Kenya: Virtual Asset Service Providers Bill 2025 including user identification requirement was introduced to National Assembly

On 8 April 2025, the Virtual Asset Service Providers Bill 2025 was introduced to the National Assembly. Under Part V of the Bill, all virtual asset service providers would be required to comply with the full range of anti-money laundering and counter terrorism finance (AML/CTF) preventive measures, including targeted financial sanctions obligations and customer identification and due diligence requirements. Virtual asset service providers would be required to identify, assess and mitigate money laundering and terrorism financing risks in connection with the conduct of virtual asset services and the promotion of virtual asset offerings. The Capital Markets Authority and the Central Bank of Kenya would be empowered to vet significant shareholders, beneficial owners, directors and senior officers of virtual asset service providers, conduct onsite inspections and offsite surveillance, compel the production of documents, and impose monetary, civil or administrative sanctions for AML/CTF violations. The relevant regulatory authorities would further be empowered to issue regulations, guidelines, directions, rules or instructions for AML/CTF purposes and to cooperate and share information with other supervisory and investigating authorities. A person who violates AML/CTF obligations would commit a criminal offence and be liable, upon conviction, to a fine not exceeding KES 10 million or imprisonment for a term not exceeding five years, or both, in the case of an individual, and to a fine not exceeding KES 25 million in the case of a company.