Tanzania Compliance Report

Generated 2026-09-22

Comprehensive Framework

Regulatory Overview

Regulatory Status: Dedicated crypto/VA legislation, licensing regime, active enforcement
Key Regulator(s): Bank of Tanzania Not Involved, Bank of Tanzania's, Bank of Tanzania Act, Ministry of Finance, Capital Markets and Securities Authority
Primary Legislation: Tanzania's anti-money-laundering statute is the Anti-Money Laundering Act, origi, The National Payment Systems Act, 2015 is Act No. 4 of 2015, assented on 25 Apri, National Payment Systems Act, The Capital Markets and Securities Act is Chapter 79 R.E. 2002 of the Laws of Ta, Assume AML/KYC obligations as per existing Tanzanian law and international stand, No dedicated law, regulation, or official gazette has been published in Tanzania, The Anti-Money Laundering Act (AMLA) of Tanzania imposes customer due diligence, Enhanced due diligence (EDD) requirements under Tanzanian AML law apply to polit, Record retention requirements under Tanzanian AML law mandate that financial ins, Beneficial ownership reporting requirements exist under Tanzanian company law an, The Value Added Tax (VAT) Act applies to the supply of goods and services in Tan, Clinical Research Regulation For Tanzania - ClinRegs - NIH
Travel Rule: Adopted — Threshold: Implemented

Key Facts

aml Tanzania's principal AML statute is the Anti-Money Laundering Act, Cap. 423 (Act No. 12 of 2006, R.E. 2023, commenced 1 July 2007), which imposes obligations on the class of 'reporting person' defined in section 3 paragraphs (a) to (j); the Anti-Money Laundering (Amendment) Act, 2022 (Act No. 2 of 2022, in force 8 March 2022) inserted definitions of 'virtual asset' and 'virtual asset service provider' into section 3 but left virtual asset service providers outside that class, which only a notice published in the Gazette by the Minister under paragraph (j) can extend. Tanzania's operative AML subsidiary legislation is the Anti-Money Laundering Regulations, 2022 (Government Notice No. 397 of 3 June 2022), amended by the Anti-Money Laundering (Amendment) Regulations, 2023 (Government Notice No. 853E of 22 November 2023); regulation 30 of GN No. 397 revoked the Anti-Money Laundering and Counter Terrorist Financing Regulations, 2012 (GN No. 289 of 2012), and neither the 2022 regulations nor the 2023 amendment mentions virtual assets or virtual asset service providers. Tanzania's counter-terrorism statute is the Prevention of Terrorism Act, Act No. 21 of 2002, consolidated as Cap. 19 R.E. 2023 and in force from 15 June 2003, with terrorist financing offences at sections 16 and 17 and proliferation financing at section 13, supplemented by the POTA Regulations 2022; Tanzania has no statute titled the Anti-Terrorism Act, and the Prevention of Terrorism Act mentions no virtual assets. Natural Persons: Collecting and verifying full legal name, date of birth, residential address, nationality, national identification number (e.g., National ID, passport, driver's license). Verification should be done using reliable, independent source documents, data, or information. Legal Entities (Companies, Partnerships, etc.): Collecting and verifying official name, registration number, address of registered office, names of directors/partners, legal form, proof of existence (e.g., certificate of incorporation). Beneficial Ownership: Identifying and verifying the identity of the ultimate beneficial owner(s) of the virtual assets or the entity, ensuring that the VASP knows who ultimately owns or controls the funds/assets. Purpose and Intended Nature of the Business Relationship: Understanding the purpose and intended nature of the customer's virtual asset activities and the business relationship. Ongoing Monitoring: Continuously monitoring the business relationship and transactions undertaken by the customer to ensure that they are consistent with the VASP's knowledge of the customer, their business, and risk profile. This includes monitoring for unusual or suspicious activities.
