777. The CSAR notes that Zanzibar is yet to pass its anti-corruption law although preliminary steps have been taken in this regard. The CSAR further observes that no case of grand corruption was brought before the courts in Zanzibar in recent years. Money laundering and financial crimes 778. The CSAR notes that financial crimes are closely linked with money laundering. It also observes that the full extent of money laundering is not easily established because, (a) associated transactions are shrouded in secrecy; and, (b), law enforcement agents lack knowledge and detection skills. 779. The CSAR reveals that steps to address money laundering and financial crimes include the enactment of the 2006 Anti-Money Laundering Act, which came into force in 2007, and boosting incentives to civil servants. Collaboration between Tanzania’s Criminal Investigation Department and financial institutions have been ongoing since 2001. Public and private sector cooperation needs to be a sustained activity. For example, all banks are required to report suspicious transactions - such as large deposits immediately followed by withdrawals - while transactions above prescribed ceilings must be transferred through the interbank system. 780. The CSAR states that Zanzibar has no specific anti-money laundering law. However, the provisions of its 2004 Penal Law, Act no 6 are similar to the Anti-Money Laundering Act of 2007. Other laws enacted to deal with money laundering in Tanzania include the Prevention of Terrorism Act (money laundering is also associated with terrorism); the Proceeds of Crime Act, Cap 256; the Economic and Organised Crime Control Act Cap 200; the 2006 Banking and Financial Institutions Act; and, the Mutual Assistance in Criminal Matters Act, Cap. 250. 781. The National Multi-disciplinary Committee on Anti-Money Laundering and the Financial Intelligence Unit were established under the Anti-Money laundering Act. Charged with the responsibility of receiving, analysing and disseminating suspicious transaction reports, and other information regarding potential money laundering or terrorist financing received from reporting Institutions, the Financial Intelligence Unit also processes such informaton from other sources both within and outside of Tanzania. Alongside legislation, there has also been capacity building to facilitate effective investigation and detection. Effectiveness of regulatory oversight including Supervision by professional Associations 782. According to the CSAR, State Owned Enterprises (SOEs) are governed by the 1992 Public Corporations Act. In addition, SOEs, such as the Tanzania Communication Company (TTCL) and TANESCO (the Utility Company) - also fully established under specific laws - are governed by their enabling laws. Ministries under which SOEs are placed also have supervisory powers over them. Board members are appointed by the supervising minister who also makes recommendations to the President on CEO and board Chair appointments, The CSAR observes that this SOE system of governance is a challenge to effective governance. Effective banking supervision 783. The CSAR notes that Tanzania signed and adopted the Basle I & II Principles of Effective Banking Supervision. The Bank of Tanzania (BOT) regulates financial reporting by banks and non-banking financial institutions, as provided for by the 2006 Banking and Financial Institutions Act and Banking Supervision Regulations. 784. Tanzania also signed the International Accounting Standards (IAS) and the International Standards on Auditing (ISA). The country has also developed Tanzania Financial Accounting Standards (TAS). Financial reporting by banks and non-banking financial institutions is in line with international best practice, requiring the submission of financial statements according to the prescribed format. Tanzania adopted International Financial Reporting Standards (IFRS) for the Private Sector and IPSAS for the Public Sector. The National Board of Accountants and Auditors (NBAA) is mandated to ensure conformity and compliance with these standards. The CSAR notes that although these principles are being implemented, enforcement remains a major challenge across the board. 160