FATF status

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

Latest FATF Statement - 25 October 2024

Since October 2022, when Tanzania made a high-level political commitment to work with the FATF and ESAAMLG to strengthen the effectiveness of its AML/CFT regime, Tanzania has taken steps towards improving its AML/CFT regime, including by improving the 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; demonstrating authorities’ capability (including through improving the use of financial intelligence and availability of statistics) to effectively conduct a range of investigations and prosecutions of ML in line with the country’s risk profile; developing and beginning to implement a comprehensive national CFT strategy; and, using the recently completed TF risk assessment for NPOs as a basis to develop an outreach and training plan. Tanzania should continue to work on implementing its action plan to address its remaining strategic deficiency by demonstrating a capability to conduct TF investigations and pursue prosecutions in line with the country’s risk profile.

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, including the Prevention and Combating of Corruption Bureau and the Ethics Secretariat, but corruption remains a significant issue across various sectors. Despite efforts such as the National Anti-Corruption Strategy and the implementation of electronic services to limit human interaction, public perception of corruption is still high, with Transparency International scoring Tanzania 38 out of 100 for corruption perception in 2022. Critics argue that while initiatives exist, deeper structural issues continue to allow corruption to thrive, impacting investment and governance.

Tanzania achieved lower-middle income country status in July 2020, supported by two decades of sustained economic growth and a diverse economy resilient to external shocks. Despite facing challenges from global crises, the economy is recovering, with growth projected to reach 5.4 percent in 2024, aided by sound fiscal policies and rich natural resources.

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 land acquisition issues. Recent reforms, including the 2022 Investment Act, aim to enhance the investment environment by streamlining processes and improving coordination among government agencies. However, significant legislative obstacles remain, particularly in sectors like mining and natural resources, which continue to deter potential investors.