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Tanzania Non-Profit Organizations Face Scrutiny Over Terrorist Financing Risks

DAR ES SALAAM, TANZANIA - The non-profit organization (NPO) sector in Tanzania is under scrutiny as the country’s authorities seek to identify and mitigate terrorist financing risks.

Background

The Non-Profit Organization (NPO) sector in Tanzania is required to operate within a legal framework that ensures transparency and accountability. A recent review of policies, laws, regulations, guidelines, circulars, and codes of conduct was conducted by the National Bureau of Statistics (NBS) and the Financial Intelligence Unit (FIU) in collaboration with other stakeholders.

Findings

The assessment entailed identifying the legal forms that exist in Tanzania, determining non-profit organizations as a subset of legal forms, and assessing the risks associated with terrorist financing. The review also included an analysis of responses to a questionnaire sent to NPOs in November 2022.

Here are some key findings:

  • Most NPOs in Tanzania are created as Non-Governmental Organizations (NGOs), which are governed by the NGOs Act, Cap. 56.
  • However, some organizations may not meet the definition of an NPO as provided by the Financial Action Task Force (FATF) since they may not necessarily be engaging in raising and disbursing funds.

Recommendations

The review highlighted the need for greater transparency and accountability within the NPO sector, particularly with regards to financial transactions. The authorities have called on NPOs to:

  • Ensure that their financial activities are properly documented.
  • Prevent misappropriation of funds.

Government Response

In response to the findings, the government has announced plans to conduct a comprehensive audit of all NPOs operating in Tanzania to ensure compliance with anti-money laundering and counter-terrorism financing regulations. This move is seen as a significant step towards strengthening the country’s financial systems and preventing the misuse of non-profit organizations for illicit purposes.

Call to Action

The authorities have called on NPOs to cooperate fully with the review process and to provide any necessary information or documentation required by the authorities.