THE EFFECTIVENESS OF ANTI MONEY LAUNDERING LAWS TOWARDS TANZANIAN ECONOMY
Authors:
Eva Ludger Komba
Abstract:
This paper discusses “The Effectiveness of Anti Money Laundering Laws Towards Economy of Tanzania”. It introduces the conceptual aspect of money laundering in Tanzanian context, showing the history of money laundering and the need of regulation at domestic level as a response to the crime. Then, it focuses on Anti money laundering laws and financial institutions as the necessary means of preventing and controlling the crime. It explains various legislations on money laundering at domestic level and international cooperation due to its transnational nature of the crime. Evidently, in the findings the weakness of the law and enforcing agencies and this will be achieved only by intensifying the existing legislations and enforcing agencies as well. Furthermore, it analyses money laundering and its impacts to Tanzanian economy. It discusses the negative impacts of money laundering such as damaged financial institutions, inflation and distortion of competition market in the country. Then it goes on to discuss money laundering in the context of corruption and Tax evasion. Additionally, it discusses money laundering and macroeconomic stability as well as capital and trade flows in Tanzania. Then it deals with confiscation of laundered asset and asset recovery from money laundering criminals in Tanzania and challenges of controlling the crime which in one way or another hampered the development of the country. It concludes that money laundering is a very serious crime and has negative impact to the Tanzanian economy since huge amount of money end in the hands of few criminals for their personal benefits which could be used for economic development of the country. This paper calls upon government to create a strong legal and institutions framework so as to build strong economy in the country.