custody Tanzania has no crypto-custodian licence and no virtual-asset service provider authorisation of any kind: the Bank of Tanzania Act, Cap. 197 creates no such category, the Bank of Tanzania's published Regulations and Guidelines registers carry no virtual-asset instrument, and the Capital Markets and Securities Authority has issued no crypto circular, so a crypto custodian in Tanzania is unlicensed and unsupervised rather than caught by general financial-service rules. Future frameworks are expected to address licensing, potentially under the purview of the Bank of Tanzania (BOT) or the Capital Markets and Securities Authority (CMSA). Segregation of Client Assets Rules: Tanzanian law imposes no duty to segregate client digital assets from a custodian's proprietary assets: no Tanzanian virtual-asset instrument exists, the Bank of Tanzania's Regulations and Guidelines registers carry no digital-asset client-asset rule, and the Bank of Tanzania (Fintech Regulatory Sandbox) Regulations, 2024 (GN No. 540 of 5 July 2024) make no reference to virtual assets or to safekeeping of client assets. However, general principles of good financial governance and anti-money laundering (AML) practices, which are typically found in existing financial sector legislation, would strongly imply or require such segregation if an entity were to operate. Tanzania imposes no insurance, bonding or proof-of-reserves duty on crypto custodians: the Bank of Tanzania Act, Cap. 197 is silent on virtual assets and on custody of client assets, the Bank's published Regulations and Guidelines registers carry no virtual-asset instrument, and the Bank of Tanzania (Fintech Regulatory Sandbox) Regulations, 2024 create no custodian insurance or reserve obligation. This is a common feature in more developed crypto regulatory regimes, designed to protect client assets in case of breaches, hacks, or insolvency. Such requirements are likely to be considered in any future framework. No Tanzanian instrument mandates cold storage or any other technical custody standard for client digital assets: the Bank of Tanzania Act, Cap. 197 is silent on virtual assets, and the Bank of Tanzania's published Regulations and Guidelines registers contain no digital-asset custody or storage standard.
enforcement Regulator Name: Bank of Tanzania (BoT) Entity Targeted: The general public, financial institutions, and any individuals or entities attempting to deal in, facilitate, or operate businesses involving cryptocurrencies. Violation Type: Dealing in, facilitating, or promoting instruments not recognized as legal tender; operating unauthorized financial services. Penalty Amount: Not a specific fine amount applied in a single action, but the outcome implies potential prosecution under existing financial laws for unauthorized activities. Date: Ongoing, but significant reaffirmations and warnings were issued from mid-2021 onwards. Cryptocurrencies are not legal tender in Tanzania - section 26 of the Bank of Tanzania Act, Cap. 197 gives the Bank the sole right of issue and makes its notes and coins the only legal tender, and the Bank's notices of 12 and 29 November 2019 restate this - but no Tanzanian instrument prohibits financial institutions from facilitating crypto transactions, and the High Court held in Yellow Card Tanzania Limited v Nyamwero Michael Nyamwero, Commercial Case No. 12171 of 2024 (13 December 2024) that crypto trading is not illegal in Tanzania. Tanzania has taken no cryptocurrency enforcement action: the Bank of Tanzania's dated press-release index carries no crypto or virtual-asset item between the notices of 12 and 29 November 2019 and the central bank digital currency notice of 14 January 2023, and no fine, licence revocation or sanction against a virtual-asset entity appears on it through August 2026; no Tanzanian instrument bans financial institutions from dealing in crypto, and the November 2019 notices are public warnings that create no offence, licence or supervised perimeter. Bloomberg Africa: Tanzania’s Central Bank Maintains Crypto Ban While Studying Its Use (Dated June 18, 2021) Reuters (via The Citizen): Tanzania to look into cryptocurrencies after President's call (Dated June 16, 2021, detailing the President's comments and the BoT's subsequent clarification) Entity Targeted: Any entity attempting to establish a cryptocurrency exchange, brokerage, or related service within Tanzania. Violation Type: Operating an unauthorized financial institution; providing financial services without a license. Penalty Amount: Not applicable as there are no known licensed entities to fine. The consequence would be prevention of operation or legal action. Outcome: Due to the regulatory stance, no formal licenses have been issued for cryptocurrency businesses. This means any entity attempting to operate such a business would be considered illegal from the outset. This "enforcement" is preventative and structural, rather than reactive with specific penalties.
general UN Security Council Consolidated List: For individuals and entities designated under various UN sanctions regimes. OFAC Sanctions Lists: Primarily the SDN List, given the extraterritorial reach and potential USD nexus. EU Consolidated Financial Sanctions List: Relevant if there's any EU nexus. Domestic Lists: The Tanzanian FIU, in conjunction with the National Counter Terrorism Centre (NCTC) and other security agencies, would likely maintain or circulate a list of individuals and entities designated domestically under the Prevention of Terrorism Act for asset freezing. This list would primarily transpose UN designations. Customers (during onboarding and throughout the relationship) Senders and Receivers of funds/crypto assets UN-Sanctioned Countries: Countries subject to comprehensive UN sanctions (e.g., North Korea, Iran for certain aspects, etc.). OFAC-Sanctioned Countries: Countries subject to broad U.S. embargoes (e.g., Cuba, Iran, North Korea, Syria, certain regions of Ukraine).
