Tanzania: Compliance Reporting Raises Concerns

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Tanzania has been found to be partially compliant with the Financial Action Task Force (FATF) recommendations on combating money laundering and terrorist financing, according to a recent report. The country scored 24 out of 40 points in the assessment, reflecting its level of implementation of the technical requirements.

Progress Made

Tanzania has made progress in implementing some of the FATF Recommendations, including:

• Assessing risk and applying a risk-based approach (R.1)
• National cooperation and coordination (R.2)
• Confiscation and provisional measures (R.4)

However, there are still areas that require improvement, including:

• Regulation and supervision of financial institutions (R.26)
• Powers of supervisors (R.27)

Non-Compliance

Tanzania was also found to be non-compliant in several areas, including:

• Transparency and beneficial ownership of legal persons (R.24)
• DNFBPs: customer due diligence (R.22)

The report highlights several concerns, including:

• Lack of effective regulation and supervision of financial institutions
• Inadequate powers of supervisors
• Insufficient cooperation with foreign authorities

Reforms and Next Steps

In response to the findings, Tanzania has committed to implementing a number of reforms aimed at strengthening its anti-money laundering and counter-terrorist financing regime. These reforms include:

• Increasing transparency and beneficial ownership of legal persons
• Improving customer due diligence for DNFBPs
• Enhancing cooperation with foreign authorities

The FATF will continue to monitor Tanzania’s progress in implementing these reforms and will assess the country’s compliance with the recommendations on a regular basis.

Note: R.1, R.2, etc. refer to specific FATF Recommendations.