As part of more robust anti-money laundering measures, the Tanzanian government has recently released the new Anti-Money Laundering (Electronic Funds Transfer and Cash Transaction Reporting) Regulations, 2019 (the Regulations). The Regulations introduce stricter reporting guidelines, as well as mandatory reporting formats.
This Finance Briefing provides an overview of some of the relevant provisions of the Regulations to ensure professionals are more aware of their heightened obligations.
NO. | RELEVANT Provision | OVERVIEW |
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1. |
Information to be contained in Electronic funds transfer and currency transaction (regulation 4 and the schedules of the Regulations) |
This provision requries that banks, accountancy firms and other similar persons (Reporting Persons) collect a range of information whenever they process electronic funds transfers (either domestic or international) or currency transactions (any cash-based transaction involving deposit, withdrawal, exchange, payment or receipt of currency in Tanzanian Shillings or any foreign currency). Amongst other information, the following must be collected:
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2. |
Obligation to report currency transactions and electronic fund transfers (regulation 5 of the Regulations) |
This provision requires that Reporting Persons report to the Financial Intelligence Unit, any currency transaction in Tanzanian Shillings or foreign currency that is equivalent to US $10,000 or more in the course of a single transaction. This provision further asserts that Reporting Persons must report to the Financial Intelligence Unit, an electronic funds transfer involving Tanzanian Shillings or foreign currency that is equivalent to US $1,000 or more, in the course of a single transaction. When reporting currency transactions or electronic funds transfers, Reporting Persons shall fill in and provide the information set out in the Schedules to the Regulations. In determining the exchange rate for the purposes of knowing whether to report a particular transaction or not, Reporting Persons must pay regard to the official conversion rate of the Bank of Tanzania that is in effect at the time of the transaction. |
3. |
Circumstances where attorneys, notaries and independent legal professionals shall report currency transactions (regulation 6 of the Regulations) |
This provision requires that every attorney, notary or independent legal professional report to the Financial Intelligence Unit, when they engage in the following types of activities:
The Regulations make it clear that the above shall apply to all sole practitioners, partners or employed professonals within professional firms when they engage in any of the aforementioned activities. |
4. |
Circumstances where accountants shall report currency transactions (regulation 7 of Regulations) |
This provision requires that every accountant or accounting firm report to the Financial Intelligence Unit, when they engage in the following types of activities:
The Regulations make it clear that the above shall apply to all sole practitioners, partners or employed accountants within accounting firms when they engage in any of the aforementioned activities on behalf of their employer. |
5. |
An ordering institution to maintain information (regulation 9 of Regulations) |
If a Reporting Person transfers funds on behalf of a client, they will be regarded as an "ordering institution". This provision requires that ordering institutions maintain all information that it collects from its clients for a minimum period of 10 years. |
6. |
Format and period of reporting (regulation 12 of Regulations) |
This provision requires that all Reporting Persons report to the Financial Intelligence Unit, electronically or as otherwise required by the Financial Intelligence Unit, within 5 working days of the date of the relevant transaction or transfer. |
7. |
Imposition of administration sanctions (regulation 13 of Regulations) |
If Reporting Persons fail to comply with the Regulations, the Financial Intelligence Unit or the regulator may, after providing notice in writing to the Reporting Persons, impose any of the following administrative sanctions:
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As at the date of this Finance Briefing, the Regulations are publicly available.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.