New Regulations On Electronic Funds Transfer And Cash Transaction Reporting

As part of more robust anti-money laundering measures, the Tanzanian government has recently released the new Anti-Money Laundering (Electronic Funds Transfer and Cash Transaction Reporting) Regulations, 2019 (the Regulations). The Regulations introduce stricter reporting guidelines, as well as mandatory reporting formats.

This Finance Briefing provides an overview of some of the relevant provisions of the Regulations to ensure professionals are more aware of their heightened obligations.

NO. RELEVANT Provision OVERVIEW 1. Information to be contained in Electronic funds transfer and currency transaction (regulation 4 and the schedules of the Regulations)

This provision requries that banks, accountancy firms and other similar persons (Reporting Persons) collect a range of information whenever they process electronic funds transfers (either domestic or international) or currency transactions (any cash-based transaction involving deposit, withdrawal, exchange, payment or receipt of currency in Tanzanian Shillings or any foreign currency).

Amongst other information, the following must be collected:

full address and place of business where the transaction occurred

date and time of the transaction

value of the transaction

identity documents of the parties involved in the transaction

2. Obligation to report currency transactions and electronic fund transfers (regulation 5 of the Regulations)

   This provision requires that Reporting Persons report to the Financial Intelligence Unit, any currency transaction in Tanzanian Shillings or foreign currency that is equivalent to US $10,000 or more in the course of a single transaction.

   This provision further asserts that Reporting Persons must report to the Financial Intelligence Unit, an electronic funds transfer involving Tanzanian Shillings or foreign currency that is equivalent to US $1,000 or more, in the course of a single transaction.

   When reporting currency transactions or electronic funds transfers, Reporting Persons shall fill in and provide the information set out in the Schedules to the Regulations.

   In determining the exchange rate for the purposes of knowing whether to report a particular transaction or not, Reporting Persons must pay regard to the official conversion rate of the Bank of Tanzania that is in effect at the time of the transaction.

3. Circumstances where attorneys, notaries and independent legal professionals shall report currency transactions (regulation 6 of the Regulations)

   This...