Financial Crime World

Tanzania’s Stricter AML/CTF Regulations Aim to Combat Money Laundering and Terrorism Financing

The United Republic of Tanzania has recently strengthened its anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations to prevent illicit financial activities and ensure national security.

Enhanced AML Legislation

Tanzania’s main AML legislation is the Anti-Money Laundering Act, Cap. 423 of 2006, which was amended in March 2022 to enhance its provisions. The amendments introduced new requirements for reporting suspicious transactions and updated definitions of key terms such as “money laundering” and “terrorist financing”.

Additional Regulations

The country has issued various regulations under the AML/CFT framework, including:

  • Anti-Money Laundering (Amendment) Regulations, 2019: Introduced new requirements for cash transaction reporting and electronic funds transfers.
  • Prevention of Terrorism Regulations, 2022: Aimed at preventing the financing of terrorist activities.

Compliance Requirements

Financial institutions in Tanzania are required to comply with AML/CFT regulations, which include:

  • Identifying and verifying customer identities
  • Monitoring transactions
  • Reporting suspicious activity to the Financial Intelligence Unit (FIU)

The FIU is responsible for analyzing and disseminating information on suspicious transactions to law enforcement agencies.

Sector-Specific Guidelines

Tanzania has issued guidelines for various sectors, including:

  • Banking: Anti-Money Laundering Guidelines for Banking Institutions
  • Accounting: Anti-Money Laundering Guidelines for Accountants and Auditors (Issued by NBAA)
  • Insurance: Anti-Money Laundering and Counter-Terrorist Financing Guidelines to Insurers
  • Collective Investment Schemes: Anti-Money Laundering Guidelines to CMSA Licensees

These guidelines cover topics such as risk assessment, customer due diligence, and reporting requirements.

International Recognition

Tanzania’s efforts to combat money laundering and terrorism financing have been praised by international organizations, which recognize the importance of effective AML/CFT frameworks in preventing illicit financial activities and promoting national security.

Key AML/CFT Legislation and Regulations

  • Anti-Money Laundering Act, Cap. 423 of 2006 (amended March 2022)
  • Anti-Money Laundering (Amendment) Act, 2012
  • Anti-Money Laundering and Proceeds of Crime Act, No. 10 of 2009 (for Tanzania Zanzibar)
  • Prevention of Terrorism Regulations, 2022

Guidelines

  • Revised Guidelines on Targeted Financial Sanctions
  • AML/CFT Compliance guide on obligations of DNFBPS
  • AML/CFT Risk Assessment Guideline
  • Targeted Financial Sanctions Guideline
  • Guidelines for Verification of Customers’ Identities
  • Anti-Money Laundering Guidelines to Collective Investment Schemes