The Anti-Money Laundering Act, Chapter 423 [Principal Legislation], Revised Edition 2023

1. Short title. ed ut

2. Application. rib

3. Interpretation. st di or ed PART II uc THE FINANCIAL INTELLIGENCE UNIT AND od pr THE NATIONAL COMMITTEE re be

4. Establishment of Financial Intelligence Unit. ay m

5. Appointment of Commissioner. ok bo

6. Powers and duties of FIU. is

7. Employees of FIU. th of

8. Establishment and composition of National Committee. rt pa

9. Functions of National Committee. o .N

10. Meetings of National Committee. d ve

11. Allowances and remunerations. r se re s ht PART III rig PROHIBITION OF MONEY LAUNDERING ll .A a

12. Offence of money laundering. ni za 13. an Penalties for acts of money laundering. fT

14. Offences by corporate bodies. to en n m er ov G 25 20 © 567 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] PART IV SUPERVISION OF ANTI-MONEY LAUNDERING, COUNTERING TERRORIST FINANCING AND PROLIFERATION FINANCING

15. Undertaking risk assessment, risk mitigation measures and allocation of resources. . AG

16. Reporting person to conduct customer due diligence. O

17. Reporting persons to establish and maintain records. of n io

18. Reporting persons to report suspicious transactions. s is m

19. Reporting persons to establish and maintain internal reporting procedures. er tp

20. Reporting persons to implement group wide programmes. ou

21. Administrative sanctions. ith w

22. Tipping off. ed ut

23. Secrecy obligation overridden. rib st

24. Protection of reporting persons, witnesses and informers. di or

25. Obligation to report physical cross border transportation of cash or ed bearer negotiable instruments. uc od

26. Regulator’s obligation. re pr be PART V ay m FINANCIAL PROVISIONS ok bo

27. Sources of fund. is th

28. Financial year. of

29. Accounts and audit. rt pa o .N PART VI d ve MISCELLANEOUS PROVISIONS r se re

30. Immunity. s ht rig

31. Application of proceeds of crime. ll .A

32. Disclosure of information. a ni

33. General penalty. za an

34. Court jurisdiction over foreigner. fT

35. Maintenance of statistics. to en

36. Regulations. n m er ov G 25 20 © 568 <!-- page break --> CHAPTER 423 THE ANTI-MONEY LAUNDERING ACT An Act to make better provisions for the prevention and prohibition of . AG O money laundering, terrorist financing and proliferation financing, to of n provide for the disclosure of information on money laundering, terrorist sio is financing and the proliferation financing, to establish a Financial m er tp Intelligence Unit and the National Multi-Disciplinary Committee on ou Anti-Money Laundering, Counter Terrorist Financing and Counter ith w Proliferation Financing and to provide for matters related thereto.1 ed ut rib [1st July, 2007] st di [GN. No. 160 of 2007] or Acts Nos. ed 12 of 2006 uc od 6 of 2008 1 of 2012 pr re 1 of 2013 be 14 of 2015 ay m 4 of 2016 ok 8 of 2020 bo 2 of 2022 is th of rt pa o PART I d .N ve PRELIMINARY PROVISIONS1 r se re s ht

