Tanzania
Anti-Money Laundering Act
Chapter 423
- Published in Tanzania Government Gazette 2 on 12 January 2007
- Commenced on 1 July 2007 by Anti-Money Laundering Act (Date of Commencement) Notice, 2007
- [This is the version of this document as it was from 8 March 2022 to 13 March 2025.]
- [Note: This legislation was revised and consolidated as at 31 July 2002 and 30 November 2019 by the Attorney General's Office, in compliance with the Laws Revision Act No. 7 of 1994, the Revised Laws and Annual Revision Act (Chapter 356 (R.L.)), and the Interpretation of Laws and General Clauses Act No. 30 of 1972. All subsequent amendments have been researched and applied by Laws.Africa for TANZLII.]
- [Amended by Anti-trafficking in Persons Act, 2008 (Act 6 of 2008) on 1 February 2009]
- [Amended by Anti-Money Laundering (Amendment) Act, 2012 (Act 1 of 2012) on 24 February 2012]
- [Amended by Written Laws (Miscellaneous Amendments) Act, 2013 (Act 1 of 2013) on 10 May 2013]
- [Amended by Cybercrimes Act, 2015 (Act 14 of 2015) on 1 September 2015]
- [Amended by Written Laws (Miscellaneous Amendments) (No. 2) Act, 2016 (Act 4 of 2016) on 8 July 2016]
- [Amended by Finance Act, 2020 (Act 8 of 2020) on 1 July 2020]
- [Amended by Anti-Money Laundering (Amendment) Act, 2022 (Act 2 of 2022) on 8 March 2022]
Part I – Preliminary provisions
1. Short title
This Act may be cited as the Anti-Money Laundering Act.2. Application
3. Interpretation
In this Act, unless the context otherwise requires—"Act" means the Anti-Money Laundering Act;“arrangement” has the meaning ascribed to it under the Income Tax Act;[Cap. 332][definition of “arrangement” inserted by section 4 of Act 8 of 2020]"bank" has the meaning ascribed to it under the Banking and Financial Institutions Act;"Bank" has the meaning ascribed to it under the Bank of Tanzania Act;“bearer negotiable instrument” means a monetary instrument in bearer form such as—(a)traveler’s cheques;(b)negotiable instruments including cheques, promissory notes and money orders that are either in bearer form, endorsed without restriction, made out to a fictitious payee or otherwise in such form that title to that instrument passes upon delivery;(c)incomplete instruments such as cheques, promissory notes and money orders signed, but with the payee’s name omitted;[definition of “bearer negotiable instrument” inserted by section 4(f) of Act 2 of 2022]“bearer shares” means negotiable instruments that accord ownership in a legal person to the person who possesses the bearer share certificate;[definition of “bearer shares” inserted by section 4(f) of Act 2 of 2022]“beneficial owner” means any natural person who ultimately owns or controls the customer, the natural person on whose behalf a transaction or activity is being conducted, a person who exercises ultimate effective control over a legal person or legal arrangement or beneficiary of an insurance policy or other investment linked insurance policy and includes—(a)in the case of a customer being a legal person—(i)the natural person who ultimately owns or controls the legal person through direct or indirect ownership of a majority shares or voting rights or ownership interest in that legal person and such ownership, ownership interest or control also includes possession of bearer shares, the ability to appoint or remove the majority of board members, the chief executive officer or senior management;(ii)a shareholding of five percent or more in the legal person or an ownership interest of five percent or more in the legal person held by a natural person shall be an indication of direct ownership or a sufficient percentage of the shares or voting rights or ownership interest in that legal person, or a shareholding of five percent or more or an ownership interest of five percent or more in the legal person held by a legal person, which is under the control of a natural person, or by multiple legal persons, which are under the control of the same natural person, shall be an indication of indirect ownership;(iii)if, after having exhausted all possible means and provided there are no grounds for suspicion of money laundering, terrorist financing and proliferation financing, no natural person under subparagraph (i) is identified, or if there is any doubt that the natural person identified is the beneficial owner, the natural person who holds the position of senior managing official;(b)in the case of a customer being a trust—(i)the settlor, trustee or the protector;(ii)the beneficiaries, or where the natural person benefiting from the trust has yet to be determined, the class of natural persons in whose main interest the trust is set up or operates; or(iii)any other natural person exercising ultimate control over the trust by means of direct or indirect ownership or by other means;(c)in the case of a customer