Financial Crime World

Tanzanian Financial Institutions Required to Enhance Customer Due Diligence Measures

New Regulations Aim to Combat Money Laundering and Terrorist Financing

Dar es Salaam, Tanzania - The Tanzanian government has introduced new regulations requiring financial institutions (FIs) to enhance their customer due diligence (CDD) measures to combat money laundering and terrorist financing.

Enhanced Customer Due Diligence Measures

According to Section 10A(1)(a)(ii) of the Anti-Money Laundering and Combating Financing of Terrorism Act (AMLA) and new Section 10C(1)(c) of the Prevention of Money Laundering Act (POCA), FIs are required to:

  • Identify and verify the identity of customers, including natural persons and legal entities, using reliable, independent source documents, data or information.
  • Understand and obtain information on the purpose and intended nature of business relationships.
  • Conduct ongoing due diligence on customers, including scrutinizing transactions undertaken throughout the course of that relationship.

Identifying Beneficial Owners

FIs are also required to:

  • Identify and verify the identity of beneficial owners, using reliable, independent source documents, data or information. This includes identifying:
    • Natural person(s) exercising control of a legal entity through ownership interests.
    • Relevant natural person who holds a senior managing official position if no one exercises control.
  • Obtain sufficient information concerning beneficiaries designated by characteristics, class, or other means to satisfy the financial institution that it will be able to establish the identity of the beneficiary at the time of payout.

Verification and Timing

FIs are required to verify the identity of customers and beneficial owners:

  • Before or during the course of establishing a business relationship.
  • Or complete verification after the establishment of the business relationship, provided that this occurs sooner as reasonably practicable.

Aims and Implementation

The new regulations aim to enhance transparency and prevent illegal activities, such as money laundering and terrorist financing. Financial institutions are required to implement these measures by [insert date] to ensure compliance with the law.

Additional Regulations Planned

In related news, the Tanzanian government has also announced plans to introduce additional regulations to strengthen its anti-money laundering and combating financing of terrorism framework. Stay tuned for further updates on this developing story.