Kenya: CRS implementing regulations effective 1 January 2023
Regulations guiding the implementation of the common reporting standard in Kenya
Regulations guiding the implementation of the common reporting standard in Kenya
The Cabinet Secretary for the National Treasury issued regulations (through Legal Notice No. 8 of 2023 dated 7 February 2023) guiding the implementation of the common reporting standard (CRS) in Kenya—effective 1 January 2023.
Under the regulations, reporting financial institutions are required to identify reportable accounts and file with the Kenya Revenue Authority the following information:
- An information return on reportable accounts held, managed or administered by that reporting financial institution. A reportable account refers to the financial account maintained by the financial institution. A reportable account comprises the pre-existing accounts and the new accounts. The new accounts refer to a financial account maintained by a reporting financial institution opened on or after 1 January 2023 whereas a pre-existing account means a financial account maintained by a reporting financial institution as of 31 December 2022.
- A return marked “nil” if no account held, managed or administered by that reporting financial institution is identified as a reportable account.
Pre-existing individual accounts are categorized into lower-value (aggregate value does not exceed USD 1,000,000 as of 31 December) or high-value (aggregate value exceeds USD 1,000,000 as of 31 December) accounts. The due diligence requirements to be applied by reporting financial institutions depend on the classification of the accounts. Enhanced procedures apply with respect to high-value accounts including a review of electronically searchable databases, a review of the current customer master file and review of the following information received within the prior five years:
- Most recent documentary evidence collected with respect to the account
- Most recent account opening documentation
- Documentation on anti-money laundering/know your customer (AML/KYC) procedures
- Current power of attorney or signature authority forms
- Current standing instructions to transfer funds
Review of pre-existing high-value accounts must be completed by 31 December 2022, and review of lower-value accounts must be completed by the 31 December 2023.
Read a February 2023 report [PDF 553 KB] prepared by the KPMG member firm in Kenya
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