The Bank of Tanzania (BoT) wants uninhibited autonomy granted to financial institutions and agencies that monitor illicit financial flows (IFFs) in the country.

In an exclusive with The Guardian, central bank Governor Prof Benno Ndulu also called for the watchdog institutions to be given human and financial support to enable them to operate more efficiently and effectively. 

He said Tanzania has in place independent government institutions and agencies responsible for preventing illicit financial flows and emphasised that they should be given candid independence if they are to discharge their duties as expected of them.

Entities mandated to deal with IFFs in Tanzania are the Police Force, the Prevention and Combating of Corruption Bureau (PCCB), the Immigration Department, the Tanzania Revenue Authority and the Financial Intelligence Unit (FIU).

“We also have regulatory agencies and authorities such as the Bank of Tanzania, Capital Market and Securities authority (CMSA),” he said.

Others are the Tanzania Insurance Regulatory Agency (TIRA), Social Security Regulatory Authority (SSRA), Tanzania Communications Regulatory Authority (TCRA) and Surface and Marine Transport Regulatory Authority (SUMATRA).

“In addition, the Parliament has already enacted several laws to curb illicit financial flows, including the Ant-Money Laundering Act of 2006 as amended in 2012,” he noted.

“The Bank of Tanzania is in a move to enhance its supervisory and regulatory role especially in the area of money laundering and is working hand in hand with the FIU and PCCB and other regulatory bodies with the view of eliminating all forms of illicit financial flows in the country,” he said. 

However, despite all these watchdogs, the director acknowledged that the problem of illicit financial flows continues to be a major deterrent to development efforts robbing the nation much need revenue.

He cited several studies to this effect including the Ndikumana, Boyce and Ndiaye (2015) that listed Tanzania as the eighteenth country over 39 countries in Africa with $14.7 billion of IFFs. 

“Kar and Spanjers (2014) lists Tanzania as the 81st country over 145 countries, with an average IFF of $462 million and a cumulative IFFs of $4.6 billion in the period 2003-2012,” he added.

He said UNDP (2011) listed Tanzania as the twenty-second country over 45 least developed countries, with $2.29 billion in IFF, representing 2.88% of GDP annually in 1990-2008.

“The BoT would like to have a financial system that is safe, sound and stable. Illicit financial flows like money laundering, if left unchecked are likely to bring severe negative impact, socially, economically and politically in the country,’ he warned. 

“Currently, the Bank of Tanzania under Norwegian sponsorship is undertaking a study on IFFs which is expected to be finalised in December 2015,” the Governor announced. 

Detailing on the development, he said the study is being facilitated by International Consultants who are supervised by a Steering Committee comprised of members from various government ministries, departments and agencies.

The Bank of Tanzania is in a move to enhance its supervisory and regulatory role especially in the area of money laundering and is as well working hand in hand with FIU and PCCB and other regulatory bodies with a view to eliminate all forms of illicit financial flows in the country. As stated earlier, the recommendations from the study are expected to unveil new international best practices and methodologies in eradicating or minimising the problem.