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
0% corporate tax with simple annual certification requirements.
Compliance Responsibilities
For Digital Residents
- ✓ Identity Verification - Complete KYC during registration and maintain valid documentation.
- ✓ Contact Information - Keep email, phone, and address current in your profile.
- ✓ Annual Renewal - Renew residency status before expiration.
- ✓ Activity Updates - Report significant changes to business activities.
For Companies & Cooperatives
- ✓ Beneficial Ownership - Declare and maintain current beneficial owner information.
- ✓ Financial Statements - Submit annual audited or reviewed financials.
- ✓ Annual Returns - File annual company returns confirming entity details.
- ✓ Director Updates - Report changes to directors within 14 days.
- ✓ AML Compliance - Implement internal AML policies for relevant businesses.
International Standards
ZDFZ compliance framework aligns with:
FATF Recommendations
Financial Action Task Force standards
EU AML Directives
Anti-money laundering requirements
OECD CRS
Common Reporting Standard for tax transparency
Zanzibar Law
Special Economic Zone regulations
Compliance Calendar
| Requirement | Frequency | Deadline |
|---|---|---|
| Digital Residency Renewal | Annual | Before expiration date |
| Company Annual Return | Annual | Within 60 days of anniversary |
| Financial Statements | Annual | Within 6 months of fiscal year end |
| Beneficial Ownership Update | As needed | Within 14 days of change |
| Director Changes | As needed | Within 14 days of change |
Non-Compliance Consequences
⚠️ Failure to Comply
Non-compliance may result in the following consequences:
- • Late filing penalties ($50-$500 depending on filing type)
- • Suspension of digital residency or company status
- • Restriction of banking and financial services
- • Removal from the Free Zone registry in severe cases
Compliance Support
ZDFZ provides tools and support to help maintain compliance:
Automated Reminders
Email and portal notifications for upcoming deadlines.
Online Filing
Submit all required filings through the resident portal.
Compliance Helpdesk
Dedicated support for compliance questions and guidance.