THE TANZANIAN GOVERNMENT Said
On Tuesday That It Was Compelled To Close Forex Shops Towards The End Of 2018
And Early 2019 After Realizing Several Shortfalls In The Way They [The Shops]
Conducted Their Businesses.
Deputy Minister For Finance,
Mr Hamad Chande Said In The Parliament That During That Period, When Tanzania Was
Under President John Magufuli, Some Forex Shops Were Closed Due To A Number Of
Shortfalls In Their Operations.
During That Time,
Officials From The Bank Of Tanzania (Bot) And The Tanzania Revenue Authority (TRA)
Conducted Raids On Privately-Owned Bureaux De Changes In Dar Es Salaam,
Resulting In The Closure Of Numerous Shops.
A Similar Exercise Had
Previously Occurred In Arusha, Where Suspicious Outlets Were Sealed Off
Following A Joint Operation Involving Bot And The Military.
But Responding To
Legislator’s Questions On The Matter During The First Day Of The 2024/25 Budget
Sessions Of Parliament On Tuesday, April 2, 2024, Mr Chande Said The Closure
Followed A Special Audit Conducted By The Government Which Revealed Several
Shortcomings In Their Operations.
These Deficiencies
Included Involvement In Money Laundering Activities, Conducting Currency
Exchange Without Proper Documentation, And Failure To Issue Receipts For
Transactions.
Moreover, The Shops Were
Found To Be Non-Compliant In Providing Accurate Transaction Reports To The Bot,
Thereby Hindering The Availability Of Essential Economic Data.
“Some Shops Were Also
Discovered To Be Transferring Money Abroad Without The Necessary Licenses Or
Authorizations From The Bot,” Mr Chande Said, Responding To Inquiries From Mr
Ussi Salum Pondeza (Chumbuni - CCM), Mr Chande.
In His Key Question, Mr
Pondeza Wanted To Know Why The Government Decided To Close The Forex Shops,
Leaving Several Tanzanians Jobless.
But In His Response, Mr
Chande Said While A Total Of 68 Forex Shops Were Initially Closed, The Majority
Have Since Rectified Their Shortcomings And Regained Their Licenses.
He Reassured That Only
Seven Shops Remain Closed As Of Now, With Plans For Their Reopening In The Near
Future.
Expanding On The Matter, Finance
Minister Dr Mwigulu Nchemba Emphasized That The Government's Intent Was Not To
Harm Investors.
He Clarified That Among
The Assets Seized During The Closure, Unpaid Taxes Were Deducted, And The
Remaining Funds Were Returned To The Shop Owners.
The Government's Actions,
He Said, Underscore Its Commitment To Ensuring Compliance Within The Financial
Sector While Facilitating A Conducive Environment For Business Operations In Tanzania.