Money laundering, terrorist financing and proliferation financing (ML/TF/PF) are criminal offences with serious consequences to socio-economic and global security. ML/TF/PF triggers other crimes with adverse effects to the entire community worldwide. These crimes undermine the rule of law and good governance, leading to financial and economic instability. Money laundering, terrorist financing and proliferation financing crimes are global concerns and for this reason the United Nations through various conventions such as the Vienna Convention (1988) against Illicit Traffic in Narcotic Drugs and Psychotropic Substances; the Palermo Convention (2000) against Transnational Organized Crime; Convention for the Suppression of Financing of Terrorism (1999) and later on United Nations Security Council Resolutions 1718 and 1737 (2006) on proliferation financing required, among other things, member countries to criminalize money laundering, terrorist financing and proliferation financing. The United Republic of Tanzania is signatory to those conventions. To combat these crimes, the international community has developed further measures such as creation of the Financial Action Task Force (FATF) in 1989 which sets standards to combat money laundering, terrorist financing and proliferation financing also well known as FATF Standards. These standards are observed and implemented by jurisdictions worldwide. The United Republic of Tanzania has taken various initiatives to domesticate the United Nations Resolutions, International and Regional agreements in combating ML/TF/PF in order to safeguard principles of socio-economic and good governance including putting in place an appropriate legal and institutional framework. The most relevant legal framework in the URT includes: Proceeds of Crime Act (Cap.256); the Anti-Money Laundering Act (Cap.423); the Anti-Money Laundering and Proceeds of Crime Act, No. 10 of 2009 of Zanzibar; and the Prevention of Terrorism Act (Cap.19). The enacted laws criminalize money laundering, terrorism financing and proliferation financing. In terms of institutional framework, various relevant institutions have been established including the National Multi-Disciplinary committee on Anti-Money Laundering (NMDC) and the Financial Intelligence Unit (FIU) while various other institutions have been designated as law enforcement agencies in combating the crimes and as reporting persons both in public and private sectors. The Government of United Republic is committed to ensuring that efforts will continue to be made to implement the FATF Standards effectively. Despite the efforts made, a number of deficiencies were identified by the National Money Laundering and Terrorist Financing Risk Assessment (NRA) conducted from September 2015 to December 2016 and the second round Mutual Evaluation Report adopted by the Eastern and Southern Africa Anti-Money Laundering Group ESAAMLG) Council of Minister in June 2021. The deficiencies relate to general lack of awareness among members of the public on ML/TF/PF and absence of formal AML/CFT/CPF training and awareness raising programmes, absence of mechanism for monitoring the registration of DNFBPs, non-application of effective, proportionate, and dissuasive sanctions for noncompliance particularly with regard to filing and submitting STRs; non- availability of comprehensive and updated basic beneficial ownership information on legal persons and legal arrangements; inability of law enforcement agencies to pursue money laundering investigations and prosecutions, including through parallel financial investigations for predicate offences in line with the risk identified in the NRA; lack of a legal procedures for maintaining and dealing with confiscated/ seized/forfeited assets or instrumentalities used or intended to be used in ML crimes; and generally problems related to cash based economy and hawala. These deficiencies, to a greater extent, emanates from the lack of (AML/CTF/CPF) policies or appropriate strategies to address them. This Strategy is intended to create an enabling environment for effective coordination of efforts against money laundering, terrorist financing and proliferation financing and will lead to efficient and effective implementation of preventive measures, the rule of law, good governance and risk- based approach to vulnerabilities and risks in the country. Last but not least, I reiterate the Government’s commitment towards continued efforts to implement ML/TF/PF preventive measures and international good practices and standards. The success of this Strategy will, to a greater extent, depend on cooperation among all stakeholders. I welcome the continued collaboration and participation of all stakeholders in implementing this Strategy, in order to realize the broader goals of our country of achieving minimal money laundering, terrorist financing and proliferation financing, if not eliminating the crimes completely. I hereby extend my sincere appreciation to all the stakeholders for their efforts and invaluable contributions. ________________________________ Dr. Mwigulu Lameck Nchemba Madelu (MP) Minister for Finance and Planning