Are You a Reporting Institution? What You Need to Know About Kenya’s Anti-Money Laundering (AML) Rules

The rules for doing business in Kenya are changing. If you handle money for other people, you are likely what the law calls a Reporting Institution. This comes with serious legal duties under Section 2 of the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA).

Recent changes, specifically the AML amendment act 2025, have pushed compliance to the top of the priority list for thousands of businesses. With the March 2026 deadline for full compliance approaching, staying ahead of the law is the only way to protect your business from heavy fines and reputational hits.

Who Exactly Are Reporting Institutions?

According to POCAMLA, reporting institutions fall into two main groups: Financial Institutions and Designated Non-Financial Businesses and Professions (DNFBPs).

1. Financial Institutions

These are supervised by bodies like the Central Bank of Kenya (CBK), SASRA, and the CMA. They include:

  • Commercial Banks and Microfinance Institutions.
  • Forex Bureaus and Money Remittance providers.
  • Digital Credit Providers and Payment Service Providers.
  • SACCOs (both deposit-taking and non-withdrawable).
  • Stock Brokers, Investment Banks, and Fund Managers.
  • Insurance Providers and Agents.

2. Designated Non-Financial Businesses and Professions (DNFBPs)

This group includes professionals who might not think of themselves as “financial” but still handle significant wealth:

  • Real Estate Agencies: Supervised by the Estate Agents Registration Board.
  • Lawyers and Notaries: Supervised by the Law Society of Kenya (LSK).
  • Accountants: Supervised by ICPAK.
  • Casinos and Betting Companies: Supervised by the Betting Control and Licensing Board.
  • Dealers in Precious Metals and Stones.

Regardless of your specific sector, the Financial Reporting Centre (FRC) is the overall supervisor making sure everyone follows the rules.

What the AML Amendment Act 2025 Changes for You

The AML amendment act 2025 was signed into law to fix gaps identified by global watchdogs like the FATF. Here is what it means for your daily operations:

  • Stricter KYC: You must verify the identity of every client and, more importantly, the Beneficial Owners (the real people behind a company).
  • PEP Screening: You are now required to identify Politically Exposed Persons (PEPs) and apply extra checks to their transactions.
  • Real-Time Reporting: You must detect and report suspicious activities to the FRC faster than before.
  • Heavier Penalties: Fines for missing a check can now reach 30,000,000 KES, and individuals can face prison time.

How Peleza Supports Your Compliance Journey to Kenya’s Anti-Money Laundering (AML) Rules

Checking every client manually is slow and prone to human error. Peleza takes that weight off your shoulders. We provide data you can rely on because we get it directly from primary sources.

For Banks and SACCOs

Automate your Customer Due Diligence (CDD). Our system checks national IDs, alien IDs, passports, AML and PEPs in seconds, ensuring you onboard real people, risk free.

For Real Estate and Law Firms

Screen buyers and sellers against global Sanctions and PEP lists. You can confirm if a client is on a “bad list” before any money changes hands.

For Accountants and Casinos

Maintain a clear audit trail. Our platform logs every check you run, making it easy to show the FRC that you are following the law.

Expert Tip: Compliance isn’t just about avoiding fines. It’s about building trust. When your partners know you use verified data, they feel safer doing business with you.

Automated API: Compliance at Scale

If you run a digital platform like a fintech or a betting site, you can’t stop to run manual checks. Our automated, API-ready solution integrates directly into your existing workflow.

When a user signs up on your app, our API runs the AML and KYC checks in the background. You get a “Pass” or “Fail” result instantly. This keeps your user experience fast while keeping your business safe.

  • Fast Integration: Get up and running in days, not months.

  • Real-Time Data: No outdated lists. You get live hits from primary sources.

  • Global Reach: Screen clients across 40+ countries in Africa and beyond.

Take Action Today

Don’t wait for a regulator’s audit to find out your compliance has gaps.

Ready to see it in action? Book an AML Demo with our team

Want to try the tool yourself? Test our AML solution today

Need more on identity verification? Read about Peleza KYC solutions here