Two more global cross-border payment firms have stopped cash transfer services to and from Kenya, adding to growing pressure on the country’s financial sector amid heightened scrutiny over money laundering and illicit financial flows.

  • U.S.-based Sendwave and

  • UK-based money transfer company, Wise,

have suspended cash transfer services for most Kenyan users since August. Sendwave has attributed the disruption to technical difficulties.

They join crypto firm, Kolan (formerly HuruPay), which has frozen its Kenya operations following AML scrutiny, while U.S. payments giant, PayPal, suspended services for some Kenyan users.

 

CASE STUDY | Lessons from HuruPay’s Exit from Kenya Amid Crypto AML Scrutiny

 

Kenya has faced increased scrutiny over illicit financial flows and was added to the Financial Action Task Force’s (FATF) “grey list” of jurisdictions subject to increased monitoring for weaknesses in measures to combat money laundering and terrorist financing.

 

REALITY CHECK | Fintech Restrictions Begin to Bite as Kenya Remains on the FATF Grey-List

 

The heightened checks require international payment firms to invest heavily in transaction monitoring and other compliance measures, increasing the cost and risk of operating in affected markets.

For some providers, the growing compliance burden can make suspending or exiting services preferable to risking regulatory breaches and potentially heavy penalties.

 

CRYPTO CRIME | Kenyan Court Freezes Over $2 Million in USDT in a Binance Wallet for Money Laundering

 

 

 

 

 

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