Bleak future for forex business

Arusha. Suspicions on money laundering and associated illegal transactions is the main reason behind the closure of foreign exchange shops in Arusha on Monday for inspections.

Investigations involving various government organs are currently underway and those implicated to be involved in 'dirty' money will face the full wrath of the law.

"They will be charged in courts and at the same time have their licenses revoked", the central bank governor FlorensLuoga announced here yesterday.

He said the closure of forex outlets in Arusha for inspections was part of a country-wide crackdown against the masterminds of syndicate behind money laundering, in particular, and those operating without licences.

He added that from now on the Bank of Tanzania (BoT) has suspended issuance of licenses to run bureaux de change and that it would be lifted after new regulations that would plug loopholes for illegal money transactions are put in place.

Shop owners suspected to have violated the existing central bank regulations on the currency exchange operations would have their licenses revoked until investigations are completed.

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