The government has issued a directive requiring all dealers in precious metals and stones to register with the Financial Reporting Centre (FRC) by April 11, 2025, or risk legal action.  

In a notice posted on X by the Ministry of Mining, Blue Economy and Maritime Affairs on March 22, 2025, the FRC stated that the move is aimed at strengthening oversight of the sector in line with the Proceeds of Crime and Anti-Money Laundering Act, 2009 (POCAMLA).

The Centre, which plays a key role in combating money laundering, terrorism financing, and financial crimes, emphasized that dealers in the sector are considered reporting institutions under the law and are therefore subject to anti-money laundering and counter-terrorism financing regulations.

“The Centre has commenced Anti-Money Laundering, Countering the Financing of Terrorism and Countering Proliferation Financing (AML/CFT/CPF) supervision for the sector and hereby requires all licensed Dealers in precious metals and Dealers in precious stones (DPMS) to register with the Centre to ensure compliance with the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA) on or before 11 April 2025,” the statement read.

According to FRC, the registration requirement applies to miners, producers of precious metals or precious stones at mining operations, buyers, brokers, precious stone cutters, polishers and precious metal refiners, jewelry manufacturers who use precious metals and precious stones, retail sellers to the public, and buyers and sellers in the secondary and scrap markets.

To streamline the process, the registration process will be conducted online through the goAML platform.

Businesses must submit several documents, including a completed Form FRC RF 1-1, certified copies of their Certificate of Incorporation, KRA PIN, organization CR12, license from the State Department of Mining, organizational structure, and details of ultimate beneficial owners.

The FRC warned that failure to comply with the directive will result in legal consequences under Section 47A (5) of POCAMLA.

“Take note that failure to register with the FRC constitutes an offence, and the Centre will proceed to take necessary action,” the statement warned. 

Attention:
All Dealers in Precious Metals and Dealers in Precious Stones. pic.twitter.com/dQkYEHJUBI

— Mining ,Blue Economy and Maritime Affairs (@MiBeMa_2022) March 22, 2025

Crackdown on illegal mining

This directive comes as Mining and Blue Economy Cabinet Secretary Hassan Joho recently intensified efforts to crack down on illegal mining activities, particularly in the Nyanza region.

Speaking in Siaya on January 30, 2025, Joho expressed concern over the rising number of illegal miners using heavy machinery without consulting local communities.

He stressed that such activities are not only unlawful but also exploitative, robbing the region of its rightful economic benefits.

“We are witnessing a lot of illegal mining in the Nyanza region. Some people are coming in with large machines, extracting resources without permits, and failing to pay taxes. This must stop,” Joho said.

Joho urged local chiefs to be more vigilant and report illegal mining activities to authorities.

“It is the responsibility of chiefs to monitor activities on the ground. If someone is exploiting our resources illegally, they must be reported and arrested immediately,” he added.

According to the CS, illegal mining operations have deprived communities of much-needed development funds.

Under the law, one per cent of mining proceeds are supposed to be reinvested in local projects such as schools, hospitals, and infrastructure, a contribution that illegal miners often evade.

“If we manage our mining resources well, we can transform communities. We must ensure that mining benefits are reinvested into development projects for future generations,” Joho said.

Joho called on illegal miners to follow due process, including consulting local communities and reaching formal agreements before engaging in any mining activities.

“Anyone seeking to mine in Siaya must first engage with the community and agree on terms that guarantee a fair share of the proceeds for local development,” he emphasized.