AML / KYC POLICY

1. Purpose of the Policy

This policy outlines PESAKAY CREDIT LIMITED's commitment to preventing its services from being used for money laundering, terrorism financing, fraud, or other financial crimes. It ensures compliance with:

Proceeds of Crime and Anti-Money Laundering Act (2009)
The Prevention of Terrorism Act (2012)
Central Bank of Kenya AML/CFT Guidelines
FATF (Financial Action Task Force) Recommendations

Key objectives:

Ensure transparent and lawful operations
Protect the company's and clients' reputations
Meet reporting obligations to the Financial Reporting Centre (FRC Kenya)
Integrate AML/CFT protocols with Data Protection Act 2019

2. Customer Due Diligence (CDD)

Before onboarding any customer (individual or entity), we perform CDD to verify identity, legal status, and risk profile.

For individuals (natural persons):

Full legal name
National ID (Huduma Namba) or valid passport
Date of birth
Mobile phone number (linked to M-Pesa)
Residential address (with proof: utility bill or lease)
Source of income/employment details

For legal entities (companies):

Certificate of Incorporation
CR12 form (list of shareholders/directors)
KRA PIN Certificate
IDs of directors or authorized signatories
Board Resolution approving borrowing
Proof of business address
Recent bank statements (3–6 months)
Business permit or license

3. Enhanced Due Diligence (EDD)

Applied to high-risk scenarios, including:

Politically Exposed Persons (PEPs)
Large or unusual transactions
Cross-border transfers
Suspicious customer behavior

EDD measures may include:

Additional source of funds verification
Periodic review of high-risk clients
Continuous monitoring throughout the relationship

4. Ongoing Monitoring

All customer accounts and transactions are monitored for unusual or suspicious activity (e.g., structuring, smurfing, unexplained fund flows).
Suspicious activity triggers internal review and, where required, reporting to FRC Kenya as a Suspicious Transaction Report (STR).
Monitoring is risk-based and ongoing throughout the customer relationship.

5. Record Keeping

All KYC and transaction records are retained for at least 7 years after the end of the business relationship or transaction date (POCAMLA Section 45).
Records must be readily retrievable for regulatory audits and internal investigations.

6. Staff Training

Regular training programs for employees on:

AML/CFT laws and procedures
Red flag indicators
Confidentiality and reporting requirements

Frequency: Upon onboarding and annually thereafter.

7. Sanctions Screening

Customers and counterparties are screened against:

UN, EU, and OFAC sanctions lists
Local CBK watchlists (as applicable)

Screening occurs:

Prior to onboarding
Periodically throughout the relationship

Note: No business is conducted with sanctioned/high-risk individuals or entities.

8. Responsibilities

Board of Directors: Oversight of the AML/KYC framework

Compliance Officer / MLRO: Policy enforcement, reporting, and regulator liaison

All Employees: Duty to report red flags and assist in investigations

9. Reporting to Authorities

PESAKAY CREDIT LIMITED fulfills legal reporting obligations to FRC Kenya, including:

Suspicious Transaction Reports (STRs)
Cash Transaction Reports (CTRs)
Other threshold-based reports

FRC Website: https://www.frc.go.ke

Timeline: Reports are typically submitted within 7 days of detection.

10. Review and Updates

This policy is reviewed annually or upon significant regulatory changes.
Updates are approved by senior management and shared with all staff.
The current version is always available on the company website.

11. Contact for AML/KYC Matters

Compliance Officer:

Address: P.O BOX 30834, 00100 – G.P.O, Nairobi, Kenya

Email: hello@pesakay.co.ke

Phone: +254 XXX XXX XXX