A Dissertation Submitted in Partial Fulfillment of the Requirements for Award of the Degree of Master of Business Administration (MBA) of Mzumbe University. 2018The focus of the study was to assess factors hindering detection and prevention of money laundering activities. The study was conducted at the National Bank of Commerce (NBC). The objectives of the study were: to identify bank procedures available that hinder detection and prevention of money laundering activities, to examine the influence of management support in detection and prevention of money laundering activities and to determine the extent of the compliance with the Money Laundering Act. A sample of 92 respondents was used. Primary data were collected by using questionnaires and in-depth interview whereas secondary data were collected by using documentary analysis. Data were presented by using Tables and Figures. Microsoft excel was used to analyze the collected data. The study found that there are factors hindering detection and prevention of money laundering activities. These involves, bank procedures, lack of information and lack of technology. Also, the study found that, there are various procedures that hinder detection and prevention of money laundering activities in bank. These include small bank deposits, and regular, consistent bank deposits. The study concludes that there are various procedures that hinder detection and prevention of money laundering activities in bank. The study recommends that bank should provide proper anti-money laundering training to their staff. This will improve extent of the compliance with the Money Laundering Act