AfricaPress-Tanzania: A CONTROLLER and Auditor General (CAG) performance report on the implementation of national initiatives on combating money laundering shows that despite the existence of an institutional framework, it is not functioning as effectively as expected in the promotion, detection and deterrence of money laundering in the country.
According to the performance report submitted to President John Magufuli last most, auditing findings show that the non-adherence to anti-money laundering requirements by implementing agencies and the absence of a mechanism to coordinate the implementing agencies at operational level are cited as major challenges.
According to the report, the Ministry of Finance and Planning, the National Multi-Disciplinary Committee on Anti-Money Laundering and the Financial Intelligence Unit (FIU) are operating under an institutional framework which is not functioning optimally for combating money laundering in the country.
Due to inadequate functioning of the institutional framework, non-compliance by the implementing agencies and the absence of strong coordination mechanisms by the National Anti-Money Laundering Committee has made it difficult in the planning and implementation of initiatives to combat money laundering in the country.
The report has a number of recommendations to the institution framework and to the Ministry of Finance and Planning to ensure the FIU and other implementing agencies have the capacity and resources to effectively implement the anti-money laundering strategies and plans.
To the National Multi-disciplinary Committee on Anti-Money Laundering the audit report recommends it to develop an anti-money laundering policy and strategy to facilitate prompt implementation of initiatives to combat money laundering in the country.
Moreover, it has been advised to devise a mechanism for anti-money laundering stakeholders who will facilitate wide sharing of information on the implementation of the initiatives among the implementing agencies.
It also recommends formulating an institutional policy framework of regulators to all unregulated sectors identified as prone to money laundering.
On top of that the performance audit reports calls for the adherence to a reporting mechanism, guidelines, agreements, and defined procedures for reporting anti-money laundering information.
The Financial Intelligence Unit has been directed to effectively enforce the anti-money laundering mechanism to ensure all identified reporting persons produce and submit suspicious transaction reports from the sector on time and in an intelligible manner for timely analysis to add value on intelligence reports.
The intelligence unit should also harmonise inspection conducted with those carried out by regulatory bodies to ensure smooth inspection and avoid duplication of efforts and enhance the ability to promptly take corrective actions on compliance shortfalls.
Another thing is the enhancement of training and public awareness for reporting persons and stakeholders such as law enforcement agencies and sector regulators to enhance voluntary compliance with money laundering reporting requirements.
The audit report further recommends the intelligence unit to devise a mechanism that will ensure that all anti-money laundering statistics are readily available and maintained at the FIU.
FIU has also been advised to devise clear working and coordinated feedback mechanisms that will ensure that feedback is given for all information disseminated and shared among implementing agencies within the anti-money laundering framework.
It should as well ensure that all implementing agencies develop mechanisms to implement laws, strategies and activities that include developing the anti-money laundering coordination framework to combat money laundering.
Moreover, it must ensure that FIU and sector regulators regularly issue and use anti-money laundering guidelines to ensure compliance with anti-money laundering requirements.
The recommendations follow audit findings and the conclusion highlights some weaknesses on the implementation of national initiatives to combat money laundering in the country.
The performance report states that weaknesses are measured through three parameters, namely the institutional framework for combating money laundering, the level of implementation of initiatives by implementing agencies and a coordination mechanism in combating money laundering in the country.
“The National Audit Office believes that to improve the system used to combat money laundering in the country, the recommendations made in this report need to be fully implemented as they will ensure the attainment of the economy, efficiency and effectiveness in the use of public resources,” reads part of the report.
