Compliance Overview
Understanding regulatory requirements in the Zanzibar Digital Free Zone.
Regulatory Framework
The Zanzibar Digital Free Zone operates under a modern regulatory framework designed to balance business flexibility with international compliance standards. All residents and entities must adhere to these requirements.
Key Principle
ZDFZ maintains compliance with international standards while providing a streamlined, digital-first approach to regulatory requirements. Our goal is to make compliance easy without compromising integrity.
Compliance Areas
KYC Requirements →
Know Your Customer verification for all residents and beneficial owners.
AML Policies →
Anti-money laundering policies and transaction monitoring requirements.
Annual Reporting →
Financial statements, annual returns, and regulatory filings.
Tax Compliance
5% tax (non-resident) or 15% tax (Zanzibar resident) on net operating income within the Zone.
Compliance Responsibilities
For Digital Residents
- ✓ Identity Verification - Complete KYC during registration and maintain valid documentation.
- ✓ Contact Information - Keep email and telephone number up to date (Terms of Use).
- ✓ Account Security - Maintain security of login credentials and notify immediately of any compromise (Terms of Use).
- ✓ Lawful Use - Use the Zone only for lawful activities; not engage in money laundering, terrorism, corruption or fraud (Charter, Article 3).
For Companies & Cooperatives
- ✓ Registry Updates - Notify the Registrar within 7 days of changes to Share Capital, share classes, or membership (Regulated Entity Code).
- ✓ Constitutional Amendments - Submit amendments to Memorandum/Articles within 7 days of adoption (Regulated Entity Code).
- ✓ Accounting Records - Maintain accurate records in the Financial Records Vault (Regulated Entity Code, Article 43).
- ✓ AML Compliance - DASPs must implement full AML program including Compliance Officer (Digital Assets Code, Articles 12-13).
International Standards
ZDFZ compliance framework aligns with international regulatory frameworks (Charter, Article 23; Digital Assets Code, Article 13):
FATF Recommendations
Financial Action Task Force standards for AML/CFT
International AML Standards
Anti-money laundering and counter-terrorism financing
Applicable International Law
International treaties to which Tanzania is party
Zanzibar & Tanzania Law
Applicable local laws and regulations
Key Deadlines
| Requirement | Deadline | Reference |
|---|---|---|
| Share Capital / Member Capital Changes | 7 days after approval | Regulated Entity Code |
| Share/Membership Class Changes | 7 days after approval | Regulated Entity Code |
| Constitutional Document Amendments | 7 days after adoption | Regulated Entity Code |
| DASP Record Retention | Minimum 5 years | Digital Assets Code, Art. 11 |
Note: Additional filing requirements and deadlines may be prescribed by the Regulator through future Regulations and Rules.
Non-Compliance Consequences
Failure to Comply
Non-compliance may result in sanctions as outlined in the Charter (Article 21) and Commercial Code:
- • Fines as determined by the Regulator's published Schedule
- • Suspension of registration or license
- • Revocation of registration or license
- • Cancellation of Digital Resident Registration (terminates all Zone rights and privileges)
Sanctions are proportionate to the nature and seriousness of the breach.