Identifier
Created
Classification
Origin
06DARESSALAAM1849
2006-11-21 03:50:00
UNCLASSIFIED
Embassy Dar Es Salaam
Cable title:
TANZANIAN PARLIAMENT PASSES ANTI-MONEY LAUNDERING
how-toVZCZCXRO4594 PP RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN DE RUEHDR #1849/01 3250350 ZNR UUUUU ZZH P 210350Z NOV 06 FM AMEMBASSY DAR ES SALAAM TO RUEHC/SECSTATE WASHDC PRIORITY 5129 INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY PRIORITY RUEHKM/AMEMBASSY KAMPALA PRIORITY 2881 RUEHLO/AMEMBASSY LONDON PRIORITY 0268 RUEHNR/AMEMBASSY NAIROBI PRIORITY 0391 RUEHFR/AMEMBASSY PARIS PRIORITY 0174 RUEAWJA/DEPT OF JUSTICE WASHINGTON DC PRIORITY RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY RUEHLMC/MCC WASHINGTON DC PRIORITY
UNCLAS SECTION 01 OF 02 DAR ES SALAAM 001849
SIPDIS
SIPDIS
DEPT AF/E FOR B YODER; AF/RSA FOR M BITTRICK
S/CT FOR B PHIPPS
PASS TO MILLENNIUM CHALLENGE CORPORATION
ALSO TO AID/EGAT, DEPT OF TREASURY AND DEPT OF JUSTICE
LONDON AND PARIS FOR AFRICA WATCHERS
E.O. 12958: N/A
TAGS: PREL UNGA TZ
SUBJECT: TANZANIAN PARLIAMENT PASSES ANTI-MONEY LAUNDERING
BILL
REF: DAR ES SALAAM 0243
DAR ES SAL 00001849 001.2 OF 002
UNCLAS SECTION 01 OF 02 DAR ES SALAAM 001849
SIPDIS
SIPDIS
DEPT AF/E FOR B YODER; AF/RSA FOR M BITTRICK
S/CT FOR B PHIPPS
PASS TO MILLENNIUM CHALLENGE CORPORATION
ALSO TO AID/EGAT, DEPT OF TREASURY AND DEPT OF JUSTICE
LONDON AND PARIS FOR AFRICA WATCHERS
E.O. 12958: N/A
TAGS: PREL UNGA TZ
SUBJECT: TANZANIAN PARLIAMENT PASSES ANTI-MONEY LAUNDERING
BILL
REF: DAR ES SALAAM 0243
DAR ES SAL 00001849 001.2 OF 002
1. After nearly two years of drafting, re-drafting,
discussion and briefings, the Tanzanian Parliament passed the
"Anti-Money Laundering Act of 2006" on November 14 in Dodoma,
the legislative capital. A milestone in post's efforts to
advance counterterrorism, good governance and transparency
goals under our Mission Performance Plan, this legislation
opens the way for the establishment of a Financial
Intelligence Unit, a pillar of the USD 11.9 million
Millennium Challenge Threshold Account program signed by the
USG and the Government of Tanzania (GOT) in May 2006.
2. During the parliamentary floor debate before voting on
the Act, the local press reported that most Members of
Parliament (MP) hailed the bill as an important next step to
supplement GOT laws already on the books to track down the
criminal use of funds, including the "2003 Proceeds of Crime
Act." However, the MPs' principal concern during the debate
was to ensure that the executive branch step up and commit to
making the Act effective through quickly enacting strong
implementing regulations. Several Parliamentarians spoke out
that the implementation of the new law must "have teeth" to
enable law enforcement to track down "grand" corruption at
high levels, drug barons and money launderers. Other
Parliamentarians criticized the bill for not providing
adequate protection for whistle blowers.
3. The summary of the key elements of the 2006 "Anti-Money
Laundering Act" include provisions to:
-- finance and strengthen provisions to prevent and
prohibit money laundering;
-- provide for the disclosure of information on
money laundering;
-- establish a financial intelligence unit;
-- and to set up a national multi-disciplinary committee
on money laundering.
Among the money laundering activities defined as criminal
acts under the new law are corruption, terrorism, piracy,
forgery, drug trafficking, organized crime, human trafficking
and counterfeiting.
4. The Anti-Money Laundering Act was initially drafted by
the Ministry of Finance in late 2004, but was stalled for
almost 24 months primarily due do Tanzania's 2005
presidential and legislative campaigns and December 2005
general elections. This election ushered into office a new
administration under President Jakaya Kikwete and a new
Parliament with nearly fifty percent "freshman": i.e. first
term parliamentarians. Since January 2006, the Ambassador
had repeatedly raised the importance of rapid passage of this
bill with senior Tanzanian officials, including President
Kikwete, Speaker of the House Samuel Sitta, and Prime
Minister Edward Lowassa (reftel).
5. The Ministry of Finance is responsible for drafting the
implementing regulations to bring the Anti-Money Laundering
Act into force. In addition, the Ministry of Finance in
collaboration with USAID is organizing a roundtable scheduled
for January 16 for all stakeholders involved in the creation
and effective operation of the Financial Intelligence Unit
(FIU). The Ministries of Finance, Public Safety, Justice,
Ministry of Finance Zanzibar, Tanzania Revenue Authority,
Prevention of Corruption Bureau, other relevant GOT agencies,
the Bank of Tanzania, commercial banks, as well as
development partners, the World Bank, IMF and other
multilateral donors will be invited to examine and discuss
next steps to bring the FIU into operation.
