Tanzania - Threat Assessment - 2020 Page 1 of 9 Slavery: US Trafficking in Persons: Tier 2 Tanzania � Country (Watchlist) According to the 2018 Global Slavery Index, Tanzania has 336,000 1. Executive Summary modern day slaves )incidence of 6.2/1000 people) & the country is rated CCC (limited Grey Lists : Tanzania is listed by the US as a response to modern slavery). Country of Primary Concern in respect of ML & FC, but is not listed by FATF, or the EU on their Sanctions & Terrorism: No Sanctions against “Grey” lists. the Country. For Proliferation Tier 2 PPI Index (Proliferation) Tanzania is given a “Moderate” NRA - Published in 2016. Overall ML risk at response score 423/1300. Global Terror Index “Medium High”. The Report found rated “Low”. Terrorism ratings from GTI give domestically, “money laundering comes from Tanzania a “Low” impact (Score 2.834/10). corruption, tax evasion, drugs trafficking, poaching and smuggling of goods,” and Indices: Freedom House 2019 Freedom in the foreign threat for money laundering comes World score of 45/100, “partly free.” and rated from “unlawful dealing in Government trophy “increasing improvement" 58.5/100 in Mo (wildlife parts and products), drugs trafficking Ibrahim Index of African Governance. Basel and smuggling of goods.” AML Index 2019 - ranked 17th worst of 125 countries, with a score of 6.63/10. Corruption: TI CPI - 2018 - ranked 96/180 with a score of 37/100 in 2019. The World Bank in Resilience & Response: Tanzania is currently its Governance Indicator - Corruption Control under review by the ESAAMLG and is due to rated Tanzania 39/100. The 2018 TRACE report in 2020. Removed from FATF Watchlist Bribery Risk Matrix - “High” risk rating of 60, in 2014. OC Index scores Tanzania Low for ranked 139/200. Resilience at 4.13/10 ranked 22/54 for Africa and 4/9 for E Africa.. Organised Crime Index: High Criminality ranked 17/54 of African countries and 6/9 of Overall Ratings: Tanzania is rated overall East African countries. The main markets, “High” Risk, 5th highest risk out of 10 Eastern according to the OCI, with highest criminality African Countries and 28th highest risk out of scores (rated 1-10 with 10 the highest) were 40 in FCN’s SSA Threat Assessment with a illegal drugs, with Cannabis (8/10) and Heroin score of 34/100, but with an “Improving” tend. (7.5/10) the most significant, followed by Environmental Crimes, Illegal Wildlife and Illegal Logging (7/10) and Illegal Mining (6/10), FCN Rating: “High” Risk 34/100 at the same level as Human Trafficking (6/10) Trend “Improving” and Human Smuggling (6).

Tanzania - Threat Assessment - 2020 Page 2 of 9 Tanzania - Threat Assessment - 2020 Page 3 of 9 2. Country Information

