Tanzania Country Summary

FATF Status

Tanzania is on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Tanzania was undertaken in 2024. According to that Evaluation, Tanzania was deemed Compliant for 7 and Largely Compliant for 13 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness ratings.

Tanzania faces significant challenges related to crime and corruption, despite having established laws and institutions aimed at combating these issues. Corruption remains a pervasive problem, with various sectors, including government and law enforcement, experiencing high levels of illicit activity, while the country is also a hub for human trafficking, counterfeit goods, and organized crime, highlighting the need for more effective governance and judicial reforms.

Tanzania has demonstrated resilience in its economy, achieving lower-middle-income status in July 2020 after two decades of growth, supported by a robust macroeconomic foundation and diverse economic sectors. Despite facing challenges such as bureaucratic hurdles, tax administration issues, and regulatory inefficiencies, the government under President Samia Suluhu Hassan is actively working to improve the investment climate through reforms, including the 2022 Investment Act which aims to enhance the facilitation of foreign direct investment. Opportunities for investment are abundant, particularly in sectors like agriculture, tourism, and energy, although investors must navigate ongoing legislative obstacles and corruption concerns that can complicate the business environment.