Financial Crime World

Here is the rewritten article in Markdown format:

Know Your Customer (KYC) Process in Tanzania, United Republic of

The know your customer or know your client (KYC) guidelines and regulations for financial services require that professionals verify the identity, suitability, and risks involved with maintaining a business relationship. In Tanzania, these regulations are governed by the Anti-Money Laundering Act, 2006.

National Regulatory Framework

The Anti-Money Launderling Act, 2006 is the main act governing anti-money laundering in Tanzania. It came into operation in 2006 and works together with other laws such as:

  • Prevention and Combating of Corruption Act 2007
  • Bank of Tanzania Act, 2006
  • Banking and Financial Institutions Act, 2006
  • Prevention of Terrorism Act 2002
  • And others

Financial Intelligence Unit (FIU)

The FIU is an extra-ministerial department of the Ministry of Finance responsible for controlling anti-money laundering in Tanzania. Section 4(2) of the AMLA empowers the FIU to:

  • Receive suspicious transaction reports and other information regarding potential money laundering or terrorist financing
  • Analyze and disseminate this information

National Multi-Disciplinary Committee

There is also a National Multi-Disciplinary Committee on anti-money laundering, which assesses and improves anti-money laundering policies and advises the government on anti-money laundering and related matters. Other regulators include:

  • Bank of Tanzania
  • Individual banks and financial institutions
  • Capital Markets and Securities Authority
  • Insurance Supervisory Department
  • Gaming Board
  • Ministry of Finance (Orders of the Minister)
  • Ministry of Home Affairs
  • Attorney General of the United Republic of Tanzania
  • Director of Public Prosecution
  • Director of Prevention and Combating of Corruption Bureau (PCCB)
  • Police Force
  • Business Registration and Licensing Authority
  • Tanzania Revenue Authority
  • Customs & Excise Department
  • Municipal Trade/Licensing Officer
  • Registration Insolvency & Trusteeship Agency
  • Registrar of Societies & Non-Governmental Organizations
  • Immigration Department
  • Tanzania Investment Centre
  • Tanzania Intelligence & State Security Services Unit and Anti-Terrorism Unit

Customer Due Diligence

The conduct of a typical KYC identification process involves verifying the identity, suitability, and risks involved with maintaining a business relationship. The applicant must show an official record reasonably capable of establishing their true identity, which may include:

  • Birth certificates
  • Passports
  • Other identification documents

Outsourcing Customer Due Diligence

Entities are permitted to outsource customer due diligence to third parties who are not obliged by law to meet AML regulations. However, when a third party conducts due diligence, it is the primary role of the party that requested the information to:

  • Verify and be accountable for the information

Presence of a License or Registration Requirement

There is no license or registration requirement in Tanzania for third-party providers who conduct customer due diligence on behalf of another entity.

Entities That Can Be Relied Upon Specifically by Law as a Third Party

In Tanzania, entities that can be relied upon specifically by law as a third party to comply with AML regulations include:

  • Credit institutions
  • Financial institutions
  • Auditors, external accountants, and tax advisors
  • Notaries and other independent legal professionals
  • Trust or company service providers
  • Estate agents
  • Providers of gambling services
  • And others