A Research Report Submitted in Partial Fulfillment of the Requirements for the Award of the Degree of Bachelor of Accounting and Finance in Business Sector (BAF-BS) of Mzumbe University.The study was conducted to find out the challenges which banks and financial institutions face to combat money laundering. The study was conducted at Dar es salaam at CRDB Bank Plc Msasani branch. The purpose will be to evaluate the effects of money laundering in bank services and profits throughout the year, Secondly, to examine the relationship between Anti Money Laundering (AML) and the banks management on how to eliminate or combating money laundering. Thirdly, to examine how government policies, contribute in combating money laundering. A sample of 50 respondents from the organization was subjects of this study. They was picked randomly from customer care department, business banking department and main administration department. Case study method of research was used. Data was gathered through unstructured questionnaires, which was reinforced by personal interview, actual observation, and documentations. The data collected, was processed and presented in percentage basis and graphs. Once the study is accomplished the researcher believes that it will be so much value to a number of people. Also since research design is applied as a case study, the result will be of benefit to the named organization well as other organizations of the same nature. Finally, the researcher recommends the organization to continue to making improvement on the money laundering policies to insure effectiveness. By doing so it will help the goodwill of the organization as well as profits in present and future time.