Assessment of money laundering prevalence in commercial banks of Tanzania: A case study of ten commercial banks operating in Tanzania
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Date
2013
Authors
Journal Title
Journal ISSN
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Publisher
Mzumbe Unversity
Abstract
The main objective of this study was to assess the prevalence of money laundering in commercial banks operating in the United Republic of Tanzania. Both purposive and simple sampling methods were used to select 10 out of 45 commercial banks operating in the United Republic of Tanzania specifically Dar es Salaam due to time and financial constraints. Both secondary and primary methods for collecting data were used. Semi-structured in-depth interview questions were employed as the main instrument for collecting primary data and the collected data were analyzed. The findings indicated that 100% of the respondents from all commercial banks have knowledge and are aware of money laundering. Most commercial banks have taken several measures to mitigate the effects imposed by money laundering such as conducting money laundering awareness training programs, complying and cooperating with BOT and other international anti money laundering policies, and strengthening know your customer controls (KYC). Furthermore efforts made by the government have helped commercial banks fight money laundering by Creating awareness, and reducing the risk of operations. The researcher recommends that the government has to educate its citizens on money laundering and commercial banks need to conduct ongoing money laundering training programs to their staff and customers. Commercial banks should also ensure that there are internal procedures, policies and audit functions to test the system and ensure adequate compliance. Also the study found that good governance is an important tool for successful fight against money laundering and terrorists financing. And the government has to support the regulatory agencies for money laundering in implementing the Money laundering Act of 2007 as amended in 2012 by providing it with the advanced information technology systems and equipments, sufficient investigative, competent and committed professionals reduce corruption and bring transparency and regulatory agency shouldn’t be politically interfered by the government
Description
A research dissertation submitted in partial fulfillment of the requirements for the award of the Degree of Master of Science in Accounting and Finance (MSc-A&F) of Mzumbe University Dar es Salaam Campus College
Keywords
Money laundering, Commercial banks, Terrorism regimes
Citation
APA