Global Financial Integrity (GFI) has published a new report titled “Illicit Financial Flows Risks Related to Beneficial Ownership in the Mining Sector in Tanzania.” The report provides an analysis of the risks associated with illicit financial flows (IFFs) in Tanzania’s mining industry, with a focus on beneficial ownership.
Tanzania’s mining sector has long been a cornerstone of the country’s economy, contributing significantly to its GDP and foreign exchange earnings. However, the report reveals risks related to illicit financial flows (IFFs) and beneficial ownership that threaten to undermine the sector’s potential. These risks are compounded by gaps and challenges in the implementation and enforcement of beneficial ownership regulations, which are crucial for ensuring transparency and accountability in the mining industry.
The GFI report identifies significant gaps in the implementation and enforcement of beneficial ownership regulations in Tanzania’s mining industry. The report emphasizes how these gaps exacerbate the risk of IFFs, ultimately undermining the economic benefits that the sector could provide to Tanzania.
To address these challenges, the report offers several key recommendations aimed at strengthening Tanzania’s regulatory and enforcement frameworks. These recommendations include:
- Improve and implement AML and CTF legislation to prevent illegal financial operations.
- Ensure current rules and regulations are thorough and up-to-date to address growing risks and vulnerabilities.
- Implement steps to increase openness in financial transactions, such as beneficial ownership disclosure requirements.
- Participate in information-sharing agreements with other nations to combat cross-border illegal financial activity.
- Implement steps to increase openness in financial transactions, such as beneficial ownership disclosure requirements.
- Conduct frequent risk assessments to detect financial system weaknesses and change plans as needed.