People & Geography: Tanzania is home to 55 from India 16.5%, China 15.8%, UAE 9.2%, million people in an East African country Saudi Arabia 7.9%, South Africa 5.1%, Japan known for its vast wilderness areas. They 4.9% & Switzerland 4.4%. include the world famous Serengeti National Park and the Ngorrogorro Crater, popular for Environment: According to the Environmental safari populated by the “big five” game Performance Index 2018, Tanzania scores (elephant, lion, leopard, buffalo, rhino), and 50.83/100 & is ranked 119/180 countries. Kilimanjaro National Park, home to Africa’s Indoor air pollution caused by the burning of highest mountain. fuel wood or charcoal is a large environmental health issue as is deforestation. Recent History & Leadership: Shortly after achieving independence from the UK in the Tourism:Travel and Tourism in Tanzania early 1960s, Tanganyika and Zanzibar merged generated US$6.6 billion in 2019 employing to form Tanzania (the name "Tanzania" derives 1.55 million Tanzanians (11%) and from the names of the two states, Tanganyika representing 10.7% of Tanzanian GDP. Main and Zanzibar) in 1964. In 1995, the country attractions include wildlife tourism, with held its first democratic elections since the numerous national parks, including the 1970s. Zanzibar maintains semi-autonomy and Serengeti. Domestic spending on tourism and participates in national elections. President travel stood at 16% while international John Magufuli has been in office since 2015, spending was 84%. Main tourists come in from following his election win. Kenya (15%), US (7%), UK (5%), Germany (5%) & Burundi (4%), with outbound tourists going Economy & Trade: Tanzania has a GDP of to; Zambia (35%), Uganda (15%), Kenya (11%), US$58 billion (2018), representing 3.6% of SSA Zimbabwe (6%) & South Africa (6%). GDP. Tanzania’s economy relies heavily on its mining and agricultural sectors. Agriculture Finance: Tanzania’s financial profile includes represents approx 23%, industry 29% & the following (people aged over 15); 21% have services 48% (2017). Exports of US$4.971 Bank account’s, 0.5% have a credit card, 39% billion (2017), gold, coffee, cashew nuts, have a mobile money account, 12% make manufactures, cotton to India 21.8%, South online payments, Internet penetration is at Africa 17.9%, Kenya 8.8%, Switzerland 6.7%, 25% via 15 million internet users 44 million Belgium 5.9%, DRC 5.8% & China 4.8%. mobile connections or 75%. Foreign Imports of US$7.869 billion (2017), consumer remittances received of 0.8% of GDP & costs goods, machinery and transportation of outbound remittances from Tanzania are equipment, industrial raw materials, crude oil 15.9% of US$200. Tanzania - Threat Assessment - 2020 Page 4 of 9 3. Country Ratings

Available information from leading sources produce almost 60 ratings for Tanzania, covering both threats and responses in fighting financial crime, sanctions, proliferation finance and terrorism & terrorism finance.

Source Tanzania � Source Tanzania � Source Tanzania �

World Economic Forum 63.9 / 100 Transparency International (TI) 37 / 100 Proliferation Index - PPI Tier 2 Organised Crime Index* Corruption Perceptions Index* a score below 50 is more corrupt Threat Middle Threat Level

OC Index “High” Criminality TI & Afrobarometer 25% Proliferation Index - PPI 423/ 1300 Criminality* 5.63 Citizens Views and Experiences of Corruption Controls* Controls score Report

OC Index 5/10 TRACE 72/100 Global Terrorism Index “Low” Impact Criminal Actors Bribery Risk Matrix GTI - Impact* 2.834

OC Index 5.5/10 Global Slavery Index 6.2/1,000 US Dept of State No State Embedded Actors GSI Incidence* Incidence of human trafficking Country Reports on Terrorism*

OC Index 6/10 Global Slavery Index 336,000 Global Cybersecurity Index 0.317/1 Criminal Networks No of estimated Modern Day Slaves numbers of modern slaves 2018 (88/175)

OC Index 5.5/10 Global Slavery Index “CCC” Rating Mo Ibrahim Governance Index 58.5/100 Foreign Actors Country Response Rating* (49.9 - All Africa)* “Increasing Improvement”

OC Index 3/10 US Dept of Labor 3.6 million children work Freedom House 45/100 Mafia Style Gangs Child Labour Freedom Index* “partly free” 29.3%

OC Index Cannabis 8/10, Heroin 7.5/10 US Dept of State Tier 2 (Watchlist) Rated Heritage Foundation 60.2/100 Drugs Trafficking Synthetic’s 5/10, Cocaine 4.5/10 Trafficking in Persons* Economic Freedom Index “moderately free” and 94 out of 180.

