- From Friday, the Financial Reporting Centre (FRC) will begin auditing licences of gold, silver, and diamond traders.
- Dealers not registered with FRC risk suspension until they comply with new legal rules.
- Kenya aims to fix loopholes that led to its FATF grey-listing and improve its global financial credibility.
Mass Review of Licences Begins
The Financial Reporting Centre is taking a bold step to clean up the precious metals trade in Kenya. Starting Friday, FRC will launch a major review targeting gold, silver, and diamond dealers who have failed to register with the agency. Those found non-compliant will be forced to halt operations until they meet all new requirements.
This move is part of Kenya’s effort to fix gaps that got the country grey-listed by the Financial Action Task Force (FATF) in 2023.
Focus on Money Laundering Loopholes
According to FRC Director General Saitoti Maika, the crackdown aims to disrupt cartels using the metals trade to clean dirty money.
“Precious minerals have become a channel for illicit finance—through forged invoices, manipulated pricing, and avoiding taxes,” he explained.
Traders will now have to play by stricter rules, ensuring transparency in every transaction and client identity.
What Dealers Are Now Required to Do
Under the new guidelines, all cash transactions over $15,000 must be reported. In addition, traders must keep detailed customer records, including full names, IDs, ownership structure, and financial documents.
Some of the documents required include: Certificate of incorporation, KRA PIN, Mining licence, Group ownership details, Passport copies for foreign shareholders, A full statistical disclosure form
These changes place dealers under the same financial scrutiny as banks and SACCOs.
The Bigger Picture: Kenya’s Reputation on the Line
Kenya’s grey-listing status has already shaken investor confidence, making cross-border transactions more difficult. The government hopes these reforms will plug the regulatory holes and demonstrate its seriousness to international financial partners.
The proposed changes will align with amendments to the Proceeds of Crime and Anti-Money Laundering Act, strengthening oversight in sectors often overlooked.
Regional Threats and the Need for Action
Regulatory blind spots have also been spotted in neighboring countries, raising fears of a wider threat in the region. Kenya’s bold action could serve as a model for others facing similar risks.
As the clean-up continues, authorities believe strict enforcement will not only restore Kenya’s image globally but also protect its economy from being a soft target for financial crime networks.
