The Bank of Tanzania (BoT) announced it is fining five banks for not complying with the anti-money laundering procedures. BoT said the banks did not report suspicious transactions to the Financial Intelligence Unit (FIU).

The total amount of fines is 1.8 billion Tanzanian shillings ($818,314) with the heaviest fine (655 million Tanzanian shillings) imposed on I&M Bank Tanzania Limited, the local subsidiary of Kenyan I&M Bank Limited. Equity Bank Tanzania Limited, the subsidiary of Kenyan financial services group Equity Group Holdings Limited, was sanctioned for 580 million Tanzanian shillings.

UBL Bank Tanzania Limited, the subsidiary of the Pakistani banking group United Bank Limited (UBL), is to pay 325 million Tanzanian shillings. Habib African Bank Limited and African Banking Corporation Tanzania Limited were sanctioned with 175 and 145 million shillings, respectively.

Sanctioned banks are urged to implement corrective measures within three months. These include reporting suspicious transactions to the FIU, putting in place the necessary measures to strengthen controls during transactions.

Chamberline Moko