Financial Crime World

Tanzania Struggles to Combat Money Laundering, Terrorist Financing, and Proliferation Financing

Dar es Salaam - The United Republic of Tanzania is facing the challenge of combating money laundering, terrorist financing, and proliferation financing (ML/TF/PF), serious crimes that threaten the country’s financial stability, national security, and economic development.

The Consequences of Money Laundering, Terrorist Financing, and Proliferation Financing

Money laundering, a process by which criminals hide illegal proceeds, enables them to evade detection and further their criminal activities. Similarly, terrorist financing allows terrorists to fund their operations and perpetuate violence. The consequences of these crimes are far-reaching, undermining the rule of law, social justice, peace, and security.

Gaps in Coordination, Guidance, and Awareness

According to officials, despite efforts to combat ML/TF/PF, there are still gaps in coordination, guidance, and awareness among stakeholders. To address this, the Tanzanian government has developed a national strategy to guide efforts and implementation of preventive measures.

The National Strategy

The strategy aims to:

  • Strengthen coordination among stakeholders
  • Improve risk assessment
  • Enhance public-private sector cooperation
  • Promote awareness and capacity building among AML/CFT/CPF stakeholders, including regulators, law enforcement agencies, and reporting persons

Global Efforts

Tanzania is not alone in this struggle. The global community faces similar challenges, with the Financial Action Task Force (FATF) setting standards for combating ML/TF/PF. FATF’s style regional bodies, such as the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), provide peer review and guidance to member countries.

The Tanzanian government has enacted various laws to criminalize ML/TF/PF, including:

  • Economic and Organized Crime Control Act, 1984
  • Proceeds of Crime Act, 1991
  • Anti-Money Laundering Act, 2006

These laws have been amended regularly to address new challenges and trends.

Challenges and Evolution of Crimes

However, despite these efforts, ML/TF/PF crimes continue to evolve, with criminals using technological advancements to conduct complex transactions and evade detection. The government recognizes that a coordinated approach is necessary to combat these crimes effectively and sustainably.

National AML/CFT/CPF Strategy 2022/23-2026/27

The strategy will be implemented through six chapters:

  1. Introductory matters
  2. Situational analysis
  3. Vision and mission
  4. Objectives
  5. Strategies
  6. Monitoring and evaluation

Conclusion

Tanzania’s struggle against money laundering, terrorist financing, and proliferation financing highlights the need for a coordinated approach to combat these serious crimes. The national strategy is a crucial step towards strengthening the country’s AML/CFT/CPF regime and protecting its financial stability and national security.