Tanzania’s Money Laundering Epidemic: A Lucrative Business for Criminals

Nairobi - Tanzania has been grappling with a massive money laundering crisis, as criminals exploit various illegal activities to generate huge profits. From smuggling and poaching to human trafficking and stolen motor vehicles, the list of criminal enterprises is long and lucrative.

The Scale of the Problem

According to officials, the country has lost hundreds of billions of shillings in revenue due to these illicit activities, which often involve the transportation of goods and people across borders. The money laundering problem is so severe that it has become a major concern for financial institutions, law enforcement agencies, and anti-corruption bodies.

Illegal Activities

• Smuggling: Tanzania has lost over Tsh300 billion (US$300 million) through the smuggling of tanzanite alone between 1995 and 2002. The country also loses billions of shillings worth of gold and gemstones annually.
• Illegal Arms Trade: Tanzania has become a major route for legal and illegal arms trafficking to warring factions in neighboring countries such as Burundi, the Democratic Republic of Congo (DRC), and Rwanda.
• Human Trafficking: Thousands of women and children are exploited for prostitution, pornography, and forced labor. Many Tanzanian women and girls are trafficked to South Africa, the Middle East, North Africa, Europe, and the US, while others are trafficked internally to work as laborers or child prostitutes.
• Illegal Motor Vehicle Trade: Thieves target high-end vehicles such as Lexus, Toyota Landcruisers, Nissan Patrols, and Mitsubishi Pajeros, which are then sold to buyers in different parts of the country or exported to neighboring countries.
• Poaching: Elephants and rhinos are hunted for their ivory and horns. In 1996, wildlife authorities impounded 4,600kg of elephant tusks, while in 2002, a consignment of 1,000 tusks was seized in Dar es Salaam.

The Government’s Response

The Tanzanian government has acknowledged the severity of the money laundering problem and has promised to take action to address it. However, many critics argue that more needs to be done to combat corruption and improve transparency in financial transactions.

High-Profile Cases

In recent years, there have been several high-profile cases of money laundering in Tanzania, including the arrest of a former government official who was accused of embezzling millions of shillings from public funds.

Conclusion

As the country continues to grapple with these complex issues, it is clear that tackling money laundering will require a sustained effort from all stakeholders, including law enforcement agencies, financial institutions, and anti-corruption bodies.