Financial Crime World

Tanzania: Money Service Businesses Face Regulatory Hammer

Tanzania has implemented a range of regulations to promote economic growth and attract foreign investment. This article will outline the key legislation and regulations governing money service businesses in Tanzania.

Constitutional Framework

The Tanzanian Constitution, which came into effect in 1977, recognizes individuals’ right to acquire and own property. This sets the tone for the country’s regulatory framework.

Key Legislation

Several key laws have been enacted to regulate various aspects of business and finance:

  • Tanzania Investment Act of 1997: Defines local investors, foreign investors, and local capital, exempting certain investments from its scope.
  • Financial Laws (Miscellaneous Amendments) Act of 1997: Addresses potential conflicts between different financial laws.
  • Capital Markets and Securities Act of 1994: Establishes a regulatory body for Tanzania’s capital markets.
  • Mining Act of 1998: Governs mining activities in the country.
  • Banking and Financial Institutions Act of 1991: Harmonizes the operations of all financial institutions in Tanzania.

Additional Regulations

Other regulations have been introduced to promote economic development, including:

  • Land Act of 1999: Regulates land ownership and use.
  • Village Land Act of 1999: Provides for the management and use of village lands.
  • Value Added Tax Act of 1997: Imposes a tax on the value added to goods and services.
  • Immigration Act of 1995: Regulates immigration and border control.

Foreign Exchange Regulations

The government has also introduced measures to regulate foreign exchange transactions:

  • Foreign Exchange Act of 1992: Provides for the administration and management of dealings in gold, foreign currency, securities, payments, debts, imports, exports, transfer or settlement of property.

Employment Laws

Employment laws in Tanzania include:

  • Employment Ordinance Act, Cap 366
  • Severance Allowance Act, Cap 487 (No. 57 of 1962)
  • Security of Employment Act, Cap 574, No. 62

Additional Regulations

There are numerous other laws and regulations in place governing various aspects of business and finance, including:

  • Investment promotion
  • Taxation
  • Petroleum exploration and production
  • National environment
  • Patents
  • Trade and services marks
  • Companies
  • Business names
  • Public corporations
  • Arbitration
  • Law of contract
  • Business activities registration
  • Export processing zones
  • Special economic zones

These regulations aim to promote economic growth, attract foreign investment, and ensure a stable business environment in Tanzania.