At FinSafe Consulting Ltd, we recently partnered with a Tier 2 SACCO to conduct an independent AML/CFT audit and capacity-building program. The goal? To help the institution align with regulatory expectations under the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA) and the Financial Reporting Centre (FRC) guidelines.
💭 Why Conduct an Independent AML/CFT Audit?
Many SACCOs were only recently designated as reporting institutions, which means regulators such as the FRC, SASRA, and professional bodies like the Institute of Certified Public Accountants of Kenya (ICPAK) now expect them to have structured AML/CFT programs.
An independent audit helps SACCOs to:
- Identify control gaps in their AML/CFT systems before regulators do
- Assess governance effectiveness, including board oversight and MLRO accountability
- Build confidence in readiness for upcoming FRC or SASRA inspections
- Demonstrate compliance to members, partners, and auditors
This Tier 2 SACCO recognized the need to get ahead of regulatory expectations and engaged FinSafe Consulting to guide the process.
📋 Our Approach
Our consultants carried out a comprehensive independent AML audit that covered:
- Review of AML/CFT policies, procedures, and risk assessments
- Evaluation of customer onboarding, KYC, and enhanced due diligence (EDD)
- Testing the reporting process for suspicious transactions (STRs)
- Assessment of record-keeping, governance, and compliance structures
👩🏽💼 Training, Coaching, and Continuous Support
As part of the engagement, FinSafe Consultants spent one week on-site delivering hands-on training and coaching sessions that included:
✅ Scenario-based coaching for the MLRO (Money Laundering Reporting Officer) — focusing on practical case studies, red flag identification, and escalation workflows.
✅ Staff-wide AML/CFT awareness sessions tailored for front-office, operations, and management staff to strengthen day-to-day vigilance.
✅ Development of a customized AML training calendar to ensure continuous learning throughout the year — provided as a bonus deliverable to sustain progress.
Our aim was not just to audit, but to equip the SACCO’s team with lasting capacity to manage AML/CFT compliance confidently.
💡 Outcome and Impact
After the engagement, the SACCO achieved:
- Clearer understanding of AML/CFT responsibilities at all levels
- Stronger board and management oversight on compliance issues
- Improved internal controls and documentation for regulator review
- A structured plan for ongoing training and compliance monitoring
“The FinSafe Consulting team brought both expertise and practicality. The scenarios and examples helped our team grasp AML risks better, and the training calendar ensures we stay on track. We now feel ready for regulatory reviews.”
— Compliance Officer, Tier 2 SACCO
🌟 Why This Matters
As Kenya’s regulatory environment evolves, SACCOs face growing pressure to implement effective AML/CFT frameworks — not just to comply, but to protect members’ funds and institutional reputation.
At FinSafe Consulting, we specialize in helping SACCOs and financial institutions establish, test, and strengthen their compliance systems.
🤝 Partner With Us
If your SACCO or institution needs help with:
- Independent AML/CFT audits
- MLRO and staff training
- Policy development or regulator readiness reviews
👉 Reach out to FinSafe Consulting Ltd for a consultative session today.
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