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Tanzania’s Banking Sector Embraces Anti-Money Laundering Guidelines

Dar es Salaam, Tanzania - The Financial Intelligence Unit (FIU) of Tanzania has issued guidelines for the banking sector to ensure compliance with anti-money laundering and combating the financing of terrorism regulations.

Background

The guidelines, known as “Anti-Money Laundering Guidelines for Bank of Tanzania”, aim to prevent and prohibit money laundering, as well as provide for the disclosure of information on money laundering. According to Section 6 of the Anti-Money Laundering Act, Cap. 423, the FIU is empowered to issue guidelines to various stakeholders.

Compliance Requirements

As a regulatory authority, the Bank of Tanzania (BoT) is required to comply with the Anti-Money Laundering Act and its regulations, as well as guidelines issued by the FIU. The BoT must ensure that all banking institutions under its jurisdiction adhere to anti-money laundering and combating the financing of terrorism policies, procedures, and controls.

Guidelines Requirements

The guidelines require banks to:

  • Implement effective AML/CFT policies
  • Conduct regular on-site inspections
  • Provide staff training and awareness programs
  • Maintain accurate records
  • Report suspicious transactions to the FIU
  • Establish a contact point for handling AML/CFT issues

Additionally, the guidelines emphasize the importance of:

  • “Know your customer” (KYC) and customer due diligence
  • Enhanced due diligence for high-risk customers and transactions
  • Verifying identities of customers they deal with
  • Maintaining records of customer identification and transactions

Timeline and Impact

The guidelines came into effect on April 1, 2009, and are a significant step towards strengthening Tanzania’s banking sector against money laundering and terrorist financing.

“This is a major milestone in our efforts to combat money laundering and terrorism financing,” said Commissioner Ierman M. Kessy of the Financial Intelligence Unit. “We urge all banks to adhere to these guidelines to ensure the integrity of our financial system.”

Conclusion

The BoT has been tasked with ensuring that all banking institutions under its jurisdiction comply with the guidelines, which are seen as a critical step towards enhancing financial stability and preventing illicit activities in Tanzania.