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Tanzania Fails to Meet Global Anti-Money Laundering Standards
Dar es Salaam, Tanzania - A recent report by the Financial Action Task Force (FATF) has found that the Tanzanian government has been unsuccessful in implementing anti-money laundering (AML) and combating the financing of terrorism (CFT) measures.
FATF Report Highlights Deficiencies
The FATF Follow-Up Report 2022 assesses Tanzania’s implementation of technical requirements to combat money laundering and terrorist financing. The report reveals that Tanzania scored poorly across multiple areas, with several key recommendations not being fully implemented.
Key Findings
- Lack of progress in assessing risk and applying a risk-based approach (R.1)
- Failure to implement effective national cooperation and coordination mechanisms (R.2)
- Non-compliance with confiscation and provisional measures required for money laundering and terrorist financing offenses (R.3 and R.5)
- Concerns over financial institution secrecy laws (R.9)
- Inadequate customer due diligence requirements (R.10) and record-keeping practices (R.11)
- Non-compliance with transparency and beneficial ownership of legal persons (R.24) and legal arrangements (R.25)
Additional Deficiencies
- Lack of progress in implementing measures to regulate and supervise financial institutions (R.26)
- Inadequate powers of supervisors (R.27)
- Non-compliance with regulation and supervision of DNFBPs (R.28) and responsibilities of law enforcement and investigative authorities (R.30)
Call for Immediate Action
The report calls on the Tanzanian government to take immediate action to address these deficiencies and implement the necessary measures to bring its AML/CFT regime in line with international standards.
Source: FATF Follow-Up Report 2022, Tanzania, United Republic of.