Kenya Invited to Join FATF Working Groups for One Year Amid Crypto Regulation Progress

In a significant boost for its ongoing efforts to exit the Financial Action Task Force (FATF) grey list, Kenya has been selected to participate as a guest member in FATF’s global working groups and plenary meetings for a full year. This prestigious invitation marks Kenya’s first inclusion as a guest non-member from the East and Southern Africa Anti-Money Laundering Group (ESAAMLG), underscoring the country’s commitment to strengthening its anti-money laundering, counter-terrorism financing, and proliferation financing (AML/CFT/PF) frameworks.

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A Historic Milestone for Kenya

The FATF’s inaugural guest initiative is designed to offer countries from the watchdog’s regional bodies the opportunity to join key discussions and actively engage in shaping global AML/CFT/PF policies. Kenya, along with the Cayman Islands and Senegal, has been granted this unique opportunity. As part of this initiative, a Kenyan delegation is currently attending a 5-day FATF plenary session in Paris, France, which commenced on February 17, 2025. The participation of Kenya’s delegates is not only a reflection of the country’s progress but also serves as a platform to represent the voices of other ESAAMLG members that are not directly involved in FATF meetings.

Defending Progress and Articulating a Vision

Financial Reporting Centre Director-General, Saitoti Maika, emphasized the importance of this development. “The Kenyan delegation will be defending the country’s progress to exit the grey list and similarly ensure that the country’s position is articulated at this important meeting while representing the voices of other countries in the ESAAMLG region that are not directly able to participate in FATF meetings,” Maika stated. This sentiment highlights Kenya’s proactive stance in addressing deficiencies identified in its mutual evaluation report and its drive to align with international standards.

Enhancing Regulatory Frameworks

Kenya’s inclusion comes at a crucial time. The nation was placed on the FATF grey list in February 2025, alongside other jurisdictions from the ESAAMLG region such as Angola, South Sudan, Tanzania, Mozambique, Namibia, and South Africa. These countries are under heightened scrutiny due to concerns over illicit financial flows and weaknesses in their financial regulatory frameworks. By participating in FATF’s working groups, Kenya is not only reinforcing its commitment to implementing robust AML/CFT/PF measures but is also taking a significant step towards regaining international trust and credibility.

“This invitation is a clear demonstration of the FATF’s confidence in Kenya’s efforts to address the deficiencies identified in its mutual evaluation report so that it can exit the FATF grey list in the shortest time possible,” added Maika. The collaborative nature of the FATF initiative will enable Kenya to share best practices, engage with global experts, and learn from the experiences of other nations, accelerating its journey toward full compliance with international financial standards.

Implications for the Crypto and Financial Sectors

Kenya’s progressive steps in enhancing its regulatory environment come at a time when the global crypto industry is under increasing pressure to adhere to stringent AML/CFT/PF norms. The country’s active participation in FATF meetings is expected to foster a more secure and transparent financial ecosystem, which is crucial for sustainable economic growth. For the crypto sector, this development offers a dual benefit: it not only helps mitigate risks associated with illicit financial activities but also boosts investor confidence by demonstrating a commitment to regulatory rigor.

As FATF continues to refine its global standards, Kenya’s role as a guest member will serve as a valuable case study for other emerging economies seeking to balance innovation with robust regulatory oversight. By integrating global best practices into its domestic policies, Kenya is poised to become a regional leader in digital financial regulation, setting a benchmark for countries in the ESAAMLG region and beyond.

Looking Ahead

The year-long invitation to participate in FATF’s global working groups represents a strategic opportunity for Kenya to accelerate its regulatory reforms and enhance its international standing. As the FATF plenary sessions progress, stakeholders in Kenya’s financial and crypto sectors will be watching closely, hopeful that these efforts will lead to a timely exit from the grey list and foster a more resilient economic environment.