Financial Crime World

Tanzania: Anti-Money Laundering Guidelines Receive Mixed Ratings

Dar es Salaam, Tanzania - The United Republic of Tanzania has undergone an assessment of its implementation of the Financial Action Task Force (FATF) Recommendations, with varying degrees of compliance across different aspects.

Assessment Results

According to a recent report, Tanzania scored mostly “partially compliant” ratings, with some areas showing significant progress and others requiring improvement. The assessment covered 40 specific requirements aimed at combating money laundering and terrorist financing.

Areas of Strengths

  • Confiscation and Provisional Measures (R.4): Tanzania was found to be “largely compliant” or “compliant”.
  • Targeted Financial Sanctions Related to Terrorism and Terrorist Financing (R.6): Tanzania was deemed “largely compliant” or “compliant”.
  • Reporting of Suspicious Transactions (R.20): Tanzania was found to be “largely compliant” or “compliant”.

Areas for Improvement

  • Risk Assessment and Application of a Risk-Based Approach (R.1): Tanzania was found to be partially compliant.
  • National Cooperation and Coordination Mechanisms (R.2): Tanzania was deemed partially compliant.
  • Financial Institution Secrecy Laws (R.9): Tanzania’s laws were assessed as partially compliant.
  • Customer Due Diligence Requirements (R.10): Tanzania’s requirements were found to be largely compliant.

Progress and Challenges

Tanzania has made significant progress in areas such as:

  • Regulation and Supervision of Financial Institutions (R.26)
  • Powers of Supervisors (R.27)
  • Financial Intelligence Units (R.29)

However, there are several areas where Tanzania needs improvement, including:

  • Powers of Law Enforcement and Investigative Authorities (R.30)
  • Mutual Legal Assistance (R.37)

Conclusion

The assessment suggests that while Tanzania has made progress in implementing anti-money laundering guidelines, there is still work to be done to bring the country fully into compliance with international standards.

About FATF Recommendations

The Financial Action Task Force (FATF) Recommendations aim to promote transparency, accountability, and cooperation among countries to combat money laundering and terrorist financing. The assessments are conducted annually to monitor countries’ progress in implementing these recommendations.