Chinese national forfeits millions in Tanzania illegal currency exchange case

Dar es Salaam. The Kisutu Resident Magistrate's Court has confiscated a sum totaling Sh185.788 million from Chinese citizen Xie Xiaomao (38), declaring it property of the Government of the United Republic of Tanzania.

Xiaomao, known as Celina in business circles, admitted to the charge of conducting foreign exchange operations without the required license from the Bank of Tanzania (BoT).

Alongside the forfeiture, the court imposed a fine of Sh2 million or a five-year prison sentence. Xiaomao opted to pay the fine, avoiding incarceration.

The ruling, delivered by Senior Resident Magistrate Rahim Mushi, followed Xiaomao's guilty plea in criminal case number 45,167 of 2024.

The defendant, a resident of Masaki known for her business activities, was found in violation of Regulation 4(1) and (2) of the Foreign Exchange Regulations Act of 2023, in conjunction with Section 13(1), (2)(a), and (3) of the Foreign Exchange Act of 1992.

Magistrate Mushi emphasized the defendant's acknowledgment of guilt and lack of contestation during proceedings, leading to the fine and forfeiture verdict.

"Xiaomao is a first-time offender who admitted to her wrongdoing without contest. Therefore, the court sentences her to a Sh2 million fine, with a five-year prison term as an alternative," stated Magistrate Mushi.

The confiscated funds include Sh16.797 million, $64,255 (approximating Sh168.99 million) and 500 Chinese Yuan, now under government possession as ordered by the court.

Senior State Attorney Christine Joas emphasized the legal framework under Section 13(1), (2) (a), and (3) of the Foreign Exchange Act of 1992 in her plea for the court's consideration during sentencing.

"While the prosecution lacks prior records of offenses by the defendant, we urge the court to apply the stipulations for penalty under the law," Attorney Joas asserted.

Xiaomao's defense attorney, Mrisho Mrisho, pleaded for leniency on the argument of his client's cooperation and status as a foreign national.

"My client's admission and cooperation should mitigate her sentence, given her first-time offense and compliance with the legal process," Mrisho argued.

After hearing arguments, Magistrate Mushi upheld the fine and ordered the full forfeiture of seized assets.

Transacting illegally

Attorney Joas detailed that Xiaomao conducted illegal foreign exchange transactions between January and May 2024 at a supermarket in Oysterbay, Kinondoni District. Acting on a tip-off, authorities conducted a sting operation, resulting in the seizure of marked Sh2.81 million during Xiaomao's arrest.

The defendant's arrest also yielded various foreign currencies and counterfeit money, prompting the legal action leading to today's court ruling.

The defendant has the right to appeal the ruling within the prescribed legal timeframe.