11 June 2019
TANZANIA: New Regulations Introduced Affecting International Electronic Payments
The Tanzanian government introduced new regulations on 24 May 2019 designed to clamp down on money laundering. They list the new information and compliance requirements that must now accompany all international digital payments over a certain amount. The new requirements are contained in the Anti-Money Laundering (Electronic Funds Transfer and Cash Transactions Reporting) Regulations 2019.
Every electronic fund transfer must now be accompanied with detailed transaction information, including the location and purpose of the transaction, information on the person conducting the transaction, including their nationality, date of birth and occupation, and full particulars and the address of the beneficiary.
It is also now mandatory for every “Reporting Person” to notify Tanzania’s Financial Intelligence Unit (FIU) under the Ministry of Finance and Planning of any single currency transaction involving either Tanzanian Shillings or the foreign currency equivalent of US$10,000 or above; and any single electronic funds transfer of more than US$1,000.
A “Reporting Person” includes banks and financial institutions, cash dealers, accountants, real estate dealers, dealers in precious stones, work of arts, or metal, regulators, customs officers, attorneys, notaries and other independent legal professionals, and auctioneers. They are now required to report any appropriate currency transactions when helping their clients prepare or execute transactions, such as the purchase or sale of property or commercial enterprises, management of funds, opening bank accounts, or buying and selling of business entities.
The regulations also require intermediary institutions in such transactions to maintain all originator and beneficiary information that accompanies a wire transfer; keep a record for at least ten years of all the information from the ordering institution or another intermediary institution; have risk-based policies; and to have procedures for determining when to execute, reject, or suspend an electronic funds transfer that lacks the required originator or beneficiary information.
Gaming activity operators have also been specifically targeted, and are now required to report cash transactions, including cash received from customers, cash disbursed to a customer redeeming chips, tokens or plaques, and front cash withdrawals, or payments on bets including slot jackpots.
An electronic funds transfer report or currency transaction report must be submitted to the FIU within five working days of the transaction. The regulations also stipulate a range of penalties that the FIU can impose to punish non-compliance. These include substantial fines and the suspension of business licences.
An English-language copy of the regulations is available here.