In 2011, FSVC was awarded a grant from the U.S. Department of State’s Bureau of Counterterrorism to implement a technical assistance program to train public and private sector professionals in Kenya, Tanzania and Uganda to counter the financing of terrorism. FSVC has been a key partner to regulatory authorities, financial institutions and commercial businesses in these countries, and has helped them strengthen their capacity to identify, report and deter money laundering and the financing of terrorism.
The objective of this program is to assist three countries in the East African region – – Kenya, Tanzania, and Uganda – – in developing their capacity to combat money laundering and terrorist financing in accordance with international best practices and standards. The program’s demand-driven approach allowed FSVC to respond quickly and efficiently to the changing needs of local counterparts to provide targeted training and consultations. By developing close relationships with these organizations and businesses, FSVC was able to develop and implement timely, effective and successful programming that met the immediate needs in these countries, while still achieving the goals of the program. FSVC has to date implemented 26 projects with the Central Bank of Kenya (CBK), the Bank of Tanzania (BOT), the Bank of Uganda (BoU), Financial Intelligence Units (FIUs) representing the three countries, commercial banks, and designated non-financial businesses and professions (DNFBPs).
As a result of FSVC’s assistance, regulators, financial institutions and designated non-financial businesses and professions (DNFBPs) in Kenya, Tanzania and Uganda have made great strides in the fight against money laundering and terrorist financing. These efforts have led Kenya and Tanzania to improve their standings with the Financial Action Task Force (FATF), and Uganda has made significant progress in developing a stronger AML/CFT framework and regime. Key successes of this program are:
- FSVC assistance was critical in the establishment and development of Kenya’s FIU, the FRC. FSVC volunteer experts worked on the ground in Kenya to build support for the creation of the new FRC. Once the establishment of the FRC was approved, FSVC helped the new FRC team design its organizational structure and initial job descriptions; create a mission statement, objectives and functions; and source talent from other Kenyan regulatory agencies.
- FSVC helped the CBK Supervision Department establish, train and develop regulations for the inspection teams, which are now conducting AML/CFT inspections of reporting entities. Supported by FSVC’s technical assistance, the CBK now has well trained teams of inspectors to conduct AML inspections across its reporting entities.
- FSVC helped the Tanzanian FIU create a new inspection manual and improve its ability to conduct effective AML/CFT inspections of reporting entities.
- FSVC provided critical and timely assistance to Uganda’s new FIU, the Financial Intelligence Authority (FIA), to help it become operational
- FSVC assistance provided critically needed capacity-building to the supervision department of the BoU