1. This Act may be cited as the Anti-Money Laundering Act. rig Short title ll .A a

2.–(1) This Act shall, subject to subsection (2), apply to ni Application za Acts Nos. an Mainland Tanzania. fT 1 of 2012 s. 2; to 2 of 2022 s. 3 (2) This Act shall apply to Tanzania Zanzibar in respect en of Part II which relates to Financial Intelligence Unit and n m er the National Multidisciplinary Committee on Anti-Money ov G Laundering, Counter Terrorist Financing and Counter 25 20 Proliferation Financing. © 1 The long title is amended by Act No. 2 of 2022 under section 2. 569 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] Interpretation 3. In this Act, unless the context otherwise requires- Acts Nos. 6 of 2008 s. 41; “Act” means the Anti-Money Laundering Act; 1 of 2012 s. 3; “arrangement” has the meaning ascribed to it under the 1 of 2013 s. 4; 14 of 2015 s. 57; Income Tax Act; “bank” has the meaning ascribed to it under the Banking . 8 of 2020 s. 4; AG 2 of 2022 s. 4; O and Financial Institutions Act; of Cap. 332 n Cap. 197 “Bank” has the meaning ascribed to it under the Bank of io s is Tanzania Act; m er tp “bearer negotiable instrument” means a monetary ou instrument in bearer form such as- ith w (a) traveler’s cheques; ed ut rib (b) negotiable instruments including cheques, promissory st di notes and money orders that are either in bearer form, or ed endorsed without restriction, made out to a fictitious uc od payee or otherwise in such form that title to that re pr instrument passes upon delivery; be (c) incomplete instruments such as cheques, promissory ay m notes and money orders signed, but with the payee’s ok bo name omitted; is th “bearer shares” means negotiable instruments that accord of rt ownership in a legal person to the person who possesses pa o .N the bearer share certificate; d ve “beneficial owner” means a natural person who ultimately r se re owns or controls the customer, the natural person on s ht whose behalf a transaction or activity is being conducted, rig ll a person who exercises ultimate effective control over a a.A ni legal person or legal arrangement or beneficiary of an za an insurance policy or other investment linked insurance fT to policy and includes- en m (a) in the case of a customer being a legal person- n er (i) the natural person who ultimately owns or ov G controls the legal person through direct or indirect 25 20 ownership of a majority shares or voting rights or © ownership interest in that legal person and such ownership, ownership interest or control also includes possession of bearer shares, the ability to 570 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] appoint or remove the majority of board members, the chief executive officer or senior management; (ii) a shareholding of five percent or more in the legal person or an ownership interest of five percent or more in the legal person held by a natural . AG O person shall be an indication of direct ownership of n or a sufficient percentage of the shares or voting io s is rights or ownership interest in that legal person, m er tp or a shareholding of five percent or more or an ou ownership interest of five percent or more in the ith w legal person held by a legal person, which is under ed ut rib the control of a natural person, or by multiple legal st di persons, which are under the control of the same or ed natural person, shall be an indication of indirect uc od ownership; re pr (iii) if, after having exhausted all possible means and be provided there are no grounds for suspicion ay m of money laundering, terrorist financing and ok bo proliferation financing, no natural person under is th subparagraph (i) is identified, or if there is any of rt doubt that the natural person identified is the pa o .N beneficial owner, the natural person who holds d ve the position of senior managing official; r se re (b) in the case of a customer being a trust- s ht (i) the settlor, trustee or the protector; rig ll (ii) the beneficiaries, or where the natural person .A a ni benefiting from the trust has yet to be determined, za an the class of natural persons in whose main interest fT to the trust is set up or operates; or en m (iii) any other natural person exercising ultimate n er control over the trust by means of direct or ov G indirect ownership or by other means; 25 20 (c) in the case of a customer being any other legal © arrangement, the natural person holding equivalent or similar positions to those referred to in subparagraph (b); 571 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] “business relationship” means an arrangement between a reporting person and a customer that is characterised by the following: (a) it is a business, professional or commercial arrangement; (b) the arrangement involves the reporting person setting . AG O up a customer account and the exchange of goods, of n products or services and is facilitated by transactions io s is that are conducted involving that account; or m er tp (c) transactions are conducted frequently, habitually or on ou a regular basis; ith w “cash dealer” means- ed ut rib (a) a person who carries on a business of an insurer, an st di intermediary insurance broker, a securities dealer or or ed broker; uc od (b) a person who carries on a business of dealing in gold re pr bullion, or issuing, selling or redeeming traveler’s be cheques, money orders or similar instruments, of ay m collecting, holding and delivering or transmitting ok bo money; is th (c) an operator of a gaming activity; of rt (d) a trustee or a manager of a Collective Investment pa o .N Scheme; and d ve (e) an operator of a bureau de change; r se re “Chairman” means the Chairman of the National Committee s ht appointed under section 8; rig ll “close associate” means- .A a ni (a) a natural person who is known to have joint beneficial za an ownership of body corporate, or any other close fT to business relations with the politically exposed person; en m (b) a natural person who has sole beneficial ownership of a n er body corporate which is known to have been set up for ov G the de facto benefit of the politically exposed person; or 25 20 (c) a natural person who is reasonably found or believed to © be closely connected with a politically exposed person for any other reason, either socially or professionally; “Commissioner” means the Commissioner of the FIU appointed under section 5; 572 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] “comparable body” means an overseas Government agency with functions similar to those of the FIU; “competent authority” means a public entity with designated responsibilities for combatting money laundering, terrorist financing or proliferation financing including a . AG O regulator, customs authority, a law enforcement agency, of n licensing agency or authority, FIU and the National io s is Committee; m er tp “customer” means a natural person, legal person or legal ou arrangement that receives goods, products or services ith w from a reporting person for exchange for money or any ed ut rib other consideration; st di “customer due diligence” includes establishing the identity of or ed the customer, a beneficial owner or a person purporting uc od to act on behalf of the customer, whereby- re pr (a) in the case of a customer, doing any or all of the following, be depending on the perceived money laundering, ay m terrorist financing or proliferation financing risk- ok bo (i) verifying the identity of the customer using is th reliable, independent source documents, data or of rt information; pa o .N (ii) understanding, and where appropriate, obtaining d ve the required information on the nature and r se re purpose of the business relationship; s ht (iii) understanding the occupation of the customer; rig ll (iv) understanding the ownership and control .A a ni structure of the customer who is a legal person or za an legal arrangement; fT to (v) obtaining information on the source of customer en m income and funds; n er (vi) establishing the identity of beneficial owners ov G and taking reasonable measures to verify their 25 20 identities using reliable, independent source © documents, data or information; or (vii) obtaining information that a person purporting to act on behalf of the customer is so authorised and 573 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] to identify and verify the identity of that person using reliable, independent source documents, data or information; (b) in the case of a beneficial owner, doing any or all of the following, depending on the perceived money . AG O laundering, terrorist financing or proliferation of n financing risk: io s is (i) taking reasonable measures to verify the identity m er tp of the beneficial owner using reliable, independent ou source documents, data or information; ith w (ii) understanding the occupation of the beneficial ed ut rib owner; or st di (iii) obtaining information on the source of income or ed and funds of the beneficial owner; uc od (c) in the case of a person purporting to act on behalf of the re pr customer, doing any or all of the following, depending be on the perceived money laundering, terrorist financing ay m or proliferation financing risk: ok bo (i) verifying the identity of the person using is th reliable, independent source documents, data or of rt information; pa o .N (ii) understanding the occupation of the person; d ve (iii) understanding the relationship between the r se re person and the customer; or s ht (iv) ascertaining that the person is authorised to act rig ll on behalf of the customer; and a.A ni (d) in all cases above, in paragraphs (a), (b) and (c), za an reviewing existing records to ensure that they are up- fT to to-date and relevant; en m Act No. “customs” has the meaning ascribed to it under the East n er 1 of 2004 African Community Customs Management Act; ov G “family member” means an individual who is related 25 20 to a politically exposed person either directly on © consanguinity or through marriage or similar civil forms of relationships or partnership; 574 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] “financial institution” means a person who conducts as a business one or more of the following activities or operations: (a) acceptance of deposits and other repayable funds from the public including private banking and other . AG O repayable funds from the public, issuing and managing of n means of payment, trading in foreign exchange io s is or transferable securities or decentralised virtual m er tp currencies exchangers, wallet providers, payments ou processors or senders, and other virtual currency ith w business models; ed ut rib (b) lending, including consumer credit, mortgage st di credit, factoring with or without recourse, finance of or ed commercial transactions including forfeiting; uc od (c) financial leasing; re pr (d) mortgage and house financing; be (e) money or value transfer services without extending to ay m persons that solely provide messaging or other support ok bo systems for transmitting the funds; is th (f) issuing and managing means of payment including of rt credit cards, debit cards, money orders, cheques, pa o .N traveler’s cheques, money, bankers’ drafts and electronic d ve money; r se re (g) financial guarantees and commitments; s ht (h) dealing in gold bullion; rig ll (i) trading in: .A a ni (i) money market instruments including cheques, za an bills, certificates of deposit and derivatives; fT to (ii) foreign exchange; en m (iii) exchange, interest rate and index instruments; n er (iv) transferable securities; and ov G (v) commodity futures trading; 25 20 (j) securities dealership, brokerage and securities market © intermediation; (k) individual and collective portfolio management; 575 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] (l) trusteeship and management of collective investment schemes; (m) safekeeping and administration of cash or liquid securities on behalf of other persons; (n) investing, administering or managing funds or money . AG O on behalf of other persons; of n (o) pension fund management; io s is (p) insurance, insurance agency and brokerage; and m er tp (q) money and currency changing; ou “forfeiture” has the meaning ascribed to it under the ith w Proceeds of Crime Act; ed Cap. 256 ut rib “funds” has the meaning ascribed to it under the Prevention st di Cap. 19 of Terrorism Act; or ed “Government” means the Government of the United Republic uc od and where appropriate includes the Revolutionary re pr Government of Zanzibar; be “law enforcement agency” means the Police Force, Prevention ay m and Combating of Corruption Bureau, Immigration ok bo Services, Tanzania Revenue Authority and any other is th body dealing with criminal investigations; of rt “legal arrangement” means trusts or other similar pa o .N arrangements; d ve “Minister” means the Minister responsible for finance; r se re “money laundering” means offences referred to under s ht section 12; rig ll “National Committee” means the National Multi- .A a ni disciplinary Committee on Anti-Money Laundering za an Committee established by section 8; fT to “occasional transaction” means a transaction carried out by en m a reporting person on behalf of a customer with whom it n er does not have a business relationship and the transaction is ov G carried out otherwise than through an account and it may 25 20 be a single transaction or a series of transactions in a single © operation or several operations that appear to be linked to each other; “politically exposed person” means a natural person- 576 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] (a) within or outside the United Republic who is or has been entrusted with a prominent public function; (b) who is or has been entrusted with a prominent function in an international organisation including a member of senior management such as a member of the board of . AG O directors, the chief executive officer, director, head of of n department, their deputies and equivalent functions, io s is and includes family members and close associates of such a m er tp natural person; ou “predicate offence” means a serious offence as defined in the ith w Proceeds of Crime Act; ed Cap. 256 ut rib “proceeds of crime” has the meaning ascribed to it under the st di Cap. 256 Proceeds of Crime Act; or ed “proliferation financing” means an act by a person who by uc od any means directly or indirectly, renders help or provides re pr in whole or in part any assets, funds, economic resources, be technology or services to any proliferation of weapons of ay m mass destruction course or to a person or jurisdiction or ok bo for the benefit of a person designated by the United Nations is th Security Council to acquire, possess, broker, manufacture, of rt develop, store, transport, convey, transfer, import or export pa o .N nuclear, chemical or biological weapons and their means d ve of delivery or related materials including technologies and r se re dual use goods used for non legitimate purpose; s ht “prominent public function” or “prominent function” rig ll means- .A a ni (a) in the case of Government and public sector functions za an in the United Republic, an office or function held by a fT to public leader mentioned in the Public Leadership Code en m Cap. 398 of Ethics Act and a person in the capacity of deputy of n er the identified leader; ov G (b) in the case of a foreign government or jurisdiction, 25 20 an office or function held by heads of state or © government, senior politicians, senior executives of state owned corporations or agencies, high level and senior functions in the foreign states, governments 577 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] or diplomatic missions, foreign institutions and international organisations affiliated to the United Republic and foreign countries and jurisdictions including high commissioners, ambassadors and their deputies, military and other attaches, directors, . AG O assistant directors, managers and assistant managers of n and other senior and principal officers; or io s is (c) any other prominent function which the Minister may, m er tp by notice published in the Gazette, specify; ou “property” has the meaning ascribed to it under the Proceeds ith w of Crime Act; ed Cap. 256 ut rib “reasonable measures” means appropriate measures which st di are commensurate with the money laundering, terrorist or ed financing or proliferation financing risk; uc od “regulator” includes, the: re pr (a) Bank of Tanzania; be (b) Capital Markets and Securities Authority; ay m (c) Tanzania Insurance Regulatory Authority; ok bo (d) Gaming Board of Tanzania; is th (e) Registrar of Societies of rt (f) Registrar of Cooperatives; pa o .N (g) Registrar of Titles; d ve (h) Registrar of Non-Governmental Organisations; r se re (i) Registrar of Political Parties; s ht (j) Energy and Water Utilities Regulatory Authority; rig ll (k) Tanzania Communication Regulatory Authority; .A a ni (l) Business Registration and Licensing Agency; za an (m) Tanzania Investment Centre; fT to (n) Tanganyika Law Society; en m (o) Architects and Quantity Surveyors Registration Board; n er (p) National Board of Accountants and Auditors; ov G (q) Registration, Insolvency and Trusteeship Agency; and 25 20 (r) any other regulatory authorities or agencies which the © Minister may, by order published in the Gazette specify; “reporting person” means- (a) banks and financial institutions; (b) cash dealer; 578 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] (c) an accountant, real estate agent, auditor, tax adviser, dealer in precious stones work of arts or metals; (d) trust and company service provider; (e) motor vehicle dealer; (f) clearing and forwarding agent; . AG O (g) advocates, notaries and other independent legal of n professionals when: io s is (i) assisting clients in preparing or executing m er tp transactions involving: ou (aa) the purchase or sale of real property or ith w commercial enterprises; ed ut (bb) management of funds, securities or other rib st di assets which belong to a client; or (cc) the opening or management of bank accounts, ed uc saving accounts or portfolios od pr (dd) the organisation of contributions required to re be create, manage or direct corporations or legal ay m entities; ok (ee) the creation, management or direction of bo is corporations or legal entities; and th of (ff) the buying or selling of business entities; rt pa (ii) acting on behalf of a client in any financial or real o .N estate transaction; d ver se (h) pension funds managers, securities market re intermediaries, financial leasing entities, microfinance s ht rig service providers except for community microfinance ll .A groups classified as Tier 4 in the Microfinance Act and a Cap. 407 ni za companies and financing housing companies; an fT (i) auctioneers; and to en (j) any other person who the Minister may, by notice n m published in the Gazette, specify; er ov G “risk assessment” means identifying, assessing and 25 understanding risks and documenting the process and 20 © the findings or results; “senior management” means natural persons within a body corporate at the highest level of management who have the day to day task of managing the body corporate and 579 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] includes directors, chief executive officers, their deputies and where appropriate, members of the board of directors or of equivalent function; “terrorist financing” means- (a) the provision of finance or economic resources or . AG O making available financial or related services to- of n (i) a terrorist, terrorist group, terrorist entity, terrorist io s is course or a terrorist act; m er tp (ii) an individual, a group or entity that is concerned ou with a terrorist, terrorist group, terrorist entity, ith w terrorist course or a terrorist act; ed ut rib (b) conducting a financial transaction or facilitating a st di financial transaction directly or indirectly, in order or ed to deal with property that is owned or controlled by a uc od terrorist, terrorist group or terrorist entity; re pr (c) conducting financial transaction or facilitating a be financial transaction directly or indirectly, in order ay m to deal with property on behalf of a terrorist, terrorist ok bo group or terrorist entity; is th (d) financing or facilitating travel of any individual or of rt a group of individuals to a country other than their pa o .N country of residence or nationality in order to participate d ve in a terrorist course, terrorist training or terrorist act, r se re or in order to directly or indirectly conduct, perpetrate, s ht plan or prepare terrorist acts; rig ll (e) organising or directing others to commit any of the .A a ni acts in paragraphs (a), (b), (c) or (d) or participating in za an any of those acts as an accomplice; or fT to (f) an attempt to commit any of the acts in paragraphs (a), en m (b), (c), (d) or (e); n er “trust and company service provider” means a person who, ov G by way of business, provides any of the following services: 25 20 (a) the formation of body corporate; © (b) acting as, or arranging for another person to act as, a director, secretary or a similar position in relation to a body corporate; 580 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] (c) providing a registered office, business address, correspondence or administrative address and other related services for a body corporate; (d) acting as, or arranging for another person to act as, a trustee of a trust or a similar legal arrangement; or . AG O (e) acting as, or arranging for another person to act as, a of n nominee shareholder for another person other than io s is a company listed in a regulated market that is subject m er tp to disclosure requirements in accordance with the ou laws of the United Republic or subject to equivalent ith w international standards; ed ut rib “virtual asset” means a digital representation of value that st di can be digitally traded or transferred and can be used for or ed payment or investment purposes and is recognised by the uc od government of the United Republic and does not include re pr digital representations of fiat currencies, securities and be other financial assets that are already covered in the laws ay m of the United Republic; ok bo “virtual asset service provider” means a person who conducts is th one or more of the following activities or operations for of rt or on behalf of a customer: pa o .N (a) exchange between virtual assets and fiat currencies; d ve (b) exchange between one or more forms of virtual assets; r se re (c) transfer of virtual assets; s ht (d) safekeeping or administration of virtual assets or rig ll instruments enabling control over virtual assets; and a.A ni (e) participation in and provision of financial services za an related to an issuer’s offer or sale of a virtual asset. fT to en PART II n m er ov THE FINANCIAL INTELLIGENCE UNIT G 25 AND THE NATIONAL COMMITTEE 20 © Establishment 4.–(1) There shall be established under the Ministry of Financial Intelligence Unit responsible for finance an Extra Ministerial Department to Acts Nos. be known as a Financial Intelligence Unit also known by an 1 of 2012 s. 4; 2 of 2022 s. 5 acronym FIU. 581 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] (2) The FIU shall be responsible for receiving, analyzing and disseminating suspicious transaction reports, currency transaction reports, cross border currency reports, electronic funds transfer reports and other information regarding actual or potential money laundering, terrorist financing or . AG O proliferation financing received from the reporting persons of n and other sources from within and outside the United Republic. io s is (3) The FIU shall have operational and budgetary m er tp independence as may be necessary for effective discharge of ou its functions. ith w ed ut