licensing Tanzania has no virtual-asset licensing regime: as at 21 August 2026 there is no VASP licence class, no minimum-capital floor, no application process, no fee schedule, no register and no licensed firm. Tanzanian law does nevertheless define the terms — the Anti-Money Laundering (Amendment) Act, 2022 (Act No. 2 of 2022, assented 23 February 2022, in force 8 March 2022) inserted definitions of "virtual asset" and "virtual asset service provider" into section 3 of the Anti-Money Laundering Act, Cap. 423, without attaching any obligation to them. The Bank of Tanzania's public notices of 12 and 29 November 2019, issued under sections 26 and 27 of the Bank of Tanzania Act, 2006 (Act No. 4 of 2006, Cap. 197) and the Foreign Exchange Act, 1992, remain the operative central-bank position, and ESAAMLG rated Tanzania Partially Compliant with Recommendation 15 in its 1st Enhanced Follow-Up Report of September 2022. President Samia Suluhu Hassan's June 2021 remarks urging the Bank of Tanzania to prepare for cryptocurrency rest on wire reporting alone; no Bank of Tanzania or State House document records them, and BoT's own press-release index carries nothing on the subject. The Capital Markets and Securities Authority has published no crypto, virtual-asset or digital-asset notice, guidance or warning at any time, and its principal-legislation and press-release indexes carry none. The Bank of Tanzania's own account of where the work reached was given by Governor Emmanuel Tutuba on 30 July 2026: the Bank "completed the assessment and developed a concept on the regulation and supervision of virtual assets" which "has been submitted to the Ministry of Finance for further development" — a concept note held by the Ministry, not a bill and not a law. Current Stance (Implied): While formal prohibition may not be explicit in specific crypto legislation, the lack of a regulatory framework and the BOT's historical cautious stance on unregulated financial activities mean that operating an unlicensed crypto business could face significant legal uncertainty and potential challenges under existing general financial laws. Exchanges: If an exchange facilitates the exchange of fiat currency for cryptocurrencies, or vice versa, it might be seen as engaging in money transmission or payment processing activities. Custody Providers: If a provider holds significant assets on behalf of clients, it could potentially be viewed through the lens of trust services or asset management, which are typically regulated. The National Payment Systems Act, 2015 (Act No. 4 of 2015) licenses payment systems under section 7, payment instruments under section 17 and the issuance of electronic money under section 26, and its text contains no reference to virtual assets, cryptocurrency or digital currency. Its definition of electronic money requires "monetary value as represented by a claim on its issuer, that is electronically stored in an instrument or device, issued against receipt of funds of an amount not lesser in value than the monetary value issued" and redeemable in cash, which excludes virtual assets. A Bank of Tanzania payment-system, payment-instrument or electronic-money licence therefore reaches the fiat payment leg only and is not a virtual-asset licence, and the Bank of Tanzania has licensed no virtual-asset service provider under this or any other statute. Currently Undefined: Since there is no specific regime, the distinction between registration and licensing for virtual assets is currently moot. Future Outlook: If a regime were to be introduced, it would likely involve:
sanctions Tanzania implements United Nations Security Council targeted financial sanctions domestically through sections 12A, 14(5) and 54 of the Prevention of Terrorism Act, Cap. 19 R.E. 2023 (Act No. 21 of 2002) and the Prevention of Terrorism (General) Regulations 2022, GN No. 379 of 2022, regulations 4, 19, 20, 25 and 26; the Financial Intelligence Unit's Guidelines on Targeted Financial Sanctions revised November 2023 require screening against the Domestic List and the UNSCR List and freezing or blocking within twenty-four hours of designation, covering UNSCRs 1267, 1373, 1988, 1989, 2253, 1718 and 2231. Those duties bind only the 'reporting persons' enumerated in section 3 of the Anti-Money Laundering Act, Cap. 423, a class that excludes virtual asset service providers, and no United Nations sanctions regime targets Tanzania itself. Obligations: Financial institutions (and by extension, any entity deemed a "reporting person" under Tanzanian AML law, which could include VASPs if they were formally regulated) must: Screen against the UN Consolidated List: Check customers, beneficial owners, and transaction parties against the UN Security Council Consolidated List, which identifies individuals and entities subject to asset freezes, travel bans, and arms embargoes. Freeze Assets: Immediately freeze funds or other economic resources of designated individuals and entities. Prohibit Transactions: Refrain from making funds or economic resources available, directly or indirectly, to or for the benefit of designated individuals and entities. Report: Report any hits or frozen assets to the relevant authorities (e.g., Financial Intelligence Unit - FIU). Relevance to Crypto: If crypto assets are recognized as "funds" or "economic resources" under Tanzanian law, these obligations would directly apply to VASPs. Even if not explicitly recognized, best practice dictates treating them as such to avoid facilitating sanctioned activity. UN Security Council Sanctions Committees: https://www.un.org/securitycouncil/sanctions/committees
