Financial Crime World

Tanzania’s Banks Must Know Their Customers

Strengthening Anti-Money Laundering Measures

The Financial Intelligence Unit (FIU) of Tanzania has issued guidelines for banks in the country to thoroughly know their customers, a move aimed at preventing money laundering and terrorist financing.

Effective Customer Due Diligence Procedures

From April 1, 2009, banks must implement sound customer due diligence procedures, verify customer identities, and maintain records of customer transactions. These measures are designed to prevent the use of financial systems for illegal activities such as money laundering and terrorist financing.

Understanding Customer Identities and Businesses

According to FIU Commissioner Herman M. Kessy, “the Anti-Money Laundering Act, 2007 requires banks to know their customers, including verifying their identities and understanding the nature of their businesses.”

Additional Requirements for Banks

The guidelines also require banks to:

  • Have effective anti-money laundering (AML) policies and procedures in place
  • Conduct on-site inspections
  • Train staff on AML issues
  • Report suspicious transactions to the FIU

Appointing a Money Laundering Reporting Officer (MLRO)

Each bank is mandated to appoint an MLRO who will be responsible for ensuring that suspicious transaction reports are timely and appropriately filed with the FIU.

Feedback and Comments Encouraged

The FIU has encouraged banks to provide feedback on the implementation of these guidelines and forward any comments to the unit for appropriate action.