Financial Crime World

Tanzania, United Republic of: Know Your Customer Regulations Get a Boost

===========================================================

Tanzania has introduced new regulations and guidelines for financial institutions and designated non-financial businesses and professions (DNFBPs) to strengthen its anti-money laundering and combating the financing of terrorism (AML/CFT) framework.

Enhanced Customer Due Diligence Requirements

The latest amendments to the Anti-Money Laundering Act and Regulations, published in January 2023, introduce enhanced customer due diligence requirements. This includes:

  • Increased transparency and reporting requirements for DNFBPs
  • Strengthened controls on cash transactions and cross-border flows

These changes are designed to improve Tanzania’s ability to detect and prevent money laundering and terrorist financing activities.

Targeted Financial Sanctions

The new regulations also introduce targeted financial sanctions against individuals and entities identified by the United Nations and other international organizations as posing a risk to global stability.

Guidelines for Compliance

Tanzania has issued several guidelines to help institutions comply with AML/CFT requirements. These include:

  • Guidance on customer identity verification
  • Risk assessment
  • Reporting obligations

The revised guidelines on targeted financial sanctions provide clarity on the application of sanctions against individuals and entities designated by the United Nations and other international organizations as posing a risk to global stability.

Industry Response

Industry stakeholders have welcomed the changes, citing the need for enhanced AML/CFT measures in Tanzania. “These reforms demonstrate the government’s commitment to addressing money laundering and terrorist financing risks,” said an industry source.

Compliance Obligations

Financial institutions and DNFBPs are urged to familiarize themselves with the new regulations and guidelines to ensure compliance. The full text of the Anti-Money Laundering Act and Regulations can be accessed through the Bank of Tanzania’s website. Industry stakeholders are advised to review the amendments and guidelines carefully to ensure compliance with AML/CFT requirements.

Conclusion

Tanzania’s AML/CFT framework is now more robust than ever, with a focus on customer due diligence, risk assessment, and reporting obligations. The new regulations and guidelines demonstrate the government’s commitment to addressing money laundering and terrorist financing risks.