5.–(1) The President shall appoint a person who has adequate rib Appointment of st Commissioner knowledge and experience either in economics, monetary di or Act No. affairs, finance, law, financial crimes or any other field that is ed 1 of 2012 s. 5 uc beneficial to the execution of this Act, to be the Commissioner od pr of FIU. re be (2) The Commissioner shall be responsible for the general ay m administration of the FIU. ok bo (3) The Commissioner shall be the Chief Executive Officer is th as well as the accounting officer of the FIU and shall perform of rt the functions and exercise powers conferred upon him by this pa o Act. d .N (4) The Commissioner shall hold office for a term of five ver se years and may be re-appointed for another one term of five re s ht years subject to satisfactory performance. rig (5) The President may remove the Commissioner from ll .A a office on the grounds of misconduct, incompetency or for a ni za an ground of mental or physical incapacity. fT (6) Where the removal of the Commissioner is in question, to en the President shall form a Committee to inquire into and make n m er recommendation to the President on the matter. ov G (7) Where the Committee recommends that the removal of 25 20 the Commissioner should not be made, the President shall not © remove the Commissioner. (8) The Committee shall consist of- (a) a judge of the High Court; (b) a senior police officer; 582 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] (c) a senior officer from the Bank of Tanzania; and (d) two other prominent persons who have knowledge and experience on the matter which is the subject of inquiry. (9) Where the inquiry is commended in terms of subsection . AG O (6), the Commissioner shall be temporarily relieved from duty of n pending completion of inquiry and measures taken by the io s is President. m er tp (10) The Committee shall make its own procedure for the ou conduct of investigation. ith w ed ut Powers and duties 6.–(1) For the purposes of section 4, the Financial Intelligence rib st of FIU Unit shall be a national center responsible for receiving, di or Acts Nos. analysing, keeping and maintaining suspicious transaction ed 1 of 2012 s. 6; uc 2 of 2022 s. 6 reports and other information concerning money laundering od pr and associated predicate offences, terrorist financing and re be proliferation financing and in that respect, the FIU shall- ay m (a) receive suspicious transaction reports, currency ok bo transaction reports, cross border currency reports, is th electronic funds transfer reports and such other of rt reports or information submitted by reporting persons pa o or submitted from any other source and conduct d .N operational and strategic analysis on such reports and ver se information; re s ht (b) disseminate the results of the analysis to law rig enforcement agencies, supervisory authorities or other ll .A a competent authorities; ni za an (c) supervise reporting persons for compliance with anti- fT money laundering, countering terrorist financing and to en countering proliferation financing obligations under n m er this Act and any other written laws; ov G (d) compile statistics and records and share information 25 20 relating to money laundering, terrorist financing and © proliferation financing within or outside the United Republic; (e) make recommendations and advise the National Committee on matters relating to anti-money 583 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] laundering, countering terrorist financing and countering proliferation financing; (f) in consultation with regulators of the relevant reporting persons, issue guidelines to such reporting persons in respect of obligations provided for under this Act, and . AG O any other anti-money laundering, countering terrorist of n financing and countering proliferation financing io s is obligations under any other written laws; m er tp (g) create training requirements and provide such training ou for stakeholders including reporting persons and their ith w employees, judicial officers and competent authorities; ed ut rib (h) consult with a relevant person, institution or st di organisation for the purpose of discharging its duties or ed under this section; uc od (i) request for or have access to information from a re pr reporting person, regulator or law enforcement agency be or any other relevant legal person in the manner ay m provided for in the regulations; ok bo (j) require any reporting person to report to FIU any is th suspicious transaction or activity where that reporting of rt person suspects that the transaction or activity involves pa o .N money laundering, terrorist financing or proliferation d ve financing; r se re (k) in collaboration with the regulator or on its own, s ht supervise reporting persons for anti-money laundering, rig ll countering terrorist financing or countering .A a ni proliferation financing compliance; za an (l) prepare periodic reports on money laundering, terrorist fT to financing and proliferation financing typologies and en m trends, in the manner provided for in the regulations; n er (m) enter into agreements or related arrangements overseas ov G with financial intelligence units and comparable 25 20 bodies and other foreign counter parts for exchange © of information pertaining to combating money laundering and associated predicate offences, terrorist financing and proliferation financing; 584 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] (n) exchange information with domestic competent authorities in combating money laundering, terrorist financing and proliferation financing; and (o) liaise with the relevant investment and business registration and licensing authorities in assessing . AG O genuine investors. of n (2) Upon analysis of the reports and information, the io s is Commissioner or an employee of the FIU designated by him may- m er tp (a) where there are reasonable grounds to suspect money ou laundering, terrorist financing, proliferation financing ith w or any other crime, disseminate spontaneously or ed ut rib upon request intelligence or any other information to st di relevant law enforcement agencies for investigation or ed and possible prosecution; uc od (b) disseminate spontaneously or upon request reports to re pr a competent authority for any relevant action including be reporting person supervisory action, recovery of taxes, ay m and inform on anti-money laundering, countering ok bo terrorist financing and countering proliferation is th financing; or of rt (c) share the information with any other relevant pa o .N stakeholders within or outside the United Republic. d ve (3) The Commissioner may, where he has received r se re information from the reporting person pursuant to section s ht 18 and upon reasonable grounds, suspend a suspicious rig ll transaction or activity for a period not exceeding five working a.A ni days to allow time for investigation on the matter. za an (4) The suspension under subsection (3) shall lapse after fT to five days. en n m er Employees of FIU 7.–(1) There shall be appointed such number and categories ov G Act No. of employees of the Government or other public institutions 25 1 of 2012 s. 7 20 of such qualifications as may be considered necessary to assist © the Commissioner in the performance of FIU. (2) In appointing such employees, the appointing authority shall in particular have regard to persons with experience in law, finance, customs and law enforcement. 585 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] (3) The employees referred to under subsection (1), shall hold office for a term of five years and shall be eligible for re-appointment. (4) The employees of the FIU shall be subject to initial and periodical disclosure of financial position in the manner as . AG O may be prescribed under the regulations. of n (5) An employee of the FIU shall be under the general io s is obligation to keep all information that comes to his knowledge m er tp as confidential during his employment and after termination ou of employment. ith w (6) A person who contravenes the provisions of subsection ed ut rib (5), commits an offence and shall be liable- st di (a) in the case of an employee, to administrative actions or ed or any other sanctions which may be imposed under uc od section 33; and re pr (b) in the case of former employee, a fine of five million be shillings or imprisonment for a term of three years or ay m to both. ok bo is th Establishment 8.–(1) There is established for the purposes of this Act, a of and composition rt National Multi-Disciplinary Committee on Anti-Money pa of National o Laundering, Counter Terrorist Financing and Counter .N Committee d Acts Nos. Proliferation Financing. ver 1 of 2012 s. 8; se (2) The National Committee shall be composed of- re 2 of 2022 s. 7 s ht (a) one representative of the Bank of Tanzania, who shall rig be the Chairman; ll .A a (b) one representative of the Ministry of Finance; ni za an (c) one representative of the Ministry of Finance of the fT Revolutionary Government of Zanzibar; to en (d) one representative of the Office of the Attorney General; n m er (e) one representative of the Attorney General’s Chambers ov G of the Revolutionary Government of Zanzibar; 25 20 (f) two representatives of the Directorate of Criminal © Investigation, one of whom shall come from its office in Tanzania Zanzibar; (g) one representative of the Ministry responsible for foreign affairs; 586 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] (h) the Commissioner of the FIU; (i) one representative of the Capital Markets and Securities Authority; (j) one representative from the National Prosecutions Service; . AG O (k) one representative from the office of the Director of n of Public Prosecutions from the Revolutionary io s is Government of Zanzibar; m er tp (l) one representative from the Tanzania Revenue ou Authority; ith w (m) one representative from the Zanzibar Revenue Board; ed ut rib (n) one representative from the Business Registration and st di Licensing Agency; or ed (o) one representative from Zanzibar Business and uc od Property Registration Agency; re pr (p) one representative from the Ministry responsible for be wildlife conservation; ay m (q) one representative from the Zanzibar Anti-Corruption ok bo and Economic Crimes Authority; is th (r) one representative from the Drug Control and of rt Enforcement Authority; pa o .N (s) one representative from the Zanzibar Drugs Control d ve and Enforcement Authority; r se re (t) one representative of the Tanzania Intelligence and s ht Security Service; and rig ll (u) One representative from the Prevention and Combating .A a ni of Corruption Bureau. za an (3) The National Committee may co-opt a person who fT to appears to it to have special knowledge or experience in en m investigation of matters relating to anti-money laundering. n er (4) Members of the National Committee established under ov G subsection (1) shall be- 25 20 (a) appointed by the Minister; and © (b) senior officers who possess knowledge and experience in matters relating to money laundering, terrorist financing and proliferation financing. 587 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] (5) In appointing members of the Committee, the Minister shall take into consideration gender equality. (6) The Minister shall appoint an employee from the public service to be the Secretary of the National Committee. (7) The tenure of office for members of the Committee . AG O shall be three years but shall be eligible for re-appointment for of n another term. io s is m er

