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Tanzanian Government Steps Up Fight Against Money Laundering with New Anti-Money Laundering Act

Dar es Salaam, Tanzania - The Tanzanian government has taken a significant step towards combating money laundering and terrorist financing by establishing a Financial Intelligence Unit (FIU) and defining the scope of virtual asset service providers.

New Anti-Money Laundering Act

The new Anti-Money Laundering Act, which came into effect in 2022, defines a virtual asset service provider 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
  • Participation in and provision of financial services related to an issuer’s offer or sale of a virtual asset

Financial Intelligence Unit (FIU)

The FIU, which will operate under the Ministry responsible for finance, will be responsible for:

  • Receiving, analyzing, and disseminating suspicious transaction reports, currency transaction reports, cross-border currency reports, electronic funds transfer reports, and other information regarding actual or potential money laundering, terrorist financing, or proliferation financing
  • Receiving reports and information submitted by reporting persons or submitted from any other source
  • Conducting operational and strategic analysis on such reports and information

Powers and Duties of FIU

The FIU will have the following powers and duties:

  • Receiving, analyzing, keeping, and maintaining suspicious transaction reports and other information concerning money laundering and associated predicate offences, terrorist financing, and proliferation financing
  • Disseminating the results of its analysis to law enforcement agencies, financial institutions, and other stakeholders to facilitate timely and effective investigations and prosecutions

Virtual Asset Service Providers

The new act also defines virtual asset service providers as individuals or entities that provide services related to virtual assets, such as exchange, transfer, safekeeping, or administration. These providers will be required to:

  • Register with the FIU
  • Comply with anti-money laundering and counter-terrorism financing regulations

Conclusion

The establishment of the FIU and the definition of virtual asset service providers are significant steps towards combating money laundering and terrorist financing in Tanzania. The government’s efforts to regulate the financial sector and prevent illicit activities will help to strengthen the country’s economy and ensure the safety and security of its citizens.

Sources

  • Anti-Money Laundering Act, 2022
  • Tanzanian Government Gazette