Together with DRC and Mozambique, Tanzania has been placed under increased monitoring by FATF (Financial Action Task Force) on October 2022.
Tanzania has been working to get off the greylist by addressing deficiencies in its anti-money laundering and counter-terrorism financing framework. To achieve this, the Tanzanian government has implemented various measures, including:
- Enacting new laws and regulations: Tanzania has passed new laws and regulations to strengthen its legal framework for anti-money laundering and counter-terrorism financing. For example, the government has passed the Anti-Money Laundering Act, of 2020, which provides for the creation of a Financial Intelligence Unit (FIU) to enhance the country’s capacity to combat money laundering and terrorism financing.
- Enhancing compliance: The Tanzanian government has taken measures to increase compliance with anti-money laundering and counter-terrorism financing regulations. This includes training financial institutions and non-financial businesses on their responsibilities and obligations, conducting risk assessments, and enhancing supervision and enforcement measures.
- Increasing international cooperation: Tanzania has increased its cooperation with other countries and international organizations to combat money laundering and terrorism financing. The government has signed several bilateral agreements with other countries and has been working closely with the East African Community (EAC) and the Intergovernmental Authority on Development (IGAD) to enhance its capacity to address these issues.
- Conducting audits and assessments: Tanzania has conducted audits and assessments of its financial institutions and other businesses to identify areas of weakness and develop strategies to address them. These include audits of its banking sector, insurance sector, and other high-risk businesses.
- Strengthening the judicial system: Tanzania has taken steps to strengthen its judicial system to enhance its capacity to investigate and prosecute cases of money laundering and terrorism financing.
Also read: Mozambique rallies strong international support to exit FATF “grey list”
While Tanzania has made progress in addressing the issues identified by the FATF, there is still work to be done. The country will need to continue implementing and enforcing the measures it has put in place to address the FATF’s concerns in order to get off the grey list.