar to destroyrecords ofdissolved company after lapseoftwoyears
• (1)At any time after the expiry of two years from the date on which-

• (a)a company has been dissolved;or
• (b)a foreign company has ceased to be registered as such in Kenya, the Registrar may arrange for the transfer to the Kenya National Archives and Documentation Service of the records recorded in the Register,or the Foreign Companies Register,in relation to the company.

Section2ofNo.30of2017which it isproposed toamend-

2.Interpretation

• (1)In this Act,unless the context otherwise requires-

"fundsmean assets of every kind,whether corporeal or incorporeal, tangible or intangible,movable or immovable and legal documents or instruments evidencing title to.or interest in such assets;

Section9ofNo.12of2017which it isproposed toamend-

• 9.Soliciting and giving of support to terrorist groups or for the commission ofterroristacts
• (2)For the purposes of subsection (1),support includes the provision offorgedorfalsified travelorotherdocuments.

Section24ofNo.12of2017whichitisproposedtoamend-

24.Membershipofterroristgroups

Aperson who isa member of,or professes to bea member of a terrorist group commits an offence and is liable,on conviction,to imprisonment for a term not exceeding thirtyyears.

Section40CofNo.12of2017whichitisproposedtoamend

40C.Responsibility of thepublic and government bodies

• (1)The Centre shall be an approving and reporting institution for all civil society organisations andi intermational non-govermmental radicalisation through counter-messaging or publicoutreach,and disengagement and reintegration ofradicalised individuals.