Tanzania Fines Five Banks for Breaching Anti-money Laundering Rules

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The Bank of Tanzania (BoT)

Tanzania’s central bank has fined five commercial banks over $800,000 for breaching anti-money laundering rules. The Bank of Tanzania (BoT) said the fines were imposed “For failure to conduct proper customer due diligence and file suspicious transaction reports to the (state-run) Financial Intelligence Unit (FIU).”

  1. African Banking Corporation (T) Limited TZS 145 million shillings
  2. Equity Bank (Tanzania) Limited TZS 580 million shillings
  3. I&M Bank (T) Limited TZS 655 $284,782.61
  4. UBL Bank (T) Limited TZS 325 million shillings
  5. Habib African Bank Limited TZS 175 million shillings

I&M Bank was slapped with the biggest fine at 655 million Tanzanian shillings ($284,782.61), followed by Equity Bank (580 million shillings), UBL Bank (325 million shillings), Habib African Bank (175 million shillings) and African Banking Corporation (145 million shillings).

In addition to the penalties, the banks have been directed to implement corrective measures within three months from the date the penalties were imposed.

These include making a fresh review of all Know Your Customer (KYC) compliance status and ensure that proper documentation are in place and taking disciplinary measures to all staff who were involved in the opening of implicated deposit accounts contrary to KYC requirements.