This month's finance briefing will summarise some of the key changes which … The Written Laws (Miscellaneous Amendment) Act No. Tanzania’s amended Value Added Tax Regulations Regulation 16(2) then sets out a non-exhaustive list as to the type of provisions that would be considered "unfair" and these include limitation of liability of the financial service provider in the event of total or partial non-performance of contractual obligations, providing for termination without notice to the consumer or excluding or limiting the right of the consumer to pursue legal action. Regulation 9 also requires that every financial service provider reports consumer protection matters to the Bank of Tanzania in the form and at the time prescribed by the Bank of Tanzania. Delegation of Financial Duties by Heads of Departments 10 6. 10. Under the Bank of Tanzania (BoT) Act, 2006[ 17 ], the Minister responsible can make necessary or desirable regulations to facilitate the smooth running of the banking business[ 18 ]. Regulation 30 requires that a financial service provider shall notify a consumer in writing any changes to the following: (a) interest rates to be paid or charged; (b) any non-interest charge on any account of a consumer; and (c) any other key product features or previously agreed terms or conditions such as procedures for cancellation, prepayment of loans and transfers of loan servicing. The NBAA, is entrusted under the Auditors and Accountants (Registration) … Importantly Regulation 47 requires a financial service provider to avoid conflicts of interest when handling consumer complaints. The main laws governing the banking industry in Tanzania are the Bank of Tanzania Act, 2006 and the Banking and Financial Institutions Act, 2006. Financial Discipline 10 9. Bank of Tanzania is mandated to regulate and supervise all banks, financial Institutions and Bureau de Change in the country. Further, Bank of Tanzania is mandated to regulate and supervise all financial matters of all social security schemes (Pensions corporations), National Health Insurance Fund (NHIF) and Workers Compensation Fund (WCF) in Tanzania. The Bank of Tanzania can also impose a variety of penalties and sanctions on non-compliant financial service providers including a fine not exceeding TZS 20 million (approximately USD 8700) or a suspension of operations for a period not exceeding one year, amongst other severe penalties. The consumer will also have to sign the key facts statement and any financial service provider must retain this signed version. The financial service provider will then also have to: Regulation 36 also requires that financial service providers ensure that appropriate security and control measures are put in place to protect consumers' financial and personal information. In these Regulations unless the context requires otherwise:- A consumer may also escalate its complaint to the Bank of Tanzania if the complainant has not received a response from the financial service provider (provided the time limit, which varies between six (6) hours to fourteen (14) days depending on the type of product that is the subject of the complaint, has expired) or if the complainant is dissatisfied with the decision provided that the complaint is escalated within 14 days of the complainant receiving the notification of the resolution from the financial service provider. Financial Laws (Miscellaneous Amendments) Act, 1997 (Act No. Set out the powers that the Bank of Tanzania has in terms of enforcing non-compliance with the Regulations. after a humble beginning, when less than 1% of the adult population had access to mobile financial services in 2008, 90% had access by … In addition, the Regulations place an obligation on a financial service provider to adopt policies that are consistent with its own size and risk profile, which simultaneously allows it to discharge its obligations under the Regulations. management, and regulation of the collection and use of the finances of the United Republic and for enhancing Parlia-mentary control and supervision of public funds and re-sources, and for related matters. (3) Notwithstanding the provisions of sub regulations (1) and (2), a reporting person may verify any of the particulars referred to in sub regulation (1) or (2) with information which is obtained from any other independent source, if it is believed to be reasonably necessary The officer of the financial service provider shall not be involved in processing of the complaints if they are party to or have an interest in the complaint. The Financial Regulations Division (FRD) deals with the development of the regulatory framework, which influences the operations of the country’s financial sector. 41 Banking and Financial Institutions Act, Cap. New Bank of Tanzania Regulations on Financial Consumer Protection Key definitions under the Regulations. Regulation 16(1) sets out that the financial service provider shall provide a consumer contract that clearly sets out the rights and obligations of all parties to the transaction. • A supplier of financial services is required to issue periodic statements to customers. Is your business prepared for climate change? Conformity with Law and Financial Regulations 10 7. Tanzania has a tiered but relatively new and shallow financial sector, consisting of 20 licensed banks and 11