Financial Crime World

Tanzania’s Financial Intelligence Unit Issues New Anti-Money Laundering Guidelines for Bank of Tanzania

The United Republic of Tanzania’s Financial Intelligence Unit (FIU) has issued new anti-money laundering (AML) guidelines for the Bank of Tanzania, aimed at strengthening the country’s efforts to combat money laundering and terrorist financing.

Compliance Requirements

The guidelines require the Bank of Tanzania to comply with:

  • The Anti-Money Laundering Act Cap. 423
  • Anti-Money Laundering Regulations, 2007
  • Various guidelines issued by the Financial Intelligence Unit

The bank must ensure that all banking institutions under its jurisdiction have:

  • Board-approved AML/CFT policies, procedures, and controls in place
  • Verify the identities of their customers through Know Your Customer (KYC) and Customer Due Diligence (CDD)
  • Maintain records of customer transactions
  • Report suspicious transactions to the Financial Intelligence Unit

Reporting Requirements

Banks are required to:

  • Establish a contact point with the FIU for handling AML/CFT issues
  • Report any violations of AML/CFT regulations to the FIU

Supervision and Training

The Bank of Tanzania is responsible for:

  • Conducting on-site inspections of banking institutions to ensure compliance with AML/CFT regulations
  • Developing and implementing training programs for bank staff on AML/CFT issues

Transparency and Accountability

The guidelines emphasize the importance of transparency and accountability, requiring banks to:

  • Maintain accurate records of customer transactions
  • Report any violations of AML/CFT regulations to the FIU

Effective Date and Compliance

The guidelines became effective on April 1, 2009. The Commissioner of the Financial Intelligence Unit, Ierman M. Kessy, expressed hope that the guidelines would contribute to a significant reduction in money laundering and terrorist financing activities in Tanzania.

Conclusion

These guidelines are an important step towards strengthening Tanzania’s efforts to combat money laundering and terrorist financing, and demonstrate the country’s commitment to implementing effective anti-money laundering measures.