For breaching anti-money laundering rules, five commercial banks have been fined by the Central Bank of Tanzania.
The commercial banks were fined over $800,000 for breaching anti-money laundering rules, the latest in a series of moves aimed at tightening regulation in the financial services sector.
The Bank of Tanzania (BoT) said in a statement the fines were imposed “for failure to conduct proper customer due diligence and file suspicious transaction reports to the (state-run) Financial Intelligence Unit (FIU).”
I&M Bank was slapped with the biggest fine at Tsh655 million ($284,782), followed by Equity Bank Tsh580 million ($252,415.), UBL Bank Tsh325 million ($141,439.), Habib African Bank Tsh175 million ($76,145.) and African Banking Corporation Tsh145 million shillings ($63,091).
The regulator gave three months to the sanctioned banks to implement various anti-money laundering measures, which include taking disciplinary action against all staff members “who were involved in opening implicated deposit accounts contrary to KYC (know your customer) requirements”.
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