Tanzania’s Financial Regulators Crack Down on Money Laundering and Terrorist Financing
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The United Republic of Tanzania’s Financial Intelligence Unit has issued a set of guidelines for the Bank of Tanzania aimed at preventing money laundering and terrorist financing. The Anti-Money Laundering Act Cap. 423, which was promulgated to prevent and prohibit money laundering, provides for the disclosure of information on money laundering, establishes a Financial Intelligence Unit, and sets up a National Multi-Disciplinary Committee on Anti-Money Laundering.
Guidelines for Compliance
The guidelines, known as Guidelines No: 3, outline the measures that the Bank of Tanzania must take to ensure compliance with anti-money laundering regulations. These measures include:
- Implementation of policies and procedures for customer due diligence
- Reporting suspicious transactions
- Training staff on anti-money laundering issues
Responsibilities of the Bank of Tanzania
According to the guidelines, the Bank of Tanzania is responsible for ensuring that all banking institutions under its jurisdiction have in place adequate anti-money laundering policies, procedures, and controls. The bank must also carry out on-site inspections to ensure compliance with anti-money laundering regulations.
Reporting Suspicious Transactions
The guidelines require the Bank of Tanzania to report any suspicious transactions or violations of anti-money laundering regulations to the Financial Intelligence Unit. The bank is also required to appoint a Money Laundering Reporting Officer (MLRO) who will be responsible for ensuring that suspicious transaction reports are timely and appropriately filed with the unit.
Effective Date
The guidelines come into effect on April 1, 2009, and are aimed at enhancing Tanzania’s ability to combat money laundering and terrorist financing. The Financial Intelligence Unit has encouraged banks to provide feedback on the implementation of the guidelines and forward any comments to the unit for its appropriate action.
Impact on Investor Confidence
Tanzania’s move is seen as a significant step in the fight against money laundering and terrorist financing, and is expected to boost investor confidence in the country’s financial sector.