9. The functions of the National Committee shall be to- tp Functions ou of National (a) formulate, assess, regularly review and improve the ith Committee w effectiveness of the policies and measures to combat ed Acts Nos. ut 1 of 2012 s. 9 money laundering and associated predicate offences, rib 2 of 2022 s. 8 st terrorist financing and proliferation financing; di or (b) advise the Government on legislative, regulatory and ed uc policy reforms in respect of anti-money laundering, od pr countering terrorist financing, countering proliferation re be financing and combating crimes; ay m (c) coordinate activities to identify, assess and create ok bo understanding of money laundering, terrorist financing is th and proliferation financing risks at the national, sectoral, of rt institutional and individual level, to recommend risk pa o mitigation measures, to oversee implementation of the d .N risk assessment action plans and to ensure that such ver se risk assessments are kept up-to-date; re s ht (d) coordinate engagements and engage with regional rig and international anti-money laundering, countering ll .A a terrorist financing and countering proliferation ni za an financing bodies and advise the Government fT accordingly; to en (e) coordinate country assessments or evaluations by n m er regional and international anti-money laundering, ov G countering terrorist financing and countering 25 20 proliferation financing bodies and advise the © Government on implementation of the resulting action plans; and 588 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] (f) establish and oversee operational mechanisms within the United Republic to coordinate and share information among competent authorities and other stakeholders, in order to combat money laundering, terrorist financing and proliferation financing. . AG O of

