ADEQUACY OF THE LEGAL FRAMEWORK GOVERNING THE FINANCIAL INTELLIGENCE UNIT (FIU) IN TANZANIA FOR COMBATING MONEY LAUNDERING

This paper discusses the legal and institutional framework governing the Financial Intelligence Unit (FIU) in Tanzania. It evaluates its adequacy in combating money laundering effectively. Drawing on a doctrinal and law context. It surveys principal laws, such as the Anti-Money Laundering Act, the Proceeds of Crime Act, the Economic and Organised Crime Control Act, the Prevention and Combating Corruption Bureau Act, and related legislation covering terrorism financing and other predicate offences. It also evaluates institutional arrangements, including the FIU’s mandate, powers, independence, and supervisory and enforcement tools; reporting persons; and coordination among law enforcement and regulatory. The analysis finds that Tanzania’s legal framework has several strong features with comprehensive definitions of money laundering and predicate offences, legal provisions for suspicious transaction reporting, mechanisms for asset seizure and forfeiture, reporting obligations for a broad array of reporting persons, and mandates for cooperation both domestically and internationally. Nonetheless, the framework faces significant challenges that undermine its effectiveness. These include gaps in enforcement, resource constraints, delays in prosecution, weak capacity in investigative and supervisory bodies, issues of beneficial ownership transparency, political and institutional interference, and sometimes inadequate guidance or compliance by reporting persons. The paper concludes that while Tanzanian law provides a solid foundation for the FIU to function, it is not fully sufficient in its current form. To improve, Tanzania needs to strengthen implementation and enforcement, enhance capacity (human, technological, and financial), close legal loopholes, increase reporting persons’ compliance, and ensure greater institutional autonomy and coordination. The findings have implications for policy reforms and for aligning Tanzania’s AML/CFT regime with international best practices.