Tanzania Tanzania

New Documents

The Eastern and Southern Africa Anti-Money Laundering Group published a second follow-up report on Tanzania’s progress on improving its technical compliance with recommended anti-money laundering and counterterrorist financing measures.

Tanzania’s Financial Intelligence Unit issued updated guidance on implementing sanctions against terrorist and proliferation financiers.

News

Enforcement Actions

The Bank of Tanzania issued a notice announcing the fine of TZS 145 million against the London, England-based financial institution for its breach of regulations 17, 22 and 28 of the Anti-Money Laundering Regulations, 2012.

The Bank of Tanzania announced a fine of TZS 580 million against the Dar es Salaam, Tanzania-based bank for deficiencies with regard to regulations 17, 22 and 28 of the Anti-Money Laundering Regulations, 2012.


Important Facts

  • The U.S. State Department identifies Tanzania as a major money laundering jurisdiction. While Tanzania is not a major regional financial center, its location at the crossroads of southern, central and eastern Africa leaves the country vulnerable to illicit finance and criminal activities with nexuses to money laundering. Such crimes include tax evasion, corruption, smuggling, trade invoice manipulation, illicit trade in drugs and counterfeit goods, wildlife trafficking, and terrorist financing. Given that a majority of Tanzania's population works in the informal sectors, cash-based, informal, nontraditional financial systems heighten vulnerabilities to financial crimes. Individuals and financial investors attempt to evade taxes by transferring money outside the formal financial system. Cross-border trade in used-cars, auto parts, clothing, cosmetics, smuggled cigarettes and foodstuffs, as well as illegal trading in precious minerals and stones also presents challenges in combating financial crime. Criminals use front companies, hawaladars and currency exchanges to launder funds, particularly in the island of Zanzibar.Source: 2020 International Narcotics Control Strategy Report (INCSR)    

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 7 High : 0
Largely Compliant : 12 Substantial : 0
Partially Compliant : 17 Moderate : 2
Non-Compliant : 4 Low : 9

Tanzania's technical compliance was re-rated in a follow-up report published on Dec. 4, 2023.

BASEL i

Rank : 26/141
Score : 6.39/10

TRANSPARENCY INTERNATIONAL i

Rank : 96/180
Score : 37/100

Tax Justice Network i

Rank : 98/133
Score : 71/100