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Tanzania to enforce cash limit law on travellers

Discussion in 'Jukwaa la Siasa' started by nngu007, Jan 24, 2012.

  1. nngu007

    nngu007 JF-Expert Member

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    Tanzania is to introduce cash limits for people moving across its borders to fight money laundering and the financing of terrorism and crime. Photo/REUTERS

    Posted Sunday, January 22 2012 at 16:16

    Tanzania is to introduce cash limits for people moving across its borders to fight money laundering and the financing of terrorism and crime.

    The government said the regulations require travellers entering and leaving the country to inform officials of cash or financial instruments in their possession - including travellers' cheques, bonds, cheques or convertible securities.

    The Customs department will monitor cash declarations at all ports, airports, land, sea and air crossings as the country begins enforcing the anti-money laundering measure from this year.

    Laston Msongole, Deputy Permanent Secretary in the Ministry of Finance and Economic Affairs, said Tanzania will have measures in place to detect physical cross-border transportation of currency and bearer negotiable instruments, including a declaration system or other disclosure obligation.

    Mr Msongole said the regulations would ensure that competent authorities have the legal powers to stop or restrain currency or bearer negotiable instruments that are suspected to be related to terrorist financing or money laundering, or that are falsely declared or disclosed.

    The government established the Financial Intelligence Unit (FIU) in 2007 to tackle money-laundering activities. Deputy Commissioner of Police and also Commissioner for the FIU, Samson Kasalla, said that the regulations were still awaiting the signature Minister for Finance and Economic Affairs Mustafa Mkullo before being made public.

    Money laundering is a worldwide problem, with approximately $300 billion being processed annually in the United States.

    According to Mr Kasalla, the government will also focus on real estate as part of a review of the Anti-Money Laundering Regulations Act of 2007. "One of the areas to be examined during the review of the Act is real estate development, which has witnessed massive growth in Tanzania. It is an area that can easily be used by launderers to hide dirty money," he said.

    FIU Assistant Commissioner Gilbert Nyombi said Tanzania was among countries faced with the problem of money laundering because many financial transactions were settled in cash.

    According to Mr Nyombi, the FIU faces many challenges in detecting money laundering.

    "FIU has no mandate to hold suspects after completion of investigations. There are seven cases so far that have been handed over to law enforcers for action," he said.
    He said the regulation is going to make it tougher to move terrorist money across borders.


    In Tanzania, the Proceeds of Crime Act of 1991 criminalises narcotics-related money laundering. However, the Act does not adequately define money laundering, and it has only been used to prosecute corruption cases.

    The law obliges financial institutions to maintain records of financial transactions exceeding $109 (Tsh100,000) for a period of 10 years.

    The Bank of Tanzania has issued regulations requiring financial institutions to file suspicious transaction reports, but this requirement is not being enforced, and no mechanism currently exists for receiving and analysing the suspicious transaction.

    International standards requires travellers crossing national borders to carry an upper limit of $10,000

     
  2. nngu007

    nngu007 JF-Expert Member

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    Well... this should be to all not letting Prince and his friends leaving the country when visiting Arabic Countries with More Money - Launders...
     
  3. NGUVUMOJA

    NGUVUMOJA JF-Expert Member

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    Mostly, those called int. laws are being forced by the Americans and Europeans. Our Parliament's job is to pass them freely, without questions.
     
  4. cartura

    cartura JF-Expert Member

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    this law could fuel mega-corruption at entry/exit points if not properly enforced
     
  5. Nzi

    Nzi JF-Expert Member

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    Damn! I didn't know that TZ has a Financial Intelligence Unit! Is it an autonomous unit?

    If yes,I wouldn't need it,because we have TRA! What should have been done is to strengthen TRA. I know in US,there is IRS;it has one of the most advanced systems in dealing with these issues. Why can't TZ learn from IRS?
     
  6. DSN

    DSN JF-Expert Member

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    It was suppose to be in use and not as what the situation currently is, people carrying billions of money while crossing the borders.
     
  7. M

    Mokerema JF-Expert Member

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    Ministry of Finance and BOT should have forex control anyway and the foul cry of fake goods could be history. The Usd 10,000 ceiling could be reduced up to Usd 5000. If you ban cash transactions on all imports this means the comedy being played by TRA could come to an end as the value of the transactions could be tracked through the import licenses and revenue collection on all transactions eased. Put this into operation before march 31st 2012.
     
  8. Mr. Zero

    Mr. Zero JF-Expert Member

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    You said it all!!!
     
  9. Mr.Professional

    Mr.Professional JF-Expert Member

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    FIU in Tanzania with all wat we are going thru? damn them
     
  10. pmwasyoke

    pmwasyoke JF-Expert Member

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    Jee haitatufaa wakiacha mapesa yaingie kwa wingi yajenge hapa, lakini wathibiti utokaji?
     
  11. Atukilia

    Atukilia JF-Expert Member

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    I have noted property market boom, which fuels high prices for normal citizens. It could be a place to clean dirty money. I am sure if govt machinery are tech enabled to fight sophistication of financial sectors. Bottom line do we have a will?
     
  12. Atukilia

    Atukilia JF-Expert Member

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    Utaleta mgogoro na nchi nyingine kuwa watu wanaiba kwao wanakuja kuwekeza hapa. Wizi ni wizi tu ndio maana kuna mikataba ya kimataifa ya kubadilishana wahalifu
     
  13. H

    Hofstede JF-Expert Member

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    Kinachoniacha hoi kuhusu hii nchi watu wanaamka na kuja mawazo bila kuyafanyia analysis. Serikali inatakiwa kuanza na kujenga trust. Leo hii hakuna mfanyakazi yeyote aliyemuaminifu na sheria hii itakuwa na madhara makubwa sana kwa wasafiri. Kama leo hii una askari wanaoshirikiana na majambazi katika kutekeleza michongo ya uhalifu. Ukienda bank kuchukua fedha nyingi mfanyakazi wa bank anawapigia simu wazee wa kazi na kujikuta unavamiwa na kunyang'anywa pesa yote na pengine kuuwawa.

    Je huu utaratibu wa ku-declare kiasi cha pesa ulicho nacho kwa wafanyakazi corrupt una uhakika gani ya kulinda usalama wa wasafiri na hasa wale wanaoingia nchini?. Ni dhahiri kuwa declaration hizi ni mwanya mwingine wa kuhatarisha maisha ya watu na hasa wasafiri. Hakuna siri inayoweza kuwekwa na wafanyakazi wa TRA etc on a big possession of cash. It is a bad move and will cost peoples' lives.
     
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