In a decisive move to bolster anti-money laundering efforts and enhance corporate transparency, Kenya’s Business Registration Service (BRS) has mandated all private limited companies and limited liability partnerships (LLPs) to comply with new directives on disclosing beneficial ownership information.

Under the Registrar of Companies Directive, non-compliance could lead to severe penalties, including hefty fines and possible deregistration.

The BRS now requires entities to file accurate, up-to-date information on individuals holding significant ownership or control within their structures.

"The Service is mandated to comply with the collection and maintenance of accurate, adequate, and up-to-date basic and beneficial ownership information," the notice emphasised, aligning with global standards on combating financial crimes, including money laundering and terrorism financing.

Entities have been given strict deadlines to fulfil this requirement.

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All private limited companies must submit the relevant information by the end of November, while the compliance timeline for LLPs will be disclosed at a later date.

The Registrar of Companies urged entities to adhere to these deadlines, warning, "Failure to comply with the requirement to keep and file with the Registrar a copy of the register of beneficial owners for a period exceeding one year attracts a penalty of Sh 500,000 and a further offence each day the failure continues attracts a penalty of not exceeding Sh50,000."

The Registrar also cautioned companies and LLPs to ensure that they maintain a current register of beneficial ownership at their registered offices and update it within 14 days of any changes.

"Take note that non-compliant companies and LLPs shall be struck off the register in accordance with Section 894 of the Companies Act and 33A of the Limited Liability Partnerships Act."

Kenya’s push for enhanced corporate transparency is part of a larger initiative to align with international financial regulations.

By enforcing these requirements, BRS aims to build a robust framework that not only supports Kenya’s economic development but also deters illicit financial activities within the region.