Financial Crime World

Tanzania: Financial Authority Issues Guidelines to Combat Money Laundering

The Financial Intelligence Unit (FIU) in Tanzania has issued guidelines to the Bank of Tanzania, aimed at preventing money laundering and combating terrorist financing.

Guidelines for Anti-Money Laundering Compliance

The Anti-Money Laundering Guidelines for Bank of Tanzania come into effect on April 1st, 2009. These guidelines are designed to help the bank comply with Tanzania’s anti-money laundering laws and regulations. Key requirements include:

  • Ensuring that all banking institutions under its jurisdiction have in place adequate policies, procedures, and controls to prevent money laundering and terrorist financing.
  • Verifying the identities of customers and retaining records of transactions.
  • Reporting any suspicious transactions to the FIU.
  • Establishing a contact point for handling anti-money laundering and combating terrorist financing issues.

Importance of Staff Training and Awareness

The guidelines also stress the need for staff training and awareness on anti-money laundering and combating terrorist financing issues. Regular on-site inspections are required to ensure compliance with anti-money laundering regulations.

Fulfilling Obligations under Anti-Money Laundering Act

These guidelines are designed to help Bank of Tanzania fulfill its obligations under the Anti-Money Laundering Act, Cap. 423, which was enacted in 2007 to prevent money laundering and terrorist financing.

“We hope to enhance the effectiveness of our anti-money laundering regime and reduce the risks associated with financial crimes,” said Commissioner Ierman M. Kessy of the FIU. “We encourage Bank of Tanzania to implement these guidelines and report any comments or concerns they may have to us.”

Strengthening Financial Sector Regulation and Oversight

The issuance of these guidelines marks an important step in Tanzania’s efforts to combat money laundering and terrorist financing, and is seen as a key part of its broader efforts to strengthen financial sector regulation and oversight.