Dissertation Submitted to Mzumbe University, Dar es Salaam Campus as a
Partial Fulfillment of the Requirements for the Award of the Degree of Master
of Science Accounting & Finance (A&F) of Mzumbe University
The study sought to assess constraints facing banking Industry Initiatives in
controlling money laundering a case of NMB. The objectives of the study included:
the effectiveness of the law governing money laundering combating, constraints in
combating money laundering problem, strategies employed in curbing money
laundering problem and solutions to money laundering problem in Tanzania. The
study utilized both qualitative and quantitative approaches and a sample size of 353
respondents involving NMB officers. Data were collected through documentary
review, interviews and questionnaires and were analysed qualitatively and
quantitatively. Qualitative data were subjected to content analysis, while quantitative
data were extracted, classified and computed using Excel into frequencies and
percentages, and presented in tables and charts.
Findings of the study revealed that NMB workers were aware with existence of
money laundering problem in Tanzania. The findings also revealed that the reforms
brought changes on money laundering which had also an impact on decline the
money laundering reported cases. The implementation of money laundering policy
reform components enhanced the efficient and effective curbing money laundering
problem. The study findings revealed that level of which money laundering strategies
control the problem is between 25-45 which is equivalent to 44%. The findings also
indicate that 34% of the respondents said that lack of experts affects the effective of
banks in controlling money laundering problem compared to 26% who said weak
strategy making forum for banks and 12% attributed the problem to the lack of
technology and only 18% said corruption. These findings indicate that in order for
the money laundering strategies to be effective, NMB need to have enough experts
on money laundering behavior as well as enough modern technology. Based on the
research findings, the study concludes that commercial banks are urged to develop
programs against money laundering that minimally would see the development of
policies and procedures and the involvement of management in the process. Ongoing
employee, training programs and audit checks of the system are also recommended.
The study recommends that money laundering curbing strategies should not begin
and end when client enters the bank. Banks has to develop personal relationships