DAR ES SALAAM — Tanzania’s removal from the Financial Action Task Force (FATF) grey list is helping strengthen international banking relationships and improve the country’s financial reputation, as reforms to combat money laundering and terrorist financing begin delivering wider economic benefits.
The country’s exit from the increased-monitoring list in 2025 followed reforms to its anti-money laundering and counter-terrorism financing framework, addressing regulatory gaps identified by the international financial watchdog.
Bank of Tanzania Legal Officer Lilian Mawala said the previous listing had subjected Tanzanian financial institutions to greater scrutiny, often resulting in additional requirements for international transactions and making it more difficult to establish relationships with overseas financial institutions.
With the country’s removal, Tanzanian banks are now better positioned to cooperate with international counterparts, potentially reducing compliance-related obstacles in cross-border payments and financial transactions.
Mawala said the reforms involved amendments to key legislation, stronger regulatory oversight and improved enforcement mechanisms across the financial sector. The central bank also assumed supervisory responsibilities relating to virtual assets and their service providers to strengthen compliance with international standards.
The changes carry implications for businesses that depend on international payments, trade finance and overseas investment. Improved confidence in the country’s regulatory environment can support relationships with international lenders, correspondent banks and investors, although the scale of any reduction in transaction costs has not been quantified.
The Bank of Tanzania has also recognised the delisting as an important milestone in strengthening the country’s financial integrity, highlighting improvements in regulatory coordination, supervision and institutional capacity.
However, maintaining these gains will require continued enforcement. Tanzania is scheduled for another assessment in 2028 through the Eastern and Southern Africa Anti-Money Laundering Group, which evaluates the effectiveness of member countries’ financial safeguards.
The challenge for Tanzania is to sustain the reforms beyond its removal from the list, ensuring that stronger financial oversight translates into lasting confidence, smoother international financial relationships and a more resilient investment environment.
