Screws tightened on illicit cash

INDIVIDUALS found to have contravened the provisions of a law on antimoney laundering passed by parliament last year, will effective July 1, this year, be liable to a fine of not more than 500m/- and not less than 100m/- or be jailed for between five and ten years or both.

DAILY NEWS Reporter

 

INDIVIDUALS found to have contravened the provisions of a law on antimoney laundering passed by parliament last year, will effective July 1, this year, be liable to a fine of not more than 500m/- and not less than 100m/- or be jailed for between five and ten years or both.

 

The Minister for Finance, Mrs Zakia Meghji, told the ‘Daily News’ yesterday that President Jakaya Kikwete signed the law on January 5, and that it takes effect on July 1, this year.

 

Corporate offenders under the law would be fined a maximum of 1bn/- or a minimum of 500m/- or be ordered to pay up to three times the market value of the cash in question, depending on which amount was greater.

 

The law also holds all directors, managers, controllers, partners or anyone in a management position of a company liable to the same penalties unless they proved that the offences were committed without their consent or connivance.

 

However, they have to prove that they tried to prevent the commission of such offences. The law also binds “any person who would have committed an offence if any act had been done or omitted to be done by him personally.”

 

The law defines money laundering as engagement of a person or persons directly or indirectly in conversion, transfer, concealment, disguising, use or acquisition of money or property known to be of illicit origin and in which such engagement intends to avoid the legal consequences of such action.

 

Offences listed under the law are many, but they include financing terrorist actions, illicit arms trafficking, illicit drug peddling, organised crime, trafficking in human beings and smuggling immigrants, sexual exploitation and child abuse.

 

The law also provides for the establishment of a Financial Intelligence Unit (FIU) within the Treasury, to be headed by a commissioner that would monitor and report to the appropriate law enforcement agencies any suspicious financial
transactions.

 

Apart from FIU, there would also be established national multi-disciplinary committee on anti-money laundering to formulate, asses and improve the effectiveness of the policies
and measures to combat money laundering.

 

Source: Daily News