Pascal Ndege
JF-Expert Member
- Nov 24, 2012
- 2,977
- 1,900
Introduction
In the recent past organised criminal activities, of which money laundering and
the financing of terrorism form part, have been on the increase in Tanzania. The
incidence of smuggling, poaching, trading in illicit drugs, corruption, fraud,
embezzlement, misappropriation and theft of public funds, racketeering, illegal
arms dealing and, most recently, terrorism, have been on the rise.1 Criminals
generate substantial revenues and apply different mechanisms to disguise the
origins or ownership of the proceeds of their illicit activities. The increase in
organised criminal activities has been facilitated by several factors including
globalisation, liberalisation of the economy and advances in communications,
including information technology.
Globalisation has had several impacts on criminal activities. First, organised
criminal activities have become transnational and de-territorised. Criminals take
advantage of the global marketplace to trade in illicit drugs, traffic in persons,
commit fraud and carry out other transnational crimes. Second, criminals exploit
the revolution in global finance. Changes in information technology, in particular,
have made it easier for criminal assets to move across national borders through
financial markets that are out of the reach of the law. The internationalisation of
crime has thus occurred in response to the increased movement of persons, the
free flow of capital and the globalisation of financial services and the revolution
in communications. These have provided opportunities for laundering the
proceeds of criminal acts through investment in various sectors of the local and
global economy.
Efforts to combat organised criminal activities in Tanzania have focused on
preventing money laundering and the financing of terrorism. This is because
there is an increasing recognition that money laundering is an inherent feature of
international and organised crime. It is through the process of money laundering
activities that criminal activities, such as the trade in illicit drugs, firearms trafficking,
38
Tackling money laundering in East and Southern Africa
corruption and trafficking in people have become really lucrative, by placing
the proceeds of these crimes (and the criminals themselves) beyond the reach
of the authorities.
Additionally, there has been a concern that profits generated from organised
criminal activities threaten the countryÕs public safety, financial systems and
economic development. Recent events have shown that terrorists or terrorist
entities have set up financial empires using ill-gotten gains, the main objective
of which is to undermine international financial stability and security. Counter
initiatives, which commenced in the 1980s and gained momentum in the 1990s,
are built on strategies aimed at attacking organised criminals through their
financial operations. They focus on dispossessing criminals, unravelling their
financial networks and financing methods, and developing a better
understanding of how to combat them. These efforts have included ratification
of several international legal instruments, signing numerous bilateral and
multilateral agreements on technical co-operation and assistance and the
establishment of a municipal regulatory framework and numerous national
infrastructures.
This chapter, which examines various measures adopted to address the problem
of money laundering and the financing of terrorism in Tanzania, analyses the
opportunities and challenges experienced in adopting an effective anti-money
laundering and anti-terrorist financing regime in the country. It also presents
recommendations for strengthening the existing mechanisms.
The chapter first presents the definitions of money laundering and the financing
of terrorism it adopts, drawing on international and regional initiatives and
domestic legislation aimed at controlling problems. It then examines the extent
of the problems in Tanzania. Thereafter it describes the relevant measures
adopted by the government of the United Republic of Tanzania (hereafter the
government), including the policy framework, the regulatory regime and
institutional structures. The efficacy of such frameworks and structures is then
examined. The chapter concludes with recommendations for adequately
controlling these problems.
Read more herehttps://www.issafrica.org/pubs/Monographs/No108/Chap2.pdf
C
In the recent past organised criminal activities, of which money laundering and
the financing of terrorism form part, have been on the increase in Tanzania. The
incidence of smuggling, poaching, trading in illicit drugs, corruption, fraud,
embezzlement, misappropriation and theft of public funds, racketeering, illegal
arms dealing and, most recently, terrorism, have been on the rise.1 Criminals
generate substantial revenues and apply different mechanisms to disguise the
origins or ownership of the proceeds of their illicit activities. The increase in
organised criminal activities has been facilitated by several factors including
globalisation, liberalisation of the economy and advances in communications,
including information technology.
Globalisation has had several impacts on criminal activities. First, organised
criminal activities have become transnational and de-territorised. Criminals take
advantage of the global marketplace to trade in illicit drugs, traffic in persons,
commit fraud and carry out other transnational crimes. Second, criminals exploit
the revolution in global finance. Changes in information technology, in particular,
have made it easier for criminal assets to move across national borders through
financial markets that are out of the reach of the law. The internationalisation of
crime has thus occurred in response to the increased movement of persons, the
free flow of capital and the globalisation of financial services and the revolution
in communications. These have provided opportunities for laundering the
proceeds of criminal acts through investment in various sectors of the local and
global economy.
Efforts to combat organised criminal activities in Tanzania have focused on
preventing money laundering and the financing of terrorism. This is because
there is an increasing recognition that money laundering is an inherent feature of
international and organised crime. It is through the process of money laundering
activities that criminal activities, such as the trade in illicit drugs, firearms trafficking,
38
Tackling money laundering in East and Southern Africa
corruption and trafficking in people have become really lucrative, by placing
the proceeds of these crimes (and the criminals themselves) beyond the reach
of the authorities.
Additionally, there has been a concern that profits generated from organised
criminal activities threaten the countryÕs public safety, financial systems and
economic development. Recent events have shown that terrorists or terrorist
entities have set up financial empires using ill-gotten gains, the main objective
of which is to undermine international financial stability and security. Counter
initiatives, which commenced in the 1980s and gained momentum in the 1990s,
are built on strategies aimed at attacking organised criminals through their
financial operations. They focus on dispossessing criminals, unravelling their
financial networks and financing methods, and developing a better
understanding of how to combat them. These efforts have included ratification
of several international legal instruments, signing numerous bilateral and
multilateral agreements on technical co-operation and assistance and the
establishment of a municipal regulatory framework and numerous national
infrastructures.
This chapter, which examines various measures adopted to address the problem
of money laundering and the financing of terrorism in Tanzania, analyses the
opportunities and challenges experienced in adopting an effective anti-money
laundering and anti-terrorist financing regime in the country. It also presents
recommendations for strengthening the existing mechanisms.
The chapter first presents the definitions of money laundering and the financing
of terrorism it adopts, drawing on international and regional initiatives and
domestic legislation aimed at controlling problems. It then examines the extent
of the problems in Tanzania. Thereafter it describes the relevant measures
adopted by the government of the United Republic of Tanzania (hereafter the
government), including the policy framework, the regulatory regime and
institutional structures. The efficacy of such frameworks and structures is then
examined. The chapter concludes with recommendations for adequately
controlling these problems.
Read more herehttps://www.issafrica.org/pubs/Monographs/No108/Chap2.pdf
C
