Legal affairs

National regulatory framework regarding AML and effective date of the regulations

National regulator or relevant authority for AML controls

Customer Due Diligence

Conduct of a typical KYC identification process

• Ordinarily, the applicant needs to show an official record reasonably capable of establishing the true identity of the applicant. This official record can be a birth certificate or an affidavit to that effect; a passport or other official means of identification; in the case of a corporation, a copy of the organization’s Memorandum and Articles of Association and a certificate of incorporation together with the latest annual reports certified by the Registrar of Companies; and any other documents as may be prescribed by the Minister in the regulations.
• Additionally, if a person is acting on behalf of another person, the reporting person shall take reasonable measures to establish the true identity of any person on whose behalf or for whose ultimate benefit the applicant may be acting in the proposed transaction, whether as trustee, nominee, agent or otherwise.
• The Guidelines for the Verification of Customers’ Identities issued by the FIU further elaborate on due diligence measures.
• If the client is a natural person, lawyers shall verify the client’s information by:

1. Comp

a. Reviewing a copy of the latest periodical reports and accounts (for established corporate entities);
b. Conducting an enquiry confirming submitted documents;
c. Communicating with registered authorities on the authenticity of registration certificates;
d. Undertaking an entity search to ensure that the entity has not been, or is not in the process of being, dissolved, struck off, wound up or terminated;
e. Utilising an independent information verification process, including accessing public and private databases;
f. Comparing the registered name, registration number and registered address with the most recent official Memorandum and Articles of Association / establishment deeds or constitutional/ governing documents and version of the Certificate of Incorporation/ registration bearing the stamp of the incorporating / registering authority;
g. Comparing the trade name and business address with information which can be reasonably be expected to achieve such verification like visiting the entity, where practical;
h. Contacting the entity by telephone, mail, or email;
i. Comparing the Tax Identification Number with documents issued by the Tanzania Revenue Authority bearing such a number; and
j. For foreign entities, by comparing the particulars with an official document issued by an authority for recording the incorporation and registration of entities in that country.
k. Additionally, collecting residential address and contact particulars of the Directors, shareholders who hold 5% of more of the voting rights at a general meeting of the entity concerned and agents of the entity.

Possibility to meet customer due diligence requirements by relying on third parties who are obliged by law themselves to comply with AML regulations

Possibility to outsource customer due diligence by contract to other third parties who are not obliged by law to meet AML regulations and rely on these (e.g., WebID, IDnow, PostIdent)

Presence of a license or registration requirement for the third party in case of outsourcing customer due diligence

Further questions

Entities that could be relied on specifically by law as a third party to comply with AML regulations (regardless of outsourcing)