DAR ES SALAAM – June 17, 2025 – Tanzania has officially been removed from the Financial Action Task Force (FATF) “grey list,” a significant milestone that is expected to bolster investor confidence and enhance the nation’s standing in the global financial community. The global anti-money laundering and counter-terrorism financing watchdog announced its decision following its plenary session held in Strasbourg, France, from June 10 to 13, 2025.
The FATF, an intergovernmental body that sets international standards to prevent money laundering, terrorist financing, and proliferation financing, had placed Tanzania on its list of jurisdictions under increased monitoring in October 2022. This was due to identified strategic deficiencies in the country’s framework for addressing financial crimes.
Since then, Tanzanian authorities have undertaken comprehensive regulatory and institutional reforms to align with global standards in financial transparency and crime prevention. These efforts included improving coordination between regulatory and enforcement bodies, enhancing financial sector oversight, and enacting legal amendments to strengthen anti-money laundering and counter-terrorism financing frameworks.
Sauda Msemo, Deputy Governor at the Bank of Tanzania and chairperson of the national committee of anti-money laundering experts, confirmed the delisting, highlighting the country’s commitment to maintaining robust oversight of its financial sector. Finance Minister Dr. Mwigulu Nchemba welcomed the news, reaffirming President Samia Suluhu Hassan’s full commitment to safeguarding Tanzania against financial crimes.
The removal from the grey list is anticipated to have several positive impacts on Tanzania. It is expected to:
- Boost investor confidence: Lowering the perceived risk of doing business in Tanzania.
- Reduce compliance burdens: Easing requirements for financial institutions engaging with the country.
- Improve access to international financial systems: Making cross-border transactions smoother and potentially less costly.
- Enhance global reputation: Positioning Tanzania as a trustworthy and secure environment for investment.
Tanzania’s successful reform trajectory could also serve as a model for other East African nations currently undergoing their own FATF reviews or seeking to exit similar listings. The government has pledged to not only sustain its current gains but also deepen collaboration with local and international partners in combating illicit financial flows, aiming to solidify its position as a regional leader in financial transparency and integrity.
