Financial Crime World

Tanzania Enacts New Anti-Money Laundering Act to Strengthen Financial Intelligence

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Dar es Salaam, Tanzania - A Significant Step Forward in Combating Money Laundering and Terrorist Financing

The United Republic of Tanzania has passed a landmark legislation aimed at combating money laundering and terrorist financing. The new law, known as the Anti-Money Laundering Act (CAP. 423 R.E. 2022), sets out to strengthen the country’s financial intelligence capabilities and ensure that its financial system is not used for illicit activities.

Key Provisions of the New Law

  • Establishment of a Financial Intelligence Unit (FIU): The FIU will operate independently with a Commissioner appointed by the President to oversee its activities. The Commissioner will be responsible for the general administration of the FIU and will hold office for a term of five years, subject to satisfactory performance.
  • Definitions: A “virtual asset service provider” is defined as any person who conducts one or more of the following activities: exchange between virtual assets and fiat currencies, exchange between one or more forms of virtual assets, transfer of virtual assets, safekeeping or administration of virtual assets or instruments enabling control over virtual assets, and participation in and provision of financial services related to an issuer’s offer or sale of a virtual asset.
  • Reporting Requirements: The FIU will be responsible for receiving reports from reporting persons and other sources within and outside the country. It will conduct operational and strategic analysis on these reports and disseminate the results to law enforcement agencies to facilitate investigations and prosecutions.

Benefits of the New Legislation

The new legislation is seen as a significant step forward in Tanzania’s efforts to combat money laundering and terrorist financing, and is expected to strengthen its position in the global fight against financial crimes. The FIU will play a crucial role in identifying and disrupting illicit financial activities, thereby protecting the integrity of the country’s financial system.

Conclusion

The passage of the Anti-Money Laundering Act (CAP. 423 R.E. 2022) marks an important milestone in Tanzania’s efforts to combat money laundering and terrorist financing. The new law is expected to have a positive impact on the country’s financial sector, ensuring that it remains safe and secure for both local and international transactions.