10.–(1) The Members of the National Committee shall elect n Meetings io s of National is one from their number to be the Vice-Chairman. m Committee er (2) The Chairman shall preside over a meeting of the tp ou National Committee and in his absence the Vice-Chairman ith w shall preside over the meeting. ed ut (3) In the absence of both, the Chairman and Vice- rib st Chairman, the members present shall elect one of their number di or to preside at that meeting. ed uc (4) A majority of the members of the National Committee od pr shall constitute a quorum at a meeting. re be (5) The National Committee may regulate its own procedure ay m for the conduct of its meetings. ok bo is

11. There shall be paid to the members of the National th Allowances and of remunerations Committee such allowances or remunerations and other rt pa payments as shall be determined by the Minister. o d .N ver se PART III re s ht PROHIBITION OF MONEY LAUNDERING rig ll a.A

12.–(1) A person who- ni Offence of money za laundering an (a) engages, directly or indirectly, in a transaction that fT Act No. 2 of 2022 involves property that is proceeds of a predicate offence to s. 9 en while he knows or ought to know or ought to have n m er known that the property is the proceeds of a predicate ov G offence; 25 20 (b) converts, transfers, transports or transmits property © while he knows or ought to know or ought to have known that such property is the proceeds of a predicate offence, for the purposes of concealing, disguising the 589 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] illicit origin of the property or of assisting a person who is involved in the commission of such offence to evade the legal consequences of his actions; (c) conceals, disguises or impedes the establishment of the true nature, source, location, disposition, movement or . AG O ownership of or rights with respect to property, while of n he knows or ought to know or ought to have known that io s is such property is the proceeds of a predicate offence; m er tp (d) acquires, possesses, uses or administers property, while ou he knows or ought to know or ought to have known at ith w the time of receipt that such property is the proceeds of ed ut rib a predicate offence; or st di (e) participates in, associates with, conspires to commit, or ed attempts to commit, aids and abets or facilitates and uc od counsels the commission of any of the acts described re pr in paragraphs (a) to (d), be commits offence of money laundering. ay m (2) The offence of money laundering under subsection (1) ok bo shall be separate, independent and distinct from the crime is th underlying money laundering offence. of rt (3) It shall not be necessary that a person first be convicted of pa o .N the crime underlying money laundering offence, in order for that d ve person to be convicted of money laundering in subsection (1). r se re (4) Conviction for the offence of money laundering in s ht subsection (1) shall not amount to conviction for the associated rig ll underlying crime to money laundering offence. .A a ni za

13.–(1) A person who contravenes the provisions of section 12 an Penalties for fT acts of money shall, on conviction- to laundering en (a) if the person is an individual, be sentenced to a fine m Acts Nos. n er 1 of 2012 s. 10; not exceeding five hundred million shillings and ov 4 of 2016 s. 4 G not less than one hundred million shillings or an 25 20 amount equivalent to three times the market value © of the property, whichever is greater or to a term of imprisonment not exceeding ten years and not less than five years; or 590 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] (b) if the person is a body corporate, be liable to a fine not exceeding one billion shillings and not less than five hundred million shillings or be ordered to pay the amount equivalent to three times the market value of the property, whichever amount is greater. . AG O (2) Notwithstanding the provisions of subsection (1), the of n Financial Intelligence Unit or regulator may apply to the court io s is for an order against a body corporate that has been convicted m er tp of an offence under this section, namely- ou (a) barring that body corporate from carrying on business ith w directly or indirectly for a period not exceeding three years; ed ut rib (b) placing that body corporate under supervision of the st di regulator; or or ed (c) permanently barring that body corporate from uc od carrying on business in respect of which an offence was re pr committed directly or indirectly. be ay m Offences by 14.–(1) Where an offence under the provisions of section 12 is ok bo corporate bodies committed by a body corporate or an association of persons, a is Act No. th 2 of 2022 s. 10 person who, at the time of the commission of the offence, was- of rt (a) a director, manager, controller or partner or a person pa o holding a similar position; or d .N (b) concerned in the management of its affairs, ver se may be convicted of that offence and shall be liable to a penalty re s ht specified in section 13 unless that person proves that, the rig offence was committed without his consent or connivance and ll a.A that he exercised such diligence to prevent the commission ni za an of the offence as he ought to have exercised, having regard fT to the nature of his functions in that capacity and to the to en circumstances pertaining to commission of the offence. n m er (2) The director, manager, controller, partner or a person ov G concerned in the management of affairs of a body corporate 25 20 or an association may be convicted for an offence under © subsection (1) notwithstanding that, such body corporate or association of persons has not been convicted of the offence. (3) A person within the body corporate who would have committed an offence if any act had been done or omitted to be 591 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] done by him personally, commits that offence and on conviction shall be liable to the same penalty as if such act had been done or omitted to be done by his agent or officer in the course of that agent’s business or in the course of that officer’s employment unless he proves that the offence was committed without his . AG O knowledge or consent and he took all reasonable precautions to of n prevent the doing of, or omission to do, such an act. io s is m er PART IV tp ou ith SUPERVISION OF ANTI-MONEY LAUNDERING, w ed COUNTERING TERRORIST FINANCING ut rib AND PROLIFERATION FINANCING2 st di or ed

