Tanzania AML & Sanctions Compliance - ANQA

Tanzania AML & Sanctions Compliance

Navigate Tanzania's evolving financial regulatory landscape with Anqa's comprehensive compliance solutions designed for East Africa's emerging financial hub.

Regulatory Framework

Tanzania's AML/CFT framework is primarily governed by the Anti-Money Laundering Act and the Prevention of Terrorism Act, with regulations issued by:

  • Financial Intelligence Unit (FIU) - Financial sector supervision
  • Bank of Tanzania (BoT) - Banking sector regulation
  • Capital Markets and Securities Authority (CMSA) - Securities sector regulation
  • Tanzania Insurance Regulatory Authority (TIRA) - Insurance sector regulation

FATF Status

★ ★ ★ ★ ★
Partially Compliant

Tanzania is a member of ESAAMLG and has made progress in addressing technical deficiencies in its AML/CFT framework. However, effectiveness of implementation remains a challenge, particularly in the supervision of non-bank financial institutions.

Compliance Requirements

Core Obligations

  • CDD/KYC: Financial institutions must identify and verify customers using reliable, independent sources. Enhanced due diligence required for high-risk customers.
  • Transaction Monitoring: Ongoing monitoring of transactions with particular attention to complex, unusual, or large transactions.
  • Mobile Money: Specific regulations for mobile money services, which have seen significant growth in Tanzania.
  • Record Keeping: Minimum 5-year retention period for all customer records and transactions.
  • Reporting: Suspicious Transaction Reports (STRs) must be filed with the FIU. Currency Transaction Reports required for transactions exceeding TZS 10 million.

Key Challenges

  • Cash Economy: Predominantly cash-based with limited financial inclusion.
  • Natural Resource Risks: Mining and extractive industries presenting elevated money laundering risks.
  • Cross-Border Transactions: Porous borders with multiple countries facilitating illicit financial flows.
  • Mobile Money Growth: Rapid expansion of mobile financial services creating regulatory challenges.
  • Limited Supervision Capacity: Resource constraints for effective supervision across all financial sectors.

Sanctions Considerations

Tanzania implements UN sanctions through domestic legislation. Financial institutions must screen against international sanctions lists, with particular attention to transactions related to the mining sector, which has historically been associated with sanctions evasion activities in the region.

Tanzania's proximity to conflict-affected regions necessitates enhanced due diligence for cross-border transactions, particularly with the Democratic Republic of Congo and Burundi.

Key Compliance Challenges

Understanding the unique obstacles facing financial institutions in Tanzania

1

Regulatory Complexity

Tanzania's financial system is regulated by multiple authorities including FIU, BoT, CMSA, and TIRA, each with their own AML/CFT requirements, creating a complex compliance landscape for financial institutions operating across different sectors.

2

Mobile Money Services

The rapid growth of mobile money services requires careful management of new payment channels while ensuring compliance with both AML regulations and data protection requirements.

3

Beneficial Ownership

Complex corporate structures and nominee arrangements create challenges in identifying and verifying ultimate beneficial owners, particularly in wealth management and private banking.

4

Sanctions Compliance

Tanzania's position as a regional financial hub requires sophisticated sanctions screening capabilities, particularly for trade finance, mobile money, and correspondent banking relationships.

5

Regulatory Expectations

Tanzanian regulators maintain high expectations for AML/CFT compliance, requiring sophisticated transaction monitoring systems, regular independent audits, and continual enhancements to address emerging risks.

6

Reputational Risk

Tanzania's position as a leading financial center in East Africa creates heightened reputational risks for institutions operating in the jurisdiction, with potential AML/CFT violations attracting significant regulatory attention and media coverage.

Anqa's Approach for Tanzania

Our comprehensive AML solution tailored for Tanzania's unique regulatory landscape and market requirements.

1

Digital KYC & Onboarding Platform

Electronic KYC integration with Tanzania's identity verification systems, centralized repository, and assisted onboarding tools for agents and field staff.

2

Customer Risk Assessment Engine

Five-dimensional risk classification with Tanzania-specific parameters and behavior-driven risk adjustments aligned with local regulatory requirements.

3

Sanctions & Watchlist Screening

Comprehensive screening with Levenshtein and phonetic matching algorithms optimized for Tanzania's naming conventions and local watchlists.

4

Mobile Money Compliance

Specialized compliance tools for mobile money operators with enhanced transaction monitoring and source of funds documentation.

5

Compliance Workflow Platform

Centralized case management with customizable workflows aligned with Tanzania's regulations and reporting requirements.

6

Deployment & Pricing

No setup fees, modular pricing, cloud-based with scalable licensing (user or transaction-based).

Tanzania — AML & Compliance FAQs

  • In Tanzania, AML compliance is regulated by the Financial Intelligence Unit (FIU Tanzania) and the Bank of Tanzania (BoT). These agencies oversee the enforcement of anti-money laundering and counter-terrorism financing regulations across banks, fintechs, mobile money operators, and other reporting entities, ensuring adherence to Tanzania’s national AML framework.

  • Businesses operating in Tanzania, including fintechs and mobile money providers, must implement Know Your Customer (KYC) procedures, monitor transactions for suspicious activity, maintain comprehensive transaction records, and submit Suspicious Transaction Reports (STRs) to FIU Tanzania. Following updated FIU Tanzania regulations and understanding reporting STRs in Tanzania 2025 are crucial for achieving full Tanzania AML compliance.

  • A Suspicious Transaction Report (STR) must be filed with the Financial Intelligence Unit (FIU Tanzania) whenever there is reasonable suspicion that a transaction involves money laundering, terrorism financing, or other illicit activity. Filing should occur promptly through FIU Tanzania’s designated reporting platforms to ensure adherence to Tanzania AML compliance requirements.

  • Yes. Fintechs, e-wallet providers, and mobile money operators are fully subject to Tanzania AML compliance regulations. They must comply with mobile money AML laws Tanzania, which mandate risk-based KYC onboarding, ongoing transaction monitoring, STR filing, and sanctions screening procedures to manage emerging financial crime risks effectively.

  • Anqa Compliance offers mobile-first, affordable AML solutions designed for Tanzanian SMEs, fintechs, and financial institutions. Our platform simplifies KYC onboarding according to KYC onboarding Tanzania standards, automates transaction monitoring, and streamlines STR reporting to FIU Tanzania — helping businesses meet evolving Tanzania AML compliance obligations confidently and efficiently.

Dig Deeper – Country Compliance in Focus

Gain country-specific expertise with Anqa’s tailored AML and sanctions intelligence. Leverage our technology, risk-based strategies, and deep regional knowledge to stay ahead of regulatory expectations.

View Country Compliance Profile