being any other legal arrangement, the natural person holding equivalent or similar positions to those referred to in subparagraph (b);[definition of “beneficial owner” inserted by section 4 of Act 8 of 2020 and substituted by section 4(a) of Act 2 of 2022]“business relationship” means an arrangement between a reporting person and a customer that is characterised by the following:(a)it is a business, professional or commercial arrangement;(b)the arrangement involves the reporting person setting up a customer account and the exchange of goods, products or services and is facilitated by transactions that are conducted involving that account; or(c)transactions are conducted frequently, habitually or on a regular basis;[definition of “business relationship” inserted by section 4(f) of Act 2 of 2022]"cash dealer" means—(a)a person who carries on a business of an insurer, an intermediary insurance broker, a securities dealer or broker;(b)a person who carries on a business of dealing in gold bullion, or issuing, selling or redeeming traveler’s cheques, money orders or similar instruments, of collecting, holding and delivering or transmitting money;[Cap. 197](c)an operator of a gaming activity;(d)a trustee or a manager of a Collective Investment Scheme; and(e)an operator of a bureau de change;"Chairman" means the Chairman of the National Committee appointed under section 8;“close associate” means—(a)a natural person who is known to have joint beneficial ownership of body corporate, or any other close business relations with the politically exposed person;(b)a natural person who has sole beneficial ownership of a body corporate which is known to have been set up for the de facto benefit of the politically exposed person; or(c)a natural person who is reasonably found or believed to be closely connected with a politically exposed person for any other reason, either socially or professionally;[definition of “close associate” inserted by section 4(f) of Act 2 of 2022]"Commissioner" means the Commissioner of the FIU appointed under section 5;"comparable body" means an overseas Government agency with functions similar to those of the FIU;“competent authority” means any public entity with designated responsibilities for combatting money laundering, terrorist financing or proliferation financing including a regulator, customs authority, a law enforcement agency, licensing agency or authority, FIU and the National Committee;[definition of “competent authority” inserted by section 4(f) of Act 2 of 2022]“customer” means any natural person, legal person or legal arrangement that receives goods, products or services from a reporting person for exchange for money or any other consideration;[definition of “customer” inserted by section 4(f) of Act 2 of 2022]“customer due diligence” includes establishing the identity of the customer, a beneficial owner or a person purporting to act on behalf of the customer, whereby—(a)in the case of a customer, doing any or all of the following, depending on the perceived money laundering, terrorist financing or proliferation financing risk—(i)verifying the identity of the customer using reliable, independent source documents, data or information;(ii)understanding, and where appropriate, obtaining the required information on the nature and purpose of the business relationship;(iii)understanding the occupation of the customer;(iv)understanding the ownership and control structure of the customer who is a legal person or legal arrangement;(v)obtaining information on the source of customer income and funds;(vi)establishing the identity of beneficial owners and taking reasonable measures to verify their identities using reliable, independent source documents, data or information; or(vii)obtaining information that any person purporting to act on behalf of the customer is so authorised and to identify and verify the identity of that person using reliable, independent source documents, data or information;(b)in the case of a beneficial owner, doing any or all of the following, depending on the perceived money laundering, terrorist financing or proliferation financing risk:(i)taking reasonable measures to verify the identity of the beneficial owner using reliable, independent source documents, data or information;(ii)understanding the occupation of the beneficial owner; or(iii)obtaining information on the source of income and funds of the beneficial owner;(c)in the case of a person purporting to act on behalf of the customer, doing any or all of the following, depending on the perceived money laundering, terrorist financing or proliferation financing risk:(i)verifying the identity of the person using reliable, independent source documents, data or information;(ii)understanding the occupation of the person;(iii)understanding the relationship between the person