Zanzibar, which is known for being a haven for money launderers, has introduced a new anti-money laundering (AML) law that requires anyone moving more than USD $10,000 out of the country to first state their intentions with the Tanzanian Revenue Authority. Tanzania already introduced this law back in 2012 but it was just recently extended to Zanzibar in the hopes that the public would see the importance of declaring their financial status in an effort to help prevent money laundering.
The law is a huge step for Zanzibar which previously had no restrictions on the physical transportation of money. The US International Narcotics Control Strategy Report (INCSR) from 2015 reported that many of the money laundering schemes in Zanzibar were in the form of foreign investments in the tourist industry. The Bank of Tanzania estimated that up to $650 million was transferred from Zanzibar every month through mobile transfers.
Along with the new AML law, the government put stricter foreign exchange market controls in place by raising the minimum capital requirement for businesses, placing moratoriums on new operations and requiring traders to apply for new licenses.
For the full article, click here.