Financial Crime World

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Anti-Money Laundering Regulations: Trusts and Identification

Tanzania’s Anti-Money Laundering Regulations have introduced new rules governing trusts and identification, aimed at preventing money laundering and the financing of terrorism.

Verification of Trust Information

According to Regulation 16, a reporting person must verify trust information by comparing particulars obtained with those contained in the trust deed or other founding instruments. This includes verifying:

  • Names
  • Addresses
  • Tax Identification Numbers (TINs) against documents issued by relevant authorities such as the Tanzania Revenue Authority.

Death or Non-Existence of Individuals, Entities, Partnerships, or Trusts

In cases where an individual, entity, partnership, or trust dies or ceases to exist, a reporting person must verify particulars by comparing them with information obtained from practical means and taking into account any relevant guidelines.

General Rules on Identification

Regulation 17 sets out general rules on identification for reporting persons. These include:

  • Requiring satisfactory evidence of identity before establishing a business relationship
  • Taking into account suspicions of money laundering or terrorism financing when dealing with prospective customers who are not physically present
  • Ensuring that the business relationship is not continued if satisfactory evidence of identity cannot be obtained
  • Identifying third parties acting on behalf of customers
  • Allowing reporting persons to obtain information on the purpose and intended nature of a business relationship
  • Conducting ongoing due diligence by scrutinizing transactions throughout the course of the business relationship

Maintenance of Correctness of Particulars

Regulation 18 requires reporting persons to take reasonable steps to maintain the correctness of particulars as provided under the Regulations, taking into account relevant guidelines.

Reporting Suspicious Transactions and Currency Transactions

Reporting persons must report suspicious transactions and currency transactions in accordance with Regulation 19. The manner of reporting is prescribed by the Financial Intelligence Unit (FIU) in its Guidelines.

Contact Information for Trustees and Beneficiaries

Reporting persons are required to maintain contact information for trustees and beneficiaries, including:

  • Telephone numbers
  • Fax numbers
  • Residential postal addresses
  • Email addresses

For trusts, this includes:

  • The founder of the trust
  • Each individual who purports to be authorized to establish a business relationship or enter into a transaction with the reporting person on behalf of the trust

Contact Information for Trustees

Reporting persons are required to maintain contact information for trustees, including:

  • Telephone numbers
  • Fax numbers
  • Residential postal addresses
  • Email addresses

This includes each trustee of the trust and each individual who purports to be authorized to establish a business relationship or enter into a transaction with the reporting person on behalf of the trust.

Contact Information for Beneficiaries

Reporting persons are required to maintain contact information for beneficiaries, including:

  • Telephone numbers
  • Fax numbers
  • Residential postal addresses
  • Email addresses

This includes each beneficiary of the trust referred to by name in the trust deed or other founding instrument establishing the trust.