Financial Crime World

Tanzania Enhances Fight Against Money Laundering with Expanded Scope

DAR ES SALAAM, Tanzania - In a move aimed at strengthening its anti-money laundering efforts, the Tanzanian government has expanded the scope of financial assets covered by the Anti-Money Laundering Act (CAP. 423 R.E. 2022).

Amended Act Defines “Virtual Asset Service Providers”

The amended act defines “virtual asset service providers” as individuals or entities that conduct activities such as:

  • Exchanging virtual assets and fiat currencies
  • Transferring virtual assets
  • Providing financial services related to the sale of virtual assets

These definitions aim to tackle emerging threats in the financial sector, including money laundering and terrorist financing through virtual assets.

Establishment of Financial Intelligence Unit (FIU)

The Financial Intelligence Unit (FIU), established under the Ministry responsible for finance, will be responsible for:

  • Receiving suspicious transaction reports and other information regarding money laundering, terrorist financing, and proliferation financing
  • Analyzing and disseminating this information to law enforcement agencies and other relevant authorities

The FIU will operate independently with a budget that is separate from the government’s main budget.

Key Responsibilities of Commissioner of FIU

The Commissioner of the FIU will be appointed by the President and will be responsible for:

  • The general administration of the unit
  • Holding office for a term of five years, which may be re-appointed for another term of five years subject to satisfactory performance

Expanded Scope of Act

The amended act gives the FIU the power to receive and analyze reports including:

  • Suspicious transaction reports
  • Currency transaction reports
  • Cross-border currency reports
  • Electronic funds transfer reports
  • Other information submitted by reporting persons or sources

The FIU will also have the authority to disseminate the results of its analysis to law enforcement agencies and other relevant authorities.

Conclusion

The expanded scope of the act is seen as a significant step towards enhancing Tanzania’s anti-money laundering efforts and combating financial crime in the country. With the establishment of the FIU, the government is better equipped to tackle emerging threats in the financial sector and protect its economy from money laundering and terrorist financing activities.