15.–(1) There shall be conducted risk assessments on money uc Undertaking od risk assessment, risk mitigation laundering, terrorist financing and proliferation financing in pr re the United Republic. be measures and ay allocation of (2) Risk assessments in subsection (1) shall entail identifying, m resources ok Acts Nos. assessing and understanding risks at the national, sectoral and bo 8 of 2020 s. 5; is institutional level and commensurate risk mitigation measures th 2 of 2022 s. 12 of shall be applied. rt pa (3) Risk assessments in subsection (1) shall be conducted o .N by competent authorities, reporting persons and other d ver anti-money laundering, countering terrorist financing and se re countering proliferation financing stakeholders and shall be s ht rig approved by the senior management. ll .A (4) A person conducting the assessment under subsection a ni za (1) may seek assistance, data or information from any other an fT person from within or outside the United Republic. to (5) There shall be established mechanisms to provide en n m and share with relevant stakeholders, information from risk er ov assessments for awareness creation, to prioritise the allocation G 25 of resources, to help in mitigating the associated risks and to 20 © help institute implementation of adequate measures to prevent 2 The Heading to Part IV is amended by Act No. 2 of 2022 under section 11 592 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] money laundering, terrorist financing and proliferation financing. (6) Reporting persons shall conduct money laundering, terrorist financing and proliferation financing risk assessment associated with- . AG O (a) new and existing customers, countries or geographical of n areas, products, services, transactions and delivery io s is channels; m er tp (b) new products, business practices, services, technologies ou and delivery channels prior to their launch or use; ith w (c) existing products, business practices, services, ed ut rib technologies and delivery channels which have st di undergone changes, prior to their continued use; and or ed (d) the use of new or developing technologies for both new uc od and pre-existing products. re pr (7) Subject to subsection (6)(d), new products shall include be transfers within decentralised convertible virtual currencies or ay m assets networks, person-to-person transfers involving hosted ok bo wallet providers, large value virtual currency payments or is th assets transfer, mobile payments and internet-based payments of rt services. pa o .N (8) Subject to any relevant law allowing the use of virtual d ve currencies or assets, when conducting risk assessment with r se re respect of virtual currencies or virtual assets, the reporting s ht persons shall pay particular attention to the risks posed by the rig ll nodes or points of intersection that are used to move value .A a ni into and out of fiat currencies and shall focus the efforts on za an identifying higher risks convertible virtual currencies or assets. fT to (9) Reporting persons shall have appropriate mechanisms en m to provide to competent authorities results, findings and other n er information on risk assessments conducted in subsection (6). ov G (10) Competent authorities and reporting persons shall- 25 20 (a) have documented policies, controls and procedures © approved by senior management, to manage and mitigate the risks identified in subsections (1) and (6); (b) ensure that the level of detail of the documented policies, controls and procedures in the case of 593 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] reporting persons in paragraph (a) are commensurate with the size, structure and complexity of the business of the reporting person; (c) monitor and audit the implementation of policies, controls and procedures referred to in paragraph (a); . AG O (d) regularly review and update the policies, controls of n and procedures in paragraph (a) and document such io s is reviews and updates; and m er tp (e) take enhanced measures to mitigate the risks in ou paragraph (a) where higher risks are identified. ith w (11) The risk assessments referred to under subsections (1) ed ut rib and (6) shall be kept up-to-date at a frequency commensurate st di with the identified risks, but at least once a year. or ed (12) In accordance with the identified risks in subsections uc od (1) and (6), a regulator shall effectively monitor reporting re pr persons under its purview and take the necessary measures to be ensure that the risks are managed and mitigated and to enforce ay m anti-money laundering, countering terrorist financing and ok bo countering proliferation financing compliance. is th (13) The United Republic may decide not to apply some of rt of the anti-money laundering, countering terrorist financing pa o .N and countering proliferation financing measures based on d ve proven low risk of money laundering, terrorist financing or r se re proliferation financing. s ht (14) The reporting persons may apply simplified measures rig ll to manage and mitigate the risks, if the risk assessments have .A a ni identified low risk areas and there is no suspicion of money za an laundering, terrorist financing or proliferation financing. fT to (15) Countering measures applied shall be proportionate to en m the identified risks and explanations shall be made on their n er proportionality to the risks suo motto or when called upon to ov G do so. 25 20 (16) A person who fails to implement any anti-money © laundering, countering terrorist financing and countering proliferation financing measures or requirements in accordance with this section shall be liable to administrative measures as may be imposed by the FIU or the regulator. 594 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] Reporting person 16.–(1) A reporting person shall- to conduct customer due (a) conduct customer due diligence in accordance with the diligence identified risks- Act No. 2 of 2022 s. 13 (i) before establishing a business relationship; (ii) before carrying out an occasional transaction; . AG O (iii) when money laundering, terrorist financing or of n proliferation financing is suspected; io s is (iv) when the veracity or adequacy of documents, m er tp data or information previously obtained for the ou purposes of customer due diligence is doubted; or ith w (v) any time after establishing the materiality of money ed ut rib laundering, terrorist financing and proliferation st di financing risk; or ed (b) conduct ongoing monitoring after establishing a uc od business relationship, including the updating of re pr customer information; be (c) not open or operate an account in a false, disguised, ay m anonymous or fictitious name; ok bo (d) not commence a business relationship prior to is th completion of customer due diligence, provided that, of rt under proven low risk, business relationship may pa o .N commence pending the verification process; d ve (e) terminate an existing business relationship when r se re customer due diligence cannot be completed; and s ht (f) submit a suspicious transaction report to the FIU rig ll when customer due diligence cannot be completed as a.A ni provided under paragraphs (d) and (e). za an (2) The reporting person shall, when conducting customer fT to due diligence- en m (a) obtain and verify information on the ultimate beneficial n er owners of a legal person, entity or arrangement; ov G (b) in relation to politically exposed person, in addition to 25 20 undertaking normal due diligence measures- © (i) have appropriate risk management systems to determine whether the customer is a politically exposed person; 595 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] (ii) obtain senior management approval for establishing business relationship with such customer; (iii) take reasonable measures to establish the source of wealth and source of funds; and . AG O (iv) conduct enhanced ongoing monitoring on that of n relationship. io s is (3) A reporting person may, subject to conditions prescribed m er tp in the regulations, rely on customer due diligence conducted ou by another reporting person. ith w [s. 15A] ed ut rib st

17.–(1) A reporting person shall- di Reporting or persons to (a) establish and maintain records of all domestic and ed establish and uc international transactions, know your customer od maintain records Acts Nos. pr files, customer due diligence, accounts, business re 1 of 2012 s. 11; be 2 of 2022 s. 14 correspondences, risk assessments on money ay m laundering, terrorist financing and proliferation ok bo financing and suspicious transaction reports and the is th results of any analysis carried out, and all other reports of rt and statistics required by this Act; and pa o (b) retain records required under this section for a d .N minimum period of ten years from the date- ver se (i) when all activities relating to a transaction or a re s ht series of linked transactions were completed or rig was last carried out; ll a.A (ii) when the business relationship was formally ni za an ended; and fT (iii) when analysis or when money laundering, to en terrorist financing or proliferation financing risk n m er assessment was completed: ov G Provided that, a reporting person who closes business shall 25 20 submit all records required under paragraph (a) to the regulator © or, where there is no regulator in respect of the reporting person, to the FIU and the provisions of this paragraph shall not apply. 596 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] (2) The reporting person shall, where a report has been made to the FIU or he knows or believes that a matter is under investigation, without prejudice to subsection (1), retain all relevant records for as long as may be required by the competent authority. . AG O (3) Records required under subsection (1)(a) shall contain of n particulars sufficient to identify- io s is (a) the name, address and occupation or where appropriate, m er tp business or principal activity of each person- ou (i) conducting the transaction; or ith w (ii) on whose behalf the transaction is being ed ut rib conducted, as well as the method used by the st di reporting person to verify the identity of each or ed such person; uc od (b) the nature and date of the transaction; re pr (c) the type and amount of currency involved; be (d) the type and identification number of any account with ay m the reporting person involved in the transaction; ok bo (e) the following details if the transaction involves a is th negotiable instrument: of rt (i) the name of the drawer of the instrument; pa o .N (ii) the name of the institution on which it was drawn; d ve (iii) the name of the payee, if any; r se re (iv) the amount and date of the instrument; s ht (v) the number, if any, of the instrument; and rig ll (vi) details of any endorsements appearing on the .A a ni instrument; and za an (f) the name and address of the reporting person, and of fT to the officer, employee or agent of the reporting person en m who prepared the record. n er (4) Records maintained pursuant to this section shall be ov G made available on timely basis to competent authorities upon 25 20 request. © (5) Where a reporting person is required by any provision of law to release any document referred to under this section, he shall retain a copy of the document and maintain a register of 597 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] released documents with such particulars as may be prescribed in the regulations. (6) A reporting person who contravenes the provisions of this section commits an offence and shall- (a) be liable to administrative sanctions as prescribed . AG O under section 21; or of n (b) on conviction, be liable to criminal sanctions as io s is provided for under this Act. m er tp [s. 16] ou ith w

18.–(1) Where a reporting person suspects or has grounds ed Reporting ut persons to to suspect that, funds or property are proceeds of crime, or rib report suspicious st are related or linked to or are to be used for commission or di transactions or Acts Nos. continuation of a predicate offence or has knowledge of a fact ed 1 of 2012 s. 12; uc or an activity that may be an indication of money laundering, od 2 of 2022 s. 15 pr terrorist financing, proliferation financing or predicate offence, re be he shall within twenty-four hours after forming that suspicion ay m and, wherever possible, before any transaction is carried out- ok bo (a) take reasonable measures to ascertain the purpose is th of the funds or property, transaction or proposed of rt or attempted transaction, the origin and ultimate pa o destination of the funds or property involved, and the d .N identity and address of any ultimate beneficiary; and ver se (b) prepare a report of the transaction or proposed or re s ht attempted transaction in accordance with subsection rig (2), and submit the report to the FIU by any secure ll a .A means as may be specified by FIU. ni za an (2) A report required under subsection (1) shall contain fT such particulars as may be specified in the regulations to be to en made. n m er (3) A reporting person who has reported a suspicious ov G transaction or proposed suspicious transaction in accordance 25 20 with this Part shall, if requested to do so by the FIU or a law © enforcement agency investigating the suspicious transaction, give such further information in relation to such transaction. (4) A person who contravenes the provisions of subsection (1) commits an offence and on conviction shall- 598 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] (a) if the person is an individual, be liable to a fine not exceeding five million shillings or imprisonment for a term not exceeding five years; or (b) if the person is a body corporate, be liable to a fine of not exceeding ten million or three times the market . AG O value of the property, whichever is greater. of n (5) Notwithstanding the provisions of subsection (3), the io s is records of other transactions shall be kept in the manner as m er tp prescribed in the regulations. ou [s. 17] ith w ed ut

