TANZANIA has been removed from the Group of Seven ‘grey list’ of the Financial Action Task Force (FATF) following significant reforms intended to combat money laundering, terrorist financing and threats of the “proliferation of weapons of mass destruction.”

Sauda Msemo, deputy governor at the Bank of Tanzania and chairperson of the national committee of anti-money laundering experts confirmed this move in a statement at the end of the FATF plenary session in the French city of Strasbourg, which hosts the task force secretariat.

At the June 10 to 13 meeting the BoT official was accompanied by Majaba Magana, commissioner for the Financial Intelligence Unit (FIU) within the Treasury, who reaffirmed the government’s commitment to maintaining robust oversight of the financial sector.

An online entry says FATF was formed at the 1989 Group of Seven summit in Paris to combat the growing problem of money laundering. The task force was charged with studying money laundering trends, monitoring legislative, financial and law enforcement activities taken at the national and international level.

It reports on compliance and issuing recommendations and standards to combat money laundering  having 16 members at the time of its formation, and by 2023 had grown to 40 members.

In its first year, FATF issued a report containing 40 recommendations to more effectively fight money laundering, standards that were revised in 2003 to reflect evolving patterns and techniques in money laundering, the note indicated.

The move is seen as a milestone for Tanzania’s financial governance, with the decision being aired by FATF president Elisa de Anda Madrazo at the close of the 2025 plenary session. 

“The decision marks a turning point for Tanzania, which was placed on the list in October 2022 due to identified strategic deficiencies in its financial oversight mechanisms,” the BoT official noted

Removal from the grey list follows a series of comprehensive regulatory and institutional reforms aimed at aligning the country with global standards in financial transparency and crime prevention, she stated.

She reaffirmed the government’s intention to promote international cooperation and uphold transparency, accountability and good governance across all financial networking spheres as they are critical to strengthening national and global financial security, she said at the gathering.

Dr. Mwigulu Nchemba, the Finance minister, welcomed the news, expressing satisfaction with the FATF secretariat, the Africa Group subcommittee and the Eastern and Southern Africa anti-money laundering group for their collaborative support, acknowledging the technical and financial assistance from the development partners to facilitate the reform process.

“We wish to assure both the public and the international community that President Samia Suluhu Hassan is fully committed to safeguarding Tanzania against financial crimes,” he stated.

The government would not only sustain its current gains but also deepen collaboration with local and international partners in combating illicit financial flows, he said. 

These efforts are critical to positioning Tanzania as a regional leader in financial transparency, integrity and sustainable economic development, he said, insisting that Tanzania now stands as a trustworthy jurisdiction, offering a secure and enabling environment for investment.

 “We call on international investors and financial institutions to seize opportunities our country presents for economic and financial partnerships,” he urged.

Tanzania’s delisting from the FATF Grey List is expected to bolster investor confidence, lower compliance burdens for financial institutions and enhance the country's standing in the global financial community, he added.