Financial Crime World

Financial Crime Investigation Uncovers Tanzania’s Anti-Money Laundering Legislation and Regulations

Tanzania has taken a significant step towards combating financial crimes by unveiling its anti-money laundering (AML) and combating the financing of terrorism (CFT) legislation and regulations.

Amendments to Existing Laws

The government amended the Anti-Money Laundering Act, Cap 423 of 2006, which applies to Tanzania’s mainland, in March 2022. Similarly, the Anti-Money Laundering and Proceeds of Crime Act, No. 10 of 2009, applicable to Zanzibar, underwent amendments in the same year.

Issuance of Regulations

The AMLA Regulations, June 2022, were issued, outlining the requirements for reporting cash transactions and electronic funds transfers. The Prevention of Terrorism Regulations, May 2022, provide guidelines for preventing the financing of terrorism.

Other Relevant Regulations

  • Anti-Money Laundering (Cross-Border Declaration of Currency and Bearer Negotiable Instruments) Regulations, 2016
  • Anti-Money Laundering (Amendment) Regulations, 2019

Enacted Acts to Combat Financial Crimes

Several acts have been enacted to combat financial crimes:

Mainland Tanzania

  • Proceeds of Crime Act, Cap. 256 of 1991
  • Prevention of Terrorism Act, Cap. 19 of 2002

Zanzibar

  • Prevention of Terrorism Act, Cap. 19 of 2002

Other Key Legislation

  • Mutual Assistance in Criminal Matters Act, Cap. 254 of 1991
  • Drugs and Prevention of Illicit Traffic in Drugs Act, Cap. 95 of 1995
  • Extradition Act, Cap. 368 of 1965
  • Evidence Act, Cap. 6 of 1967
  • Economic and Organized Crime Control Act, Cap. 200
  • Written Laws (Miscellaneous Amendments) Act, 2016

Guidelines for Compliance

The government has issued various guidelines to ensure compliance with AML/CFT regulations:

Key Guidelines

  • Revised Guidelines on Targeted Financial Sanctions
  • AML/CFT Compliance guide on obligations of DNFBPS
  • AML/CFT Risk Assessment Guideline

Other Guidelines

  • AML/ CFT Risk Assessment Report Format
  • Targeted Financial Sanctions Guideline
  • Verification of customer identities guidelines
  • Anti-money laundering guidelines for:
    • Banking institutions
    • Accountants and auditors
    • Insurers
    • CMSA licensees
    • Collective investment schemes

Expected Outcomes

The implementation of these AML/CFT measures is expected to enhance Tanzania’s financial sector stability and reduce the risk of illicit activities. As a result, the country’s economy is likely to benefit from increased investor confidence and improved international cooperation in fighting financial crimes.