19.–(1) A reporting person shall establish and maintain rib Reporting st persons to internal policies, controls and procedures that- di or establish and (a) ensure that persons to be engaged or employed by the ed maintain internal uc reporting reporting person are properly screened and vetted, in od procedures pr order to recruit qualified persons with integrity; re Act No. be 2 of 2022 s. 16 (b) designate a natural person as money laundering ay m reporting officer, to whom its employees shall report any ok bo actual or suspicious activities or transactions in terms is th of money laundering, terrorist financing, proliferation of rt financing or any other criminal activity which comes to pa o the attention of employees in the course of work; d .N (c) enable the money laundering reporting officer to have ver se reasonable access to information that may be relevant re s ht in determining whether sufficient basis exists to report rig the suspicious activity or transaction to the FIU, ll a .A pursuant to section 18; ni za an (d) require the money laundering reporting officer to fT report the suspicious activity or transaction to the to en FIU pursuant to section 18, in the event there exists n m er reasonable grounds to report the matter; ov G (e) put in place measures to ensure that employees are 25 20 made aware of the legislation relating to combating © money laundering, terrorist financing and proliferation financing and related policies, procedures and controls, that are established and maintained pursuant to this Act; 599 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] (f) ensure that relevant employees are appropriately trained on a regular basis in the recognition and handling of suspicious transactions relating to money laundering, terrorist financing and proliferation financing; (g) provide for compliance management arrangements . AG O that ensure that anti-money laundering, countering of n terrorist financing and countering proliferation io s is financing matters are addressed by the compliance m er tp department or function; and ou (h) ensure independent and regular auditing of the internal ith w policies, procedures and controls established in this ed ut rib section is carried out. st di (2) In determining whether a person has complied with any or ed requirement of paragraphs (e) and (f) of subsection (1), the uc od court shall have regard to all the circumstances of the case, re pr including such customs and practices as may be current in the be relevant trade, business, profession or employment, and may ay m take account of any relevant guidance adopted or approved ok bo by a public authority or other body that supervises, regulates is th or acts as a representative of the trade, business, profession or of rt employment carried on by that person. pa o .N [s. 18] d ver se

20.–(1) A reporting person shall, in addition to requirements re Reporting s persons to ht provided for under section 19- rig implement group (a) in the case of reporting persons with group-wide ll wide programmes .A a Act No. corporate structures, formulate and implement ni za 2 of 2022 s. 16 an consistent group-wide programmes to combat money fT laundering, terrorist financing and proliferation to en financing, which shall include policies, procedures and n m er controls for sharing information within the group; ov G (b) in the case of reporting persons whose corporate 25 20 structures extend beyond the United Republic, ensure © that their foreign branches and majority-owned subsidiaries apply anti-money laundering, countering terrorist financing and countering proliferation 600 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] financing measures consistent with the requirements of section 19; (c) in the case of foreign operations of such reporting persons, where the minimum anti-money laundering, countering terrorist financing and countering . AG O proliferation financing requirements of the host country of n or jurisdiction are less strict than those of the United io s is Republic, ensure that their branches and majority- m er tp owned subsidiaries in host countries implement the ou requirements of the United Republic, to the extent that ith w the host country legislation permits; ed ut rib (d) where the host country does not permit the proper st di implementation of the measures of the United Republic, or ed apply appropriate additional measures to manage the uc od money laundering, terrorist financing and proliferation re pr financing risks, and inform their respective regulator be in the host country or jurisdiction, and in the United ay m Republic; and ok bo (e) where the additional measures are not sufficient, is th the relevant regulator in the United Republic shall of rt consider additional supervisory actions such as placing pa o .N additional controls on the reporting person, including d ve as appropriate, requesting the financial group to close r se re down its operations in the host country or jurisdiction. s ht (2) A person who contravenes the provisions of this section rig ll commits an offence and shall be liable- .A a ni (a) to administrative sanctions as prescribed in the za an regulations made under section 21; or fT to (b) on conviction, to a fine of not less than five hundred en m thousand shillings but not exceeding five million n er shillings or to imprisonment for a period of twelve ov G months, in the case of a natural person; or 25 20 (c) on conviction, to a fine of not less than five million © shillings but not exceeding ten million shillings, in the case of a body corporate. [s. 19] 601 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] Administrative 21. Where a reporting person fails to comply with the sanctions Acts Nos. provisions of section 15, 17, 18 or 19, the FIU or regulator shall 1 of 2012 s. 13; impose any of the following administrative sanctions: 2 of 2022 s. 17 (a) warning or caution not to repeat the conduct which led to non-compliance; . AG O (b) reprimand; of n (c) directives to take remedial action or to make specific io s is arrangement to remedy the default; m er tp (d) restriction or suspension of certain business activities; ou (e) suspending a business licence; or ith w (f) suspension or removal from office a member of staff ed ut rib who caused or failed to comply. st di [s. 19A] or ed

22.–(1) A person shall not disclose or warn any person uc Tipping off od Act No. involved in the transaction or to an unauthorised third party, pr re 1 of 2012 s. 14 during the establishment or course of customer relationship or be ay when conducting occasional transactions- m ok (a) that, a suspicious transaction report under section 18 bo is may be prepared, or is being prepared or has been sent th of to the FIU; or rt pa (b) any other information or matter, except so far as is o .N required by this Act. d ver (2) A person who contravenes the provisions of subsection se re (1), commits an offence and on conviction shall- s ht rig (a) if the person is an individual, be liable to a fine not ll .A exceeding five hundred million shillings and not less than a ni za one hundred million shillings or to imprisonment for a an fT term not exceeding ten years and not less than five years; to en (b) if the person is a body corporate, be liable to a fine not n m exceeding one billion shillings and not less than five er ov hundred million shillings or three times the market G 25 value of the property, whichever amount is greater. 20 © [s. 20] Secrecy obligation 23.–(1) The provisions of this Part shall have effect overridden Acts Nos. notwithstanding any obligation as to secrecy or other 1 of 2012 s. 15; 2 of 2022 s. 18 602 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] restrictions, upon the disclosure of information imposed by any law or otherwise. (2) For the purpose of subsection (1), competent authorities and reporting persons may, on matters related to combating money laundering, terrorist financing and proliferation . AG O financing, share information among each other or with their of n counterparts overseas. io s is [s. 21] m er tp ou Protection 24.–(1) Notwithstanding any other written law, no criminal, ith w of reporting civil or administrative proceedings for breach of banking or ed persons, ut witnesses and professional secrecy or contract shall be instituted against rib st informers a reporting person, or a person employed or engaged by the di Acts Nos. or 1 of 2012 s. 16; reporting person, or a partner of a reporting person who, in ed uc 2 of 2022 s. 19 good faith, submitted a report or supplied information in od pr compliance with this Act. re be (2) In any criminal proceedings brought under this Act, ay m the court may, upon an application by the Attorney General, ok bo order- is th (a) witness testimony to be given through the use of of rt communication technology such as video conferencing; pa o (b) non-disclosure or limitations as to the identity and d .N whereabouts of a witness taking into account the ver se security of the informer or witness; or re s ht (c) any other protection as the court may, upon application rig by the Attorney General, order. ll .A a (3) The provisions of subsection (1) shall apply equally to ni za an victims in so far as are witnesses. fT [s. 22] to en n m

