THE ANTI-MONEY LAUNDERING (AMENDMENT) REGULATIONS, 2023

1. These Regulations may be cited as the Anti- Money Laundering (Amendment) Regulations, 2023 and shall be read as one with the Anti-Money Laundering Regulations, hereinafter referred the “principal Regulations”. to as Amendment of regulation 3

2. The principal Regulations are amended in regulation 3(2) by deleting the words “once a year” and substituting for them the words “after every three years”. Amendment of regulation 6

3. regulation 6, by- The principal Regulations are amended in (a) adding immediately after subregulation (1) the following: “(2) The frequency and intensity of on-site and off-site anti-money laundering or financing terrorism supervision of reporting persons or reporting entity group shall be determined on the basis of- (a) the money laundering or terrorist 1 GN. NO. 853E (Contd.) The Anti-Money Laundering (Amendment) financing risks and the policies, internal controls and procedures associated with reporting person or group, as identified by the regulator’s assessment of the reporting person or the reporting entity group’s risk profile; the (b) the money laundering or terrorist the financing risks present country; in (c) the characteristics of the reporting person or reporting entity group, in particular the diversity and number of financial institutions and the degree of discretion allowed to them risk-based approach; under the (d) in the case of financial entities, the most recent risk assessment, audit or on-site findings presented in the reporting person’s regular or special report conducted sectoral their by regulatory bodies; inspection respective (e) significant non-compliance trends observed in one of the entities the group of entities within the nature of regardless of business non- or (financial financial) or location (local or external). (3) Notwithstanding subregulation (2), the supervision of designated non-financial businesses and professions pursuant to section 23A, shall be on a risk-sensitive basis, by- (a) determining the frequency and intensity of supervision on the basis of the understanding of the terrorist laundering money proliferation and financing 2 GN. NO. 853E (Contd.) The Anti-Money Laundering (Amendment) financing risks they face, taking into their consideration characteristics, in particular their diversity and number; and (b) taking into account the money laundering, terrorist financing and proliferation financing risk profile the degree of discretion and allowed to them under the risk- based approach, when assessing the adequacy of the anti-money terrorist laundering, financing and counter proliferation financing controls, internal policies and procedures.”; and counter (b) renumbering subregulations (2) and (3) as (4) and (5) respectively. Addition of regulation 6A

4. The principal Regulations are amended by adding immediately after regulation 6 the following: “Regulator review of risk profile of reporting persons

6A. A regulator shall review the assessment of the money laundering, financing and proliferation terrorist financing risk profile of a reporting person or reporting person’s group including the risks of non-compliance periodically and when there are major the events in management and operations of the financial institution or group.”. developments or Amendment of regulation 8

5. The principal Regulations are amended in regulation 8, by- (a) designating the contents of regulation 8 as subregulation (1); and (b) adding immediately after subregulation (1) as designated the following: “(2) A shall reporting undertake customer due diligence measures when carrying out occasional transactions person 3 GN. NO. 853E (Contd.) The Anti-Money Laundering (Amendment) to above Tanzanian shillings equivalent fifteen thousand United States Dollars, including situations where the transaction is carried out in a single operation or in several operations which appear to be linked. concerning the business relationship prior (3) A reporting person shall adopt risk management procedures the conditions under which a customer may utilise to verification in which activities that may be conducted pending verification shall include opening and allowing an initial deposit or deposit of funds for any new or existing low risk services. (4) In relation to politically exposed persons and in addition to customer due diligence requirements under this regulation, reporting persons shall- (a) take to reasonable measures determine whether a customer or the beneficial owner is such a politically exposed person; and there is higher (b) in case risk business relationship with such politically exposed person, adopt section the measures 15A(2)(b) of the Act. (5) Trust and company under shall service providers customer due conduct diligence pursuant to section 15A of the Act and this regulation when preparing for or carrying out for a client transactions concerning the following activities: (a) acting as a formation agent of legal persons; (b) acting as or arranging for another person to act as a director or secretary of a company, a partner of a partnership, or a similar position in relation to other legal 4 GN. NO. 853E (Contd.) The Anti-Money Laundering (Amendment) persons; (c) providing a registered office, or address business accommodation, correspondence or administrative address for a company, a partnership or any other legal person or arrangement; (d) acting as or arranging for another person to act as a trustee of an express trust or performing the equivalent function for another form of legal arrangement; and (e) acting as or arranging for another to act as a nominee person shareholder for another person.”. Addition of regulation 8A

6. The principal Regulations are amended by adding immediately after regulation 8A the following: “Identification of beneficial owner or the legal proper person identification

