Tanzania Country Summary

FATF Status

Tanzania is no longer 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, with persistent issues in human trafficking, smuggling, and organized crime, particularly in sectors like wildlife and drug trafficking. Despite having laws and institutions aimed at combating corruption, the effectiveness of these measures is undermined by a culture of impunity, limited access to information, and a judicial system that is often underfunded and susceptible to political pressure.

Tanzania's economy is characterized by a strong push for foreign direct investment (FDI) to foster development and growth, yet significant challenges persist in the investment climate. Investors cite issues such as inconsistent tax policies, corruption, bureaucratic delays, and difficulties in hiring foreign workers as major obstacles. While the government has initiated reforms and established investment promotion agencies, the practical recognition of incentives remains limited, and a lack of trust between the private sector and the government continues to hinder investment prospects.