Comment
--------------
6. The passage of the 2006 Anti-Money Laundering Act
represents the culmination of a team effort on part of the
entire Mission. Through post's close coordination with the
Ministry of Finance and the legislative branch of the GOT,
from early 2006 onward the bill moved steadily forward until
DAR ES SAL 00001849 002.2 OF 002
its passage on November 14. With USD 1.5 million in funding
from the Millennium Challenge Threshold Account program
already in the pipeline to establish the Financial
Intelligence Unit (FIU),once the implementing regulations
are enacted, the FIU can become fully active in a relatively
short time. In addition, the new law strengthens Tanzania's
legislative framework to address counterterrorism,
anti-corruption, counter-narcotics and anti-human trafficking
efforts. Post will continue to closely cooperate with all
relevant GOT agencies until the FIU is fully operational.
RETZER
SIPDIS
SIPDIS
DEPT AF/E FOR B YODER; AF/RSA FOR M BITTRICK
S/CT FOR B PHIPPS
PASS TO MILLENNIUM CHALLENGE CORPORATION
ALSO TO AID/EGAT, DEPT OF TREASURY AND DEPT OF JUSTICE
LONDON AND PARIS FOR AFRICA WATCHERS
E.O. 12958: N/A
TAGS: PREL UNGA TZ
SUBJECT: TANZANIAN PARLIAMENT PASSES ANTI-MONEY LAUNDERING
BILL
REF: DAR ES SALAAM 0243
DAR ES SAL 00001849 001.2 OF 002
1. After nearly two years of drafting, re-drafting,
discussion and briefings, the Tanzanian Parliament passed the
"Anti-Money Laundering Act of 2006" on November 14 in Dodoma,
the legislative capital. A milestone in post's efforts to
advance counterterrorism, good governance and transparency
goals under our Mission Performance Plan, this legislation
opens the way for the establishment of a Financial
Intelligence Unit, a pillar of the USD 11.9 million
Millennium Challenge Threshold Account program signed by the
USG and the Government of Tanzania (GOT) in May 2006.
2. During the parliamentary floor debate before voting on
the Act, the local press reported that most Members of
Parliament (MP) hailed the bill as an important next step to
supplement GOT laws already on the books to track down the
criminal use of funds, including the "2003 Proceeds of Crime
Act." However, the MPs' principal concern during the debate
was to ensure that the executive branch step up and commit to
making the Act effective through quickly enacting strong
implementing regulations. Several Parliamentarians spoke out
that the implementation of the new law must "have teeth" to
enable law enforcement to track down "grand" corruption at
high levels, drug barons and money launderers. Other
Parliamentarians criticized the bill for not providing
adequate protection for whistle blowers.
3. The summary of the key elements of the 2006 "Anti-Money
Laundering Act" include provisions to:
-- finance and strengthen provisions to prevent and
prohibit money laundering;
-- provide for the disclosure of information on
money laundering;
-- establish a financial intelligence unit;
-- and to set up a national multi-disciplinary committee
on money laundering.
Among the money laundering activities defined as criminal
acts under the new law are corruption, terrorism, piracy,
forgery, drug trafficking, organized crime, human trafficking
and counterfeiting.
4. The Anti-Money Laundering Act was initially drafted by
the Ministry of Finance in late 2004, but was stalled for
almost 24 months primarily due do Tanzania's 2005
presidential and legislative campaigns and December 2005
general elections. This election ushered into office a new
administration under President Jakaya Kikwete and a new
Parliament with nearly fifty percent "freshman": i.e. first
term parliamentarians. Since January 2006, the Ambassador
had repeatedly raised the importance of rapid passage of this
bill with senior Tanzanian officials, including President
Kikwete, Speaker of the House Samuel Sitta, and Prime
Minister Edward Lowassa (reftel).
5. The Ministry of Finance is responsible for drafting the
implementing regulations to bring the Anti-Money Laundering
Act into force. In addition, the Ministry of Finance in
collaboration with USAID is organizing a roundtable scheduled
for January 16 for all stakeholders involved in the creation
and effective operation of the Financial Intelligence Unit
(FIU). The Ministries of Finance, Public Safety, Justice,
Ministry of Finance Zanzibar, Tanzania Revenue Authority,
Prevention of Corruption Bureau, other relevant GOT agencies,
the Bank of Tanzania, commercial banks, as well as
development partners, the World Bank, IMF and other
multilateral donors will be invited to examine and discuss
next steps to bring the FIU into operation.
Comment
--------------
6. The passage of the 2006 Anti-Money Laundering Act
represents the culmination of a team effort on part of the
entire Mission. Through post's close coordination with the
Ministry of Finance and the legislative branch of the GOT,
from early 2006 onward the bill moved steadily forward until
DAR ES SAL 00001849 002.2 OF 002
its passage on November 14. With USD 1.5 million in funding
from the Millennium Challenge Threshold Account program
already in the pipeline to establish the Financial
Intelligence Unit (FIU),once the implementing regulations
are enacted, the FIU can become fully active in a relatively
short time. In addition, the new law strengthens Tanzania's
legislative framework to address counterterrorism,
anti-corruption, counter-narcotics and anti-human trafficking
efforts. Post will continue to closely cooperate with all
relevant GOT agencies until the FIU is fully operational.
RETZER