and the customer; or(iv)ascertaining that the person is authorised to act on behalf of the customer; and(d)in all cases above, in paragraphs (a), (b) and (c), reviewing existing records to ensure that they are up-to-date and relevant;[definition of “customer due diligence” inserted by section 4(f) of Act 2 of 2022]“customs” has the meaning ascribed to it under the East African Community Customs Management Act;[Act No. 1 of 2004][definition of “customs” inserted by section 4(f) of Act 2 of 2022]“family member” means an individual who is related to a politically exposed person either directly on consanguinity or through marriage or similar civil forms of relationships or partnership;[definition of “family member” inserted by section 4(f) of Act 2 of 2022]“financial institution” means any person who conducts as a business one or more of the following activities or operations:(a)acceptance of deposits and other repayable funds from the public including private banking and other repayable funds from the public, issuing and managing means of payment, trading in foreign exchange or transferable securities or decentralised virtual currencies exchangers, wallet providers, payments processors or senders, and other virtual currency business models;(b)lending, including consumer credit, mortgage credit, factoring with or without recourse, finance of commercial transactions including forfeiting;(c)financial leasing;(d)mortgage and house financing;(e)money or value transfer services without extending to persons that solely provide messaging or other support systems for transmitting the funds;(f)issuing and managing means of payment including credit cards, debit cards, money orders, cheques, traveler’s cheques, money, bankers' drafts and electronic money;(g)financial guarantees and commitments;(h)dealing in gold bullion;(i)trading in:(i)money market instruments including cheques, bills, certificates of deposit and derivatives;(ii)foreign exchange;(iii)exchange, interest rate and index instruments;(iv)transferable securities; and(v)commodity futures trading;(j)securities dealership, brokerage and securities market intermediation;(k)individual and collective portfolio management;(l)trusteeship and management of collective investment schemes;(m)safekeeping and administration of cash or liquid securities on behalf of other persons;(n)investing, administering or managing funds or money on behalf of other persons;(o)pension fund management;(p)insurance, insurance agency and brokerage; and(q)money and currency changing;[definition of “financial institution” substituted by section 4(a) of Act 2 of 2022]"forfeiture" has the meaning ascribed to it under the Proceeds of Crime Act;[Cap. 256][definition of "forfeiture" inserted by section 4(f) of Act 2 of 2022]“funds” has the meaning ascribed to it under the Prevention of Terrorism Act;[Cap. 19][definition of “funds” inserted by section 4(f) of Act 2 of 2022]"Government" means the Government of the United Republic and where appropriate includes the Revolutionary Government of Zanzibar;"law enforcement agency" means the Police Force, Prevention and Combating of Corruption Bureau, Immigration Services, Tanzania Revenue Authority and any other body dealing with criminal investigations;[definition of "law enforcement agency" amended by section 4(b) of Act 2 of 2022]“legal arrangement” means trusts or other similar arrangements;[definition of “legal arrangement” inserted by section 4(f) of Act 2 of 2022]"Minister" means the Minister for the time being responsible for finance;[definition of "Minister" amended by section 4(c) of Act 2 of 2022]“money laundering” means offences referred to under section 12;[definition of “money laundering” substituted by section 4(a) of Act 2 of 2022]"National Committee" means the National Multi-disciplinary Committee on Anti-Money Laundering Committee established by section 8;“occasional transaction” means a transaction carried out by a reporting person on behalf of a customer with whom it does not have a business relationship and the transaction is carried out otherwise than through an account and it may be a single transaction or a series of transactions in a single operation or several operations that appear to be linked to each other;[definition of “occasional transaction” inserted by section 4(f) of Act 2 of 2022]“politically exposed person” means a natural person—(a)within or outside the United Republic who is or has been entrusted with a prominent public function;(b)who is or has been entrusted with a prominent function in an international organisation including a member of senior management such as a member of the board of directors, the chief executive officer, director, head of department, their deputies and equivalent functions,and includes family members and close associates of such a natural