securities Tanzania does not have a specific legal framework for cryptocurrency or digital asset securities as of 2025–2026; no dedicated crypto-asset law, licensing regime, or regulatory guidance has been enacted Laws and Regulations Governing Investments in Tanzania No entity has been licensed to operate a cryptocurrency exchange, digital asset securities platform, or crypto-related investment scheme in Tanzania; the CMSA has not issued any crypto-specific licenses Home |Capital Market and Securities Authority The practical reality is that crypto businesses operate in a legal gray zone, facing uncertainty about whether their activities fall under existing securities, banking, or foreign exchange laws, and no clear application path exists for digital asset firms Laws and Regulations Governing Investments in Tanzania While the regulatory framework for traditional securities is established, no dedicated policy, circular, or directive from CMSA, the Bank of Tanzania (BOT), or the Ministry of Finance addresses cryptocurrency or digital asset securities Home |Capital Market and Securities Authority The Constitution of the United Republic of Tanzania, 1977 is the supreme law, recognizing the right of individuals to acquire and own property, which forms the constitutional backdrop for any asset-related regulation Laws and Regulations Governing Investments in Tanzania The Capital Markets and Securities Act, 1994 (No. 5 of 1994) establishes the Capital Markets and Securities Authority (CMSA) for the purpose of promoting and facilitating the development of capital markets and securities in Tanzania Laws and Regulations Governing Investments in Tanzania The CMSA operates under the Capital Markets and Securities Act, Chapter 79 R.E. 2002, which is the primary legislation governing securities in Tanzania Home |Capital Market and Securities Authority The CMSA is the statutory regulator responsible for overseeing capital markets, including securities issuance, trading, and market intermediaries, with its CEO being CPA Nicodemus D. Mkama Home |Capital Market and Securities Authority
stablecoin Tanzania has enacted no stablecoin instrument and no statutory definition of a stablecoin: the Bank of Tanzania's regulations register lists 51 instruments and its guidelines register 50, none of them addressing virtual assets, and of 286 Bank of Tanzania public notices only three concern crypto-assets, being the cryptocurrency notices of 12 and 29 November 2019 and the central bank digital currency progress notice of 14 January 2023. The National Payment Systems Act, 2015 (Act No. 4 of 2015) defines electronic money as monetary value represented by a claim on its issuer, electronically stored, issued against receipt of funds of an amount not lesser in value than the monetary value issued, accepted by persons other than the issuer and redeemable in cash, a definition that excludes a virtual asset, and the Act carries no occurrence of virtual, crypto, digital asset or virtual asset; Tanzania's payment instruments are the Payment Systems (Licensing and Approval) Regulations, 2015 and the Electronic Money Regulations, 2015, and no Payment Systems Regulations of 2021 exist. The Capital Markets and Securities Act, Chapter 79 (Act No. 5 of 1994) is Tanzania's securities statute, and its text carries no occurrence of virtual, crypto, digital asset or token; the Capital Markets and Securities Authority has published no crypto-asset or stablecoin position in any of its principal legislation, guidelines, rules, circulars or regulations indexes. No Tanzanian instrument imposes reserve requirements on stablecoin issuers: the Bank of Tanzania's regulations register lists 51 instruments and none addresses virtual assets, and reserve and safeguarding duties in Tanzanian payment law attach only to electronic money issuers licensed under the National Payment Systems Act, 2015. Potential (If classified as E-money): If a stablecoin were classified as e-money, it would likely be subject to the prudential requirements for e-money issuers under the Payment Systems Regulations, 2021. These typically include: Maintaining reserves equivalent to the value of e-money issued. Safeguarding customer funds (e.g., segregating funds, holding them in low-risk assets). Capital adequacy requirements for the issuer.
