SPEECH BY HON. ABDISALAAM ISSA KHATIBU (MP) DEPUTY MINISTER FOR FINANCE, AT OFFICIAL OPENING OF TRAINING WORKSHOP ON ANTI-MONEY LAUNDERING AND COMBATING FINANCING OF TERRORISM, FINANCIAL CRIME AWARENESS AND PREVENTION ORGANIZED BY DOWNTONHILL DAR ES SALAAM 23 RD JULY, 2007 Mr. Kevin Rose, Workshop Coordinator; Resource Persons; Participants; Ladies and Gentlemen. It is a great honor and privilege for me to be here today to officiate at this important workshop. I wish to thank Hon. Zakia Hamdani Meghji, (MP) Minister for Finance for nominating me to represent her at this occasion. May I take this opportunity on behalf of the Government of the United Republic of Tanzania to express my sincere appreciation to M/S DowntonHill for offering to organize this important training in Tanzania. The training on Anti-Money Laundering and Combating Page 1 of 6
Financing of Terrorism, Financial Crime Awareness and Prevention is taking place at a very opportune time as Tanzania s Anti-Money Laundering Act 2006 became operational on 1 st July, 2007. Ladies and Gentlemen, crime and financial crime in particular can only be comprehensively defeated in a country if there is clear and sustainable partnership developed between the public and private sector in developing policies, laws, regulation and industry practices that address this challenge in a cohesive way. I believe that the success of any national strategy to fight financial crime and its related activities such as money laundering and financing terrorism lies in the ability of the country to have effective legal, regulatory and preventative measures. But perhaps of greater significance/importance is the existence in the regime of strong and capable enforcement mechanisms so that whenever the law is violated the systems is able to investigate, apprehend, successfully prosecute and punish those who attempt to benefit from the proceeds of criminal activities. As you are all aware, most crime is motivated by profit. Finance crime, where it thrives is a vehicle for super profits. Criminals are able to profit from the proceeds of their crime when they successfully launder these proceeds into the formal sector of the economy. Those who are bent towards distabilizing civil societies and spreading anarchy in society would fund terrorist activities to wage war Page 2 of 6
on innocent people and to erode the authority of legitimate governments. Where crime thrives legitimate and progressive governments have no place. Ladies and Gentlemen, the pursuit and recovery of the proceeds of financial crime can therefore make significant contribution to crime reduction and the creation of a safe and just society. Tanzania has a fast evolving financial sector that has been growing steady since the mid 1980s. Tanzania has over 20 banks, a fast growing capital market, insurance sector and other forms of financial services. The government policy is geared towards the encouragement of the growth and expansion of competitive financial sector in the years ahead. This poses a major challenge of ensuring that all stakeholders in the sector keep ahead of the growing threat posed by financial crime. It is in this context that I particularly welcome this training workshop which as the brochure indicates brings together stakeholders in a new ethnos of public private sector cooperation. Ladies and Gentlemen, Tanzania has recently enacted the Prevention and Combating Corruption Act, 2007, to compliment the Anti - Money Laundering Act other legislations are; - The Prevention of Terrorism Act 2001, - The Bank of Tanzania Act 2006, Page 3 of 6
- The Banking and Financial Institutions Act 2006, - The Proceeds of Crime Act, CAP 256, - The Economic and Organized Crime Control Act CAP 200 - The Mutual Assistance in Criminal Matters Act, CAP 250 In this regard Tanzania is confident that these pieces of legislations can assist in minimizing financial crime and money laundering. We however, have a major challenge ahead of us of making the legal regime to work successfully. With appropriate cooperation with the private sector, I believe Tanzania should be able as a country to develop effective regulatory framework competence and efficiency in both the concerned public and private sector stakeholders to get rid of financial crime in our institutions and society. One of the key institution to be created by the 2006 Anti-Money Laundering Act is the Financial Intelligence Unit (FIU) that is charged with the responsibility of receiving, analyzing and disseminating suspicious transaction reports and other information regarding potential money laundering or terrorist financing received from reporting institutions and other sources from within and outside Tanzania. All participants in this workshop are key stakeholders, either as reporting persons or enforcement agencies. It is my expectation that the FIU, when fully operational will assist enormously in enabling us to successfully prosecute money launderers. Page 4 of 6
I hope that over the next five days of your training, this workshop will highlight ways in which all of you as stakeholders in both public a nd private sector can work effectively with the FIU and other organs in order to improve the capacity of preventing and ultimately eradicating financial crime. I note from the various themes in the topics to be discussed, you will be able to gain comprehensive understanding of the vulnerabilities that we face, preventative measures that need to be put in place, and investigation and prosecuting skills. I believe the Workshop will provide an opportunity for all stakeholders represented here to share experience on the challenges that you are facing in your sector s. It might also be possible to develop national best practices, reflecting the realities in our various sectors. It is my hope that this workshop will not be a one off event but an event that will open up a process of dialogues among the stakeholders represented so that you can all develop the skills to fight financial crime in an incremental way in the months ahead. I would urge all the stakeholders to develop a follow up programme that would ensure that the skills you acquire in this workshop are further disseminated and constantly up-graded. Page 5 of 6
Fighting financial crime is a part of Good Governance and a major challenge for us in the months and years ahead, as financial criminals become more sophisticated. It is however, a fight worth taking to its logical conclusion. As stakeholders in the financial sector, we have a challenging period ahead of us in developing Anti Money Laundering and Combating Financing of Terrorism Practices in all our sectors to the standards expected by the international standard setters. I believe that with effort and determination all stakeholders here present can play their role effectively. This workshop provides us with the opportunity to do so. As I draw towards the end of my presentation, allow me to recognize and extend a heartly welcome to visitors from outside our borders. I hope you will find time outside your busy schedule to sample the truly Tanzanian hospitality that Dar es Salaam has to offer. Feel free to move around the country and enjoy the peace and tranquility that characterized this beautiful nation called Tanzania. Workshop organizers, Resource Persons Participants, Ladies and Gentlemen I now have the pleasure to declare this workshop officially opened. Thank you for your kind attention. 23 rd July 2007 Page 6 of 6