On Wednesday, November 21, 2018, the Bank of Tanzania (BoT) announced a suspension of new forex bureau licences as it stepped up enforcement against illegal operators and suspected money laundering.
BoT governor Florens Luoga said all pending applications had been put on hold and no fresh requests would be accepted until new rules and regulations were introduced. He said the regulator was moving against traders who had obtained permits illegally and those found to have breached the law.
“They will all receive a notice of revocation of licences and their shops will be closed,” he said.
Luoga said a six-month investigation had uncovered a growing number of illegal forex traders involved in money laundering. He added that the central bank’s earlier efforts to stop the practice had failed because of what he described as a “wide syndicate that prevented enforcement of the regulations.”
The crackdown followed a coordinated sweep in Arusha on Monday, which the governor said was carried out after consultations with several investigation organs. He said the aim was to inspect both registered bureaux de change and black market operators at the same time.
At about 12 noon, Tanzanian military officers cordoned off forex bureaus in the northern tourist hub while BoT officials raided the outlets. Customers and business people were left unable to access the shops, which remained closed under guard by unarmed army officers.
Luoga said the military had been deployed because most police officers were assigned to guard centres during the ongoing Form Two national examinations.
He said traders found to have violated the law would be arrested and taken to court.