OC Index 5.5/10 IOM Migration 509,000 I / 323,000 E Basel AML Index* 6.63/10 Arms Trafficking E - Emigration / I - Immigration 17/125 Countries

OC Index 6/10 Illegal Unreported and Unregulated 2,65/6 FIU Egmont Yes People Smuggling (IUU) - IUU Fishing Index Member

OC Index 6/10 EU Listing of Countries for Illegal No Interpol Yes Human Trafficking Fishing Member

OC Index 7/10 US DoS - Wildlife Trafficking Yes Asset Confiscations Estimated below 1% Illegal Timber Focus / Countries of Concern* Focus Country over 1% of Proceeds*

OC Index 7/10 Environment Performance Index 50.83/100 Country National Risk Assessment* 2016 Illegal Wildlife Published 119/180

OC Index 6/10 EUIPO & OECD Counterfeit Goods 0.08% Financial Information Sharing No Illegal Mining Propensity of Exports Partnership

OC Index 4.13 Tax Justice Network 71 US Dept of State Listed Under Vol 2 Resilience* Financial Secrecy Index (98/133) INCSR Vol I & Vol II* Financial Crimes - Primary Concern

OC Index 5.5/10 EU List of None Co operative Not Included European Union List* No AML Jurisdictions for Tax purposes

OC Index 5/10 Not Yet Reviewed FATF Standards Report in 2020 OECD - Global Forum Law Enforcement on Transparency & Exchange Info for Tax Purposes 40 Recommendations*

OC Index 4/10 Global Financial Integrity US$321 million 2017 - 18.21% FATF Standards Report in 2020 International Co- operation Illicit Financial Flows* 11 IO’s on Effectiveness*

OC Index 4.5/10 Embassy’s from N Korea, Syria, Iran Cuba, North Korea, Iran & Syria FATF Standards Report in 2020 Economic Regulatory Environment or Cuba Core 10 Recommendations

Illegal Drug Dependency / Disorders 247,000 / 0.52% Embargoes - Country Sanctions None FATF Standards Report in 2020 Number/Share (Comprehensive - UN, US, EU, UK) Core 4 IO’s on Effectiveness

Numbeo Crime Survey 2020 58.9/100 OFAC Listed Parties 4 Entries FATF No (25/129) with Local Addresses Counter - Measures (Strategic Deficiencies) Strategic Deficiencies List*

Tanzania - Threat Assessment - 2020 Page 5 of 9 4. Financial Crime News (FCN) Country Ratings

From all the available information collected and results summarised in Section 3 above, 20 plus ratings have been selected, covering a broad base of threats and responses in fighting financial crime, sanctions, proliferation finance and terrorism & terrorism finance. The Results make up the FCN Country Threat / Response & Overall Risk scores and rankings for Countries in Sub Saharan Africa

FCN SSA Country Risk Rating - Threats by FCN - Tanzania � FCN SSA Country Risk Rating - Response - Tanzania �

GTI GSI INCSR TI CPI US TIP Overall Gov Free GSI OCI PPI NRA WEF OC US Terror GFI IFF’s Basel IUUF Index OC Index FATF 40 FATF 11 Overall US END Wildlife Seizures US$ FATF/EU Lists

FCN Final Ratings - Tanzania �

Financial Crime News 23/100 Financial Crime News 34/100 “High” Risk Threat Rating Financial Crime Rating “Very High” Threat 28/40 SSA - 5/10 EA

Financial Crime News 44/100 Trend Improving Trend Response Rating “Moderate” Response (TI CPI, Mo Ibrahim, FATF, Basel Index & GTI - 3-5 years)

For more details on the scoring model for FCN Ratings contact the Editor FCN directly for access to the Methodology

Ratings across Sub Saharan Africa, compared to other Countries

Tanzania - Threat Assessment - 2020 Page 6 of 9 Tanzania - Threat Assessment - 2020 Page 7 of 9 5. Selected Information

From the available information, a number of indicators can be tracked over time to identify trends. A number of these indicators are identified below together with additional charts used in the Long Form “Deep Dive” Country Threat Assessment for Tanzania on request from Financial Crime News/ Premium.

The Authors of this work is John Cusack. Data Investigation & Information collection by Hannah Cusack. Thanks to: Hans Peter Bauer, Alois Maluvu, Ursula M’Crystal, Victoria Meyer, Bruce Viney & Andrew Williams. The Editor is John Cusack, the publisher is Financial Crime News / Metriqa Limited. All rights remain with FCN/Metriqa Limited.

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