8B.-(1) Without prejudice to the provisions of the Act, these Regulations and any other written law, in order to facilitate of beneficial owner of legal person and legal arrangements, reporting persons shall, when identifying beneficial owner legal of arrangements, identify the natural person who ultimately owns or controls the customer or the natural person on whose behalf a transaction or activity is being conducted including a natural person who exercises ultimate effective control over a legal person of legal arrangement. (2) A natural person shall be identified as an ultimate beneficial owner and more than one natural persons can be the ultimate beneficial owners of a legal person or a legal arrangement and the term “ultimate ownership or control” in which shall include is exercised ownership or control situations 5 GN. NO. 853E (Contd.) The Anti-Money Laundering (Amendment) through a chain of directly or indirectly, alone or together, including legal persons or legal arrangements and in that regard, the reporting person shall, when conducting customer due diligence have regard to- (a) in relation to a legal person- (i) the natural person who is acting alone or jointly either directly or indirectly; (ii) to the extent that there is doubt as to whether the person identified subparagraph under (i) is the beneficial owner or where no natural is identified, the natural person exercising control of the legal person legal or through arrangement other means; person (iii) where exceptionally no natural person is identified under subparagraphs (i) and (ii), the natural person the holds who position of senior managing official; (b) in relation to trusts- (i) the settlor; (ii) the trustee; (iii) the protector; (iv) the beneficiaries or class of beneficiaries; natural exercising (v) any person other 6 GN. NO. 853E (Contd.) The Anti-Money Laundering (Amendment) effective ultimate control over the trust including through a chain of control or ownership; and (vi) in relation to other legal arrangements, the natural persons referred under to subparagraph (v).”. Amendment of regulation 9

7. The principal Regulations are amended in regulation 9, by- (a) adding immediately after paragraph (m) the following: “(n) 7 financing pursuant to sections 18 and 19 of implement programs the Act, laundering, against money and terrorist proliferation financing which have regard to money laundering risks and the size of the business which the following policies, include procedures and controls: (i) (ii) of compliance management arrangements the including appointment a compliance officer at the management level; screening procedures to high ensure standards when hiring employees; (iii) an ongoing employee programme; training and (iv) an independent audit the test to function system; GN. NO. 853E (Contd.) The Anti-Money Laundering (Amendment) laundering financing which (o) implement group wide programmes against money and terrorist are applicable and appropriate to all majority-owned and branches subsidiaries of the financial group which include the measures set out in section 19 and- (ii) (i) policies and procedures for sharing information required for the purposes of customer due diligence and money laundering, terrorist financing and proliferation financing risk management; the provision, at group-level compliance of the audit or laundering, anti-money financing of counter terrorists counter and financing of proliferation functions customers, of transactions accounts, and information from branches subsidiaries when and including necessary, information and analysis of transactions or activities which appear unusual where such analysis was done; (iii) provision to branches and subsidiaries of information referred to in subparagraph the group-level (ii) from functions when relevant and appropriate risk management; to (iv) adequate safeguards on the confidentiality and use of exchanged, information 8 GN. NO. 853E (Contd.) The Anti-Money Laundering (Amendment) including prevent tipping-off;”; safeguards to (b) renaming paragraphs (n) and (o) as paragraphs (p) and (q) respectively. Amendment of regulation 10

8. The principal Regulations are amended in regulation 10, by- (a) deleting paragraph (d); and (b) renaming paragraphs (e) and (f) as paragraphs (d) and (e) respectively. Amendment of regulation 13

9. The principal Regulations are amended in regulation 13 by deleting subregulation (2) and substituting for it the following: “(2) A reporting person may rely on the information previously obtained by a third party which covers one or more of the following due diligence: customer elements of (a) identification of the customer, whether permanent or occasional, and whether natural or legal person or legal arrangement and the customer’s verification of identity reliable, using independent source documents, data or information; person that purporting to act on behalf of the customer is so authorized, and the identity and verification of the identity of the customer; a (b) verification (c) identification of and the beneficial of owner measures verification of the identity of the beneficial owner based on the information or data relevant obtained from a reliable source indicating who is the beneficial owner; .”. 9 GN. NO. 853E (Contd.) The Anti-Money Laundering (Amendment) Amendment of regulation 16

10. The principal Regulations are amended in regulation 16, by adding immediately after subregulation (2) the following: “(3) The requirements report suspicious transactions under this regulation shall, non-financial businesses and professions, be subject to the following qualifications: designated all to to (a) for lawyers, notaries, other independent legal professionals they accountants, when, and engage in a financial transaction on behalf of, or for a client, in relation to the following activities: (i) buying and selling of real estate; (ii) managing of client money, securities or other assets; of for operation (v) creating, bank, securities (iii) management savings or accounts; (iv) organisation of the contributions creation, or management of companies; or management legal persons or arrangements, and buying and selling of business entities; (b) for dealers in precious metals or stones when they engage in a cash transaction with a customer equal to or above Tanzanian shillings equivalent thousand United States Dollars; operating of fifteen to (c) for trust and company service providers, when they engage in a transaction on behalf of or for a 10 GN. NO. 853E (Contd.) The Anti-Money Laundering (Amendment) client in relation to the following activities: (i) acting as a formation agent of legal person; (iii) providing (ii) acting as or arranging for another person to act as a director or secretary of a company, a partner of a partnership or a similar position in relation to other legal persons; registered a office, business address or accommodation, or correspondence administrative address for a company, a partnership or any other legal person or arrangement; (iv) acting as or arranging for another person to act as a trustee of an express trust the performing or for equivalent another legal arrangement; form of function (v) acting as or arranging for another person to act as a nominee shareholder for another person.”. Dodoma, 21st November, 2023 MWIGULU LAMECK NCHEMBA MADELU, Minister for Finance 11