25.–(1) A person, who transports into or out of the territory er Obligation to ov report physical G of the United Republic, cash or a bearer negotiable instrument 25 cross border 20 transportation in any amount equal to or above the amount prescribed in the © of cash or bearer negotiable regulations, shall declare to an officer of customs such cash or instruments bearer negotiable instrument and the customs shall transmit Acts Nos. 1 of 2012 s. 17; that information to the FIU. 2 of 2022 s. 20 603 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] (2) Subject to subsection (1), a customs officer shall have powers to stop and restrain cash or bearer negotiable instrument for a reasonable time in order to make the necessary enquiries or to ascertain whether evidence of money laundering, terrorist financing or proliferation financing may be found. . AG O (3) Where a customs officer exercises the powers under of n subsection (2), he shall notify the owner of the cash or bearer io s is negotiable instrument on the time expected to be spent to m er tp conduct the necessary enquiries or ascertainment which shall ou not exceed fourteen days. ith w (4) Where a customs officer is satisfied that- ed ut rib (a) amount of cash or bearer negotiable instruments has st di not been declared; or ed (b) amount of cash or bearer negotiable instruments or any uc od other particular, detail or information has been falsely re pr or inaccurately declared; be (c) the person making the declaration has not provided ay m convincing or satisfactory responses on, among others, ok bo the source of the cash or bearer negotiable instruments, is th the ultimate beneficiaries, or the intended use of the of rt cash or bearer negotiable instruments; or pa o .N (d) there is suspicion of money laundering, terrorist d ve financing, proliferation financing or predicate offence, r se re even if cash or bearer negotiable instruments have been s ht correctly or accurately declared, rig ll he shall take reasonable measures including seizing part or .A a ni the whole amount of cash or bearer negotiable instruments. za an (5) The FIU shall open a special account into which all the fT to seized cash or bearer negotiable instruments shall be kept. en m (6) Where a person fails to comply with the reporting n er obligation provided for under subsection (1), competent ov G authority may impose any administrative sanction against 25 20 such person. © (7) A person who contravenes the provisions of subsection (1) or otherwise, commits an offence and shall be liable to a penalty provided for in section 33. 604 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] (8) A person who, knowingly, makes false or wrong reporting of cash or a bearer negotiable instruments, commits an offence and shall be liable to a penalty provided for under section 33, and in addition, the court may order confiscation of cash or a bearer negotiable instrument in respect of which . AG O an offence was committed. of n [s. 23] io s is m er

26.–(1) The regulator or FIU shall- tp Regulator’s ou obligation (a) enforce compliance by reporting persons in accordance ith Acts Nos. w with the requirements of this Act; ed 1 of 2012 s. 17; ut 2 of 2022 s. 21 (b) conduct onsite and offsite examinations for the purpose rib st of monitoring and ensuring compliance by reporting di or persons; and ed uc (c) impose administrative sanctions for non-compliance. od pr (2) Subject to subsection (1)(b), the supervision for anti- re be money laundering, countering financing terrorism and ay m countering proliferation financing compliance shall include ok bo the application of the consolidated group supervision or is th monitoring. of rt [s. 23A] pa o d .N PART V ver se re FINANCIAL PROVISIONS s ht rig ll

27. The funds of the FIU shall consist of- .A Sources of fund a ni (a) such sums as may be appropriated by the Parliament; za an and fT to (b) grants and donations lawfully received by the FIU. en m [s. 24] n er ov G Financial year 28. The financial year of the FIU shall be the period of twelve 25 20 calendar months beginning on the first day of July of every © year. [s. 25] 605 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] Accounts and 29.–(1) The FIU shall keep accounts and records of its audit Act No. transactions and affairs and shall ensure that all moneys 1 of 2012 s. 18 received are properly brought to account and all payments out of its moneys are correctly made and properly authorised and adequate control is maintained over its property. . AG O (2) The Commissioner shall, as soon as practicable but not of n later than ninety days after the thirtieth day of June in each year, io s is cause to be submitted to the Controller and Auditor-General, m er tp accounts and financial records of the FIU, who shall audit them ou and prepare a report on the accounts and submit the report to ith w the Minister, who shall lay it before the National Assembly. ed ut rib [s. 26] st di or ed PART VI uc od MISCELLANEOUS PROVISIONS pr re be ay Immunity 30. An action shall not be taken against the FIU, the m ok Commissioner, members of the National Committee and bo employees of FIU in respect of an act done or omission made is th of by the FIU, Commissioner, members of the Committee or rt pa an employee of the FIU in good faith, in the exercise of the o .N functions conferred on the FIU under this Act and the d ve Criminal Procedure Act. r Cap. 20 se re [s. 27] s ht rig ll

31. The procedure in relation to arrest, information gathering .A Application of a proceeds of crime ni powers, trial, determination, confiscation, forfeiture, pecuniary za Caps. 256 an and 20 penalty and restraining orders and control of property liable to fT to confiscation, shall be in accordance with the provisions of the en m Proceeds of Crime Act and the Criminal Procedure Act. n er [s. 28] ov G 25 20 Disclosure of 32. A person who is or was engaged in the administration of © information Act No. this Act and discloses any information acquired by that person 1 of 2012 s. 19 by virtue of his position to unauthorised person, commits an offence. [s. 28A] 606 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] General penalty 33.–(1) Where a person contravenes any provision of this Act Acts Nos. 1 of 2012 s. 19; or regulations made under this Act and no specific penalty is 2 of 2022 s. 22 stipulated for that offence, that person on conviction shall- (a) in case of an individual person, be liable to a fine not exceeding five hundred million shillings and not less . AG O than one hundred million shillings or be ordered of n to pay the amount equivalent to the total amount of io s is money involved or market value of the property, which m er tp ever amount is greater or imprisonment for a term not ou exceeding three years; ith w (b) in case of a body corporate, be liable to a fine of not less ed ut rib than five hundred million shillings or be ordered to pay st di the amount equivalent to the total amount of money or ed involved or market value of the property, which ever uc od amount is greater. re pr (2) For purposes of subsection (1), every director, be manager, controller, principal officer or a person holding a ay m similar position in a body corporate shall be deemed to have ok bo committed the offence unless that person proves that, the is th offence was committed without his consent or connivance and of rt that he exercised such diligence to prevent the commission of pa o .N the offence as he ought to have exercised, having regard to the d ve nature of his functions in that capacity and to the circumstances r se re pertaining to commission of the offence. s ht [s. 28B] rig ll .A a

34.–(1) The High court shall have jurisdiction to try a person ni Court jurisdiction za over foreigner an from a foreign state for an offence committed outside the fT Act No. United Republic which would constitute an offence under this to 1 of 2012 s. 19 en Act. n m er (2) A person from a foreign state shall not be prosecuted ov G except with the consent of the Director of Public Prosecutions. 25 20 (3) For the purpose of subsection (1), prosecution against a © person who commits an offence outside the United Republic shall only be conducted where that person cannot be extradited to a foreign state where the offence was committed. [s. 28C] 607 <!-- page break --> THE ANTI-MONEY LAUNDERING ACT [CAP. 423 R.E. 2023] Maintenance of 35.–(1) Competent authorities shall keep and maintain the statistics Act No. following statistics concerning money laundering, terrorist 2 of 2022 s. 23 financing and proliferation financing and predicate offences: (a) statistics on investigations, prosecutions, convictions, seizures, freezing, forfeiture and confiscations of . AG O proceeds and instrumentalities of crime; and of n (b) information on mutual legal assistance, extraditions, io s is suspicious transaction reports and other reports that m er tp are submitted to the FIU, intelligence reports that are ou disseminated by the FIU and any other information ith w that competent authorities exchange with counterparts ed ut rib at the national and international level, st di and shall provide the statistics to the FIU semi-annually in or ed the manner as the FIU and the relevant competent authority uc od shall agree. re pr [s. 28D] be ay m Regulations 36.–(1) The Minister may make regulations for the better ok bo Acts Nos. carrying out of the purposes and provisions of this Act. is 1 of 2012 s. 20; th 2 of 2022 s. 24 (2) Without prejudice to the generality of subsection (1), of rt the Minister may make regulations prescribing- pa o (a) matters required or permitted by this Act to be d .N prescribed; ver se (b) manner and procedure of carrying out customer due re s ht diligence; rig (c) the manner and procedure for making declaration ll .A a of cash or bearer negotiable instruments that are ni za an transported in or out of the United Republic; and fT (d) matters which are necessary or convenient to be to en prescribed for carrying out or giving effect to this Act. n m er [s. 29] ov G 25 20 © 608 <!-- page break -->