status Cryptocurrency is not explicitly legalized or prohibited in Tanzania, but the Bank of Tanzania (BoT) has issued public warnings against the use of virtual assets and maintains that the Tanzanian shilling is the only legal tender, with no license or registration regime currently operational for crypto businesses. Tanzania - Customs Regulations The Bank of Tanzania is the primary financial regulator with authority over payment systems and digital financial services, but it has not established a licensing framework for cryptocurrency exchanges, custodians, or wallet providers as of the 2025–2026 period. Clinical Research Regulation For Tanzania - ClinRegs - NIH No cryptocurrency exchange or digital asset service provider has been granted a license or authorization to operate in Tanzania, and the BoT has repeatedly cautioned financial institutions against facilitating crypto transactions. Tanzania - Customs Regulations The practical reality is that crypto activity exists in a legal gray zone, with the central bank warning of risks while no explicit law criminalizes private possession or trading, but no compliant business pathway exists for exchanges or intermediaries. Clinical Research Regulation For Tanzania - ClinRegs - NIH The government has not introduced dedicated digital asset legislation or issued tax guidance, leaving businesses and individuals operating in the space without clear legal protection or regulatory certainty. Tanzania - Customs Regulations The Bank of Tanzania (BoT) is the central bank and the principal financial regulatory authority in Tanzania, responsible for monetary policy, payment systems, and financial stability, and it has issued public statements warning against the use of cryptocurrencies, citing risks such as money laundering, terrorism financing, and consumer protection concerns. Tanzania - Customs Regulations The BoT has publicly stated that the Tanzanian shilling (TZS) is the only legal tender in the country and that virtual currencies are not recognized as legal tender, effectively blocking banks and financial institutions from engaging in cryptocurrency transactions. Clinical Research Regulation For Tanzania - ClinRegs - NIH The primary legislation governing financial services and payment systems in Tanzania includes the Bank of Tanzania Act, the National Payment Systems Act, and the Anti-Money Laundering Act, none of which contain specific provisions for the regulation of virtual assets or cryptocurrency service providers. Tanzania - Customs Regulations
travel rule Is crypto legal here? Cryptocurrency and digital assets are not explicitly prohibited in Tanzania, but they are not formally regulated under a dedicated statute. The legal status remains ambiguous, with the Financial Services Regulatory Authority (FSRA) overseeing financial institutions that may indirectly touch digital assets (e.g., through payment service providers). Who regulates? The primary regulator for financial services, including those that may involve digital assets, is the Financial Services Regulatory Authority (FSRA), established under the Financial Services Regulatory Authority Act No. 13 of 2015. The Commissioner General of Immigration handles entry‑related documentation, but no specific crypto travel‑rule framework exists. Can you get a license? No specific license for cryptocurrency exchanges or digital asset service providers exists. Entities offering such services operate under existing financial licensing regimes (e.g., money‑transfer operators, payment service providers) if they fall within FSRA’s scope. As of 2025‑2026, no entities have been formally licensed exclusively for crypto activities. Has anyone? No cryptocurrency exchanges or digital asset service providers have received a dedicated license from FSRA. Some fintech firms offering blockchain‑based payment solutions may operate under broader payment service licenses, but these are not crypto‑specific. Practical reality: The regulatory landscape is largely silent on crypto travel rules. Foreign visitors using crypto to transfer funds into Tanzania must comply with general AML/KYC obligations under FSRA and immigration requirements, but there is no targeted travel‑rule mandate for cryptocurrency transactions. Commissioner General of Immigration – handles entry documentation. Financial Services Regulatory Authority Act No. 13 of 2015 – establishes FSRA’s mandate to regulate financial institutions, including banks, insurance companies, and payment service providers. Anti-Money Laundering and Counter-Terrorism Financing Act (AML/CTF) No. 6 of 2019 – imposes AML/KYC obligations on designated financial institutions.

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-09. View full profile