The Role of Tanzania’s Legal Profession in Tanzania in Tackling Illicit Financial Flows
- International Lawyers Project
- 1 day ago
- 4 min read
By Mary Ongore, Legal Manager, Sustainable Finance; and Carter Cheng, Legal Fellow
Across Africa, illicit financial flows (IFFs) have been draining billions of dollars from countries that need resources to provide public services, to drive economic development and to invest in growth. Like many Global South countries, Tanzania faces significant challenges in curbing these illicit flows.
Recognising lawyers’ indispensable role in fighting IFF-related crimes and upholding the rule of law, International Lawyers Project (ILP) and Akin Gump recently organised a virtual capacity-building session to enhance the capacity of members of the Tanzania Public Bar Association (TPBA) by equipping them with the tools available to address IFFs in Tanzania. This blog highlights the outcomes of the training session.
IFFs and the Challenges they Pose for Africa
Although IFFs are a global problem, Africa bears a disproportionate burden. According to the United Nations Conference on Trade and Development, the continent loses an estimated $88.6 billion annually (equivalent to 3.7% of Africa’s GDP) due to IFFs. This constant drain of capital deprives governments of the funds necessary to invest in infrastructure, education and essential healthcare. These IFFs result from corruption, money laundering, transnational organised crime, and tax evasion.
The challenge in addressing IFFs is their complexity. These financial flows result from the exploitation of legal loopholes, and the use of sophisticated tax avoidance schemes and hidden ownership structures that make them exceedingly difficult and costly to track. Criminal networks exploit operational weaknesses by utilising shell companies, trade mis-invoicing, and fraudulent financial transactions to siphon money out of Tanzania and other countries across Africa.
IFFs disproportionately impact the most vulnerable community members. When resources meant for schools, healthcare, and public infrastructure are instead funnelled into offshore accounts, ordinary citizens bear the cost. As people see their hard-earned taxes disappearing into a system that often seems rigged against them, the erosion of trust in public institutions follows. Addressing this issue is not just about economic justice; it’s about restoring faith in governance and ensuring that public resources serve the public good.
Tanzania’s Legal Framework to Combat Illicit Financial Flows
During the training, ILP’s expert legal volunteers provided insights into key strategies for tackling illicit financial flows. Topics covered included:
Definition and sources of IFFs;
International and regional efforts to combat IFFs including the Financial Action Task Force (FATF) recommendations, the OECD’s Base Erosion and Profit Shifting (BEPS) initiative, and the Global Forum on Transparency and Exchange of Information;
The role of financial intelligence and cross-border cooperation;
How legal professionals can work to close regulatory gaps; and
Strategies for identifying and prosecuting financial crimes.
The session also outlined the steps that Tanzania has taken to establish a legal framework capable of tackling IFFs. These laws target different categories of these flows, including those resulting from corruption, organised crime, tax evasion and money laundering.
While legal measures are essential, implementation remains a challenge. Strengthening enforcement agencies, enhancing cross-border cooperation, and ensuring that legal practitioners are well-trained to navigate complex financial crimes are key to translating legal provisions into tangible results. This training was a step toward these goals, equipping TPBA members with the skills and knowledge to leverage these laws in the fight against IFFs. Lawyers are more than just advocates in courtrooms: they are guardians of accountability. They play a crucial role in scrutinising financial transactions, identifying loopholes in enforcement, and pushing for systemic reforms that strengthen the financial and legal institutions’ capabilities to detect and deter IFFs. Legal professionals are uniquely positioned to intervene at multiple levels. They can work within government institutions to draft more suitable legislations and policies, represent whistleblowers exposing IFFs-related crimes, and ensure that legal loopholes enabling illicit flows are closed.
A Path Forward
Training alone will not end IFFs. However, it can build momentum for a stronger legal response. As a result of ILP’s training session, TPBA members are now better equipped to hold financial criminals accountable, to protect public resources, and to support efforts to create a more transparent financial system.
At ILP, we believe that when lawyers stand firm against IFF-related crimes, when they demand transparency and when they push for reforms, they become a force for economic justice that benefits all in the society. This training was therefore more than a one-off event—it was an investment in the future of Tanzania’s legal system and economic integrity.
It is essential for members of the legal profession to sustain these efforts. Capacity-building initiatives should be part of a broader, ongoing strategy to strengthen Tanzania’s legal institutions. This includes continuous training, fostering international collaboration, and advocating for legal reforms that close loopholes and deter illicit financial activities.
Additionally, partnerships between the legal profession, financial regulators, and civil society organisations are crucial. Financial crimes are not fought in isolation; they require a collective response that brings together different stakeholders to share information, coordinate enforcement actions, and push for stronger legal protections.
The fight against IFFs is long and complex. But with committed professionals leading the charge, progress is not just possible — it is inevitable. ILP remains committed to supporting legal professionals in Tanzania and beyond, ensuring that the rule of law prevails, and that economic justice becomes a reality for all.