person;[definition of “politically exposed person” substituted by section 4(a) of Act 2 of 2022]“predicate offence” means a serious offence as defined in the Proceeds of Crime Act;[Cap. 256][definition of “predicate offence” substituted by section 4(a) of Act 2 of 2022]“proceeds of crime” has the meaning ascribed to it under the Proceeds of Crime Act;[Cap. 256][definition of “proceeds of crime” inserted by section 4(f) of Act 2 of 2022]“proliferation financing” means an act by any person who by any means directly or indirectly, renders help or provides in whole or in part any assets, funds, economic resources, technology or services to any proliferation of weapons of mass destruction course or to any person or jurisdiction or for the benefit of any person designated by the United Nations Security Council to acquire, possess, broker, manufacture, develop, store, transport, convey, transfer, import or export nuclear, chemical or biological weapons and their means of delivery or related materials including technologies and dual use goods used for non legitimate purpose;[definition of “proliferation financing” inserted by section 4(f) of Act 2 of 2022]“prominent public function” or “prominent function” means—(a)in the case of Government and public sector functions in the United Republic, an office or function held by a public leader mentioned in the Public Leadership Code of Ethics Act and any person in the capacity of deputy of the identified leader;[Cap. 398](b)in the case of a foreign government or jurisdiction, an office or function held by heads of state or government, senior politicians, senior executives of state owned corporations or agencies, high level and senior functions in the foreign states, governments or diplomatic missions, foreign institutions and international organisations affiliated to the United Republic and foreign countries and jurisdictions including high commissioners, ambassadors and their deputies, military and other attaches, directors, assistant directors, managers and assistant managers and other senior and principal officers; or(c)any other prominent function which the Minister may, by notice published in the Gazette, specify;[definition of “prominent public function” or “prominent function” inserted by section 4(f) of Act 2 of 2022]"property" has the meaning ascribed to it under the Proceeds of Crime Act;[Cap. 256]“reasonable measures” means appropriate measures which are commensurate with the money laundering, terrorist financing or proliferation financing risk;[definition of “reasonable measures” inserted by section 4(f) of Act 2 of 2022]"regulator" includes, the:(a)Bank of Tanzania;(b)Capital Markets and Securities Authority;(c)Tanzania Insurance Regulatory Authority;(d)Gaming Board of Tanzania;(e)Registrar of Societies;[paragraph (e) substituted by section 4(d)(i) of Act 2 of 2022](f)Registrar of Cooperatives;(g)Registrar of Titles;(h)Registrar of Non-Governmental Organisations;(i)Registrar of Political Parties;(j)Energy and Water utilities Regulatory Authority;(k)Tanzania Communication Regulatory Authority;(l)Business Registration and Licensing Agency;(m)Tanzania Investment Centre;(n)Tanganyika Law Society;[paragraph (n) inserted by section 4(d)(ii) of Act 2 of 2022](o)Architects and Quantity Surveyors Registration Board;[paragraph (o) inserted by section 4(d)(ii) of Act 2 of 2022](p)National Board of Accountants and Auditors;[paragraph (p) inserted by section 4(d)(ii) of Act 2 of 2022](q)Registration, Insolvency and Trusteeship Agency; and[paragraph (q), previously paragraph (n), renumbered by section 4(d)(iii) of Act 2 of 2022](r)any other regulatory authorities or agencies which the Minister may, by order published in the Gazette, specify;[paragraph (r), previously paragraph (o), renumbered by section 4(d)(iii) of Act 2 of 2022][Please note: we have corrected the renumbering of paragraphs (n)-(o) in section 4(d) of Act 2 of 2022.]"reporting person" means—(a)banks and financial institutions;(b)cash dealer;(c)an accountant, real estate agent, auditor, tax adviser dealer in precious stones work of arts or metals;[paragraph (c) amended by section 4(e)(i) of Act 2 of 2022](d)trust and company service provider;[paragraph (d) substituted by section 4(e)(ii) of Act 2 of 2022](e)motor vehicle dealer;[paragraph (e) substituted by section 4(e)(ii) of Act 2 of 2022](f)clearing and forwarding agent;[paragraph (f) inserted by section 4(e)(ii) of Act 2 of 2022](g)advocates, notaries and other independent legal professionals when:(i)assisting clients in preparing or executing transactions involving:(aa)the purchase or sale of real property or commercial enterprises;(bb)management of funds, securities or other assets which belong to a client;(cc)the opening or management of bank accounts, saving accounts or portfolios(dd)the organisation of contributions required to create, manage or direct corporations or legal entities;(ee)the creation, management or direction of corporations orlegal entities; and(ff)the buying or selling of business entities;(ii)acting on behalf of a client in any financial or real estate transaction;[paragraph (g), previously paragraph (f), amended by section (4)(e)(iii) of Act 2 of 2022 and renumbered by section 4(e)(v) of Act 2 of 2022](h)pension funds managers, securities market intermediaries, financial leasing entities, microfinance service providers except for community microfinance groups classified as Tier 4 in the Microfinance Act and companies and financing housing companies;[Cap. 407][paragraph (h), previously paragraph (g), amended by section 4(e)(iv) of Act 2 of 2022 and renumbered by section 4(e)(v) of Act 2 of 2022](i)auctioneers; and[paragraph (i), previously paragraph (h), renumbered by section 4(e)(v) of Act 2 of 2022](j)any other person who the Minister may, by notice published in the Gazette, specify;[paragraph (j), previously paragraph (i), renumbered by section 4(e)(v) of Act 2 of 2022][Please note: we have corrected the renumbering of paragraphs (f)-(i) in section 4(e) of Act 2 of 2022.]“risk assessment” means identifying, assessing and understanding risks and documenting the process and the findings or results;[definition of “risk assessment” inserted by section 4(f) of Act 2 of 2022]“senior management” means natural persons within a body corporate at the highest level of management who have the day to day task of managing the body corporate and includes directors, chief executive officers, their deputies and where appropriate, members of the board of directors or of equivalent function;[definition of “senior management” inserted by section 4(f) of Act 2 of 2022]“terrorist financing” means—(a)the provision of finance or economic resources or making available financial or related services to—(i)a terrorist, terrorist group, terrorist entity, terrorist course or a terrorist act;(ii)an individual, a group or entity that is concerned with a terrorist, terrorist group, terrorist entity, terrorist course or a terrorist act;(b)conducting a financial transaction or facilitating a financial transaction directly or indirectly, in order to deal with property that is owned or controlled by a terrorist, terrorist group or terrorist entity;(c)conducting financial transaction or facilitating a financial transaction directly or indirectly, in order to deal with property on behalf of a terrorist, terrorist group or terrorist entity;(d)financing or facilitating travel of any individual or a group of individuals to a country other than their country of residence or nationality in order to participate in a terrorist course, terrorist training or terrorist act, or in order to directly or indirectly conduct, perpetrate, plan or prepare terrorist acts;(e)organising or directing others to commit any of the acts in paragraphs (a), (b), (c) or (d) or participating in any of those acts as an accomplice; or(f)an attempt to commit any of the acts in paragraphs (a), (b), (c), (d) or (e);[definition of “terrorist financing” substituted by section 4(a) of Act 2 of 2022]“trust and company service provider” means any person who, by way of business, provides any of the following services:(a)the formation of body corporate;(b)acting as, or arranging for another person to act as, a director, secretary or a similar position in relation to a body corporate;(c)providing a registered office, business address, correspondence or administrative address and other related services for a body corporate;(d)acting as, or arranging for another person to act as, a trustee of a trust or a similar legal arrangement; or(e)acting as, or arranging for another person to act as, a nominee shareholder for another person other than a company listed in a regulated market that is subject to disclosure requirements in accordance with the laws of the United Republic or subject to equivalent international standards;[definition of “trust and company service provider” inserted by section 4(f) of Act 2 of 2022]“virtual asset” means a digital representation of value that can be digitally traded or transferred and can be used for payment or investment purposes and is recognised by the government of the United Republic and does not include digital representations of fiat currencies, securities and other financial assets that are already covered in the laws of the United Republic;[definition of “virtual asset” inserted by section 4(f) of Act 2 of 2022]“virtual asset service provider” means any person who conduct one or more of the following activities or operations for or on behalf of a customer:(a)exchange between virtual assets and fiat currencies;(b)exchange between one or more forms of virtual assets;(c)transfer of virtual assets;(d)safekeeping or administration of virtual assets or instruments enabling control over virtual assets; and(e)participation in and provision of financial services related to an issuer’s offer or sale of a virtual asset;[definition of “virtual asset service provider” inserted by section 4(f) of Act 2 of 2022][Act Nos. 6 of 2008 s. 41; 1 of 2012 s. 3; 1 of 2013 s. 4; 14 of 2015 s. 57; Cap. 4 s. 8]Part II – The Financial Intelligence Unit and the National Committee
4. Establishment of Financial Intelligence Unit
5. Appointment of Commissioner
6. Powers and duties of FIU
7. Employees of FIU
8. Establishment and composition of National Committee
9. Functions of National Committee
The functions of the National Committee shall be to—10. Meetings of National Committee
11. Allowances and remunerations
There shall be paid to the members of the National Committee such allowances or remunerations and other payments as shall be determined by the Minister.Part III – Prohibition of money laundering
12. Offence of money laundering
13. Penalties for acts of money laundering
14. Offences by corporate bodies
Part IV – Supervision of anti-money laundering, countering terrorist financing and proliferation financing
[part heading substituted by section 11 of Act 2 of 2022]15. Undertaking risk assessment, risk mitigation measures and allocation of resources
15A. Reporting person to conduct customer due diligence
16. Reporting persons to establish and maintain customer records
17. Reporting persons to report suspicious transactions
18. Reporting persons to establish and maintain internal reporting procedures
19. Reporting persons to implement group-wide programmes
19A. Administrative sanctions
Where any reporting person fails to comply with the provisions of section 15, 16, 17 or 18 of this Act, the FIU or regulator shall impose any of the following administrative sanctions:20. Tipping off
21. Secrecy obligation overridden
22. Protection of reporting persons, witnesses and informers
23. Obligation to report physical cross border transportation of cash or bearer negotiable instruments
23A. Regulator’s obligation
Part V – Financial provisions
24. Sources of fund
The funds of the FIU shall consist of—25. Financial year
The Financial year of the FIU shall be the period of twelve calendar months beginning on the first day of July of every year.26. Accounts and audit
Part VI – Miscellaneous provisions
27. Immunity
No action shall be taken against the FIU, the Commissioner, members of the National Committee and employees of FIU in respect of any act done or omission made by the FIU, Commissioner, members of the Committee or any employee of the FIU in good faith, in the exercise of the functions conferred on the FIU under this Act and the Criminal Procedure Act.[Cap. 20]28. Application of proceeds of crime
The procedure in relation to arrest, information gathering powers, trial, determination, confiscation, forfeiture, pecuniary penalty and restraining orders and control of property liable to confiscation, shall be in accordance with the provisions of the Proceeds of Crime Act and the Criminal Procedure Act.[Cap. 256; Cap. 20]28A. Disclosure of information
Any person who is or was engaged in the administration of this Act and discloses any information acquired by that person by virtue of his position to unauthorised person, commits an offence.[Act No. 1 of 2012 s. 19]28B. General penalty
28C. Court jurisdiction over foreigner
28D. Maintenance of statistics
29. Regulations
History of this document
14 March 2025 amendment not yet applied
08 March 2022 this version
Amended by
Anti-Money Laundering (Amendment) Act, 2022
01 July 2020
Amended by
Finance Act, 2020
Read this version
30 November 2019
Consolidation
Read this version
08 July 2016
01 September 2015
Amended by
Cybercrimes Act, 2015
10 May 2013
24 February 2012
Amended by
Anti-Money Laundering (Amendment) Act, 2012
01 February 2009
Amended by
Anti-trafficking in Persons Act, 2008
01 July 2007
12 January 2007
Cited documents 0
Documents citing this one 80
Judgment 74
Gazette 3
Act 1
1. | Cybercrimes Act, 2015 | 21 citations |
Law Reform Report 1
1. | Review of Evidence Law in Tanzania |
Manual 1
1. | Criminal Prosecutions Case Manual |
Subsidiary legislation
Title
|
|
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Anti-Money Laundering Regulations, 2022 | Government Notice 397 of 2022 |
Anti-Money Laundering (Electronic Funds Transfer and Cash Transaction Reporting) Regulations, 2019 | Government Notice 420 of 2019 |
Anti-Money Laundering (Amendment) Regulations, 2019 | Government Notice 419 of 2019 |
Anti-Money Laundering (Cross-Border Declaration of Currency and Bearer Negotiable Instruments) Regulations, 2016 | Government Notice 268 of 2016 |
Anti-Money Laundering (Amendment) Regulations, 2012 | Government Notice 37 of 2012 |