The development of money laundering schemes as the challenge to the establishment of an effective anti-money laundering regime in Tanzania

Money laundering is as long as human history only it became more relevant after the September 11th in 2001 after several suspected terrorists hijacked four commercial planes and crashed them in a suicidal mission to various buildings in New York, and Washington in the United States. Global terrorism, cyberlaundering, crime cartels and tax haven are taken to be the major forces behind the rapid increase in money laundering activities despite the fact that money laundering long predates such influences. The world in general and developing countries in particularly have in recent years experienced a massive increase in money laundering activities, when more countries are opening up their economies as part of globalisation which provides conducive environments for money launderers. To many Tanzanians money laundering has been a totally alien concept only coming to the life after the September 11 even though money laundering long predates such an incidence in Tanzania. This research has revealed that despite its sheer magnitude money laundering is underestimated in Tanzania due to either lack of information about it or by deliberate efforts by those who benefits out of it. Tax evasion, corruption, embezzlement of public funds, smuggling, illegal arms sales have been pointed out to be amongst the leading activities that generates income for money launderers in Tanzania. The introduction, overhauling and amendments of some laws, together with effecting changes in some administrative set ups and the need for more international cooperation are amongst the recommendations put forward in a bid to curb money laundering in Tanzania.