Tanzania Country Summary

FATF Status

Tanzania is on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement - 21 February 2025

In October 2022, Tanzania made a high-level political commitment to work with the FATF and ESAAMLG to strengthen the effectiveness of its AML/CFT regime. At its February 2025 plenary, the FATF made the initial determination that Tanzania has substantially completed its action plan and warrants an on-site assessment to verify that the implementation of AML/CFT reforms has begun and is being sustained, and that the necessary political commitment remains in place to sustain implementation in the future.

Tanzania has made the following key reforms: (1) improving risk-based supervision of FIs and DNFBPs, including by conducting inspections on a risk-sensitive basis and applying effective, proportionate, and dissuasive sanctions for non-compliance; (2) demonstrating authorities’ capability to effectively conduct a range of investigations and prosecutions of ML in line with the country’s risk profile; (3) demonstrating that LEAs are taking measures to identify, trace, seize, and confiscate proceeds and instrumentalities of crime; (4) conducting a comprehensive TF Risk Assessment and begin implementing a comprehensive national CFT strategy as well as demonstrating capability to conduct TF investigations and pursue prosecutions in line with the country’s risk profile; (5) increasing awareness of the private sector and competent authorities on TF and PF-related TFS; and (6) carrying out the TF risk assessment for NPOs in line with the FATF Standards and using it as a basis to develop an outreach plan.

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Tanzania was undertaken in 2024. According to that Evaluation, Tanzania was deemed Compliant for 7 and Largely Compliant for 13 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness ratings.

Tanzania has established laws and institutions to combat corruption, yet it remains a significant issue despite efforts like the National Anti-Corruption Strategy and the implementation of electronic services to reduce human interaction in government processes. The country is also a hub for various criminal activities, including human trafficking, counterfeit goods trade, and drug trafficking, with organized crime networks operating both locally and internationally. While the government has made strides in addressing these challenges, issues such as corruption in the judicial system and limited resources for civil society hinder effective responses.

Tanzania achieved lower-middle income country status in July 2020, driven by two decades of sustained economic growth supported by a solid macroeconomic foundation and rich natural resources. Despite facing external shocks such as the COVID-19 pandemic and geopolitical tensions, the economy demonstrated resilience, with growth projected at 5.4 percent in 2024 following a recovery to 5.2 percent in 2023. The government actively encourages foreign direct investment, though challenges such as regulatory bureaucracy and tax administration persist.

Tanzania's investment climate is characterized by a government that actively welcomes foreign direct investment (FDI) while facing challenges such as regulatory bureaucracy, inconsistent tax administration, and inefficiencies in land acquisition and infrastructure. Recent reforms, including the 2022 Investment Act, aim to improve the investment environment by enhancing the role of the Tanzania Investment Centre and streamlining processes, although significant legislative obstacles remain. Despite these efforts, issues like corruption and a lack of trust between the government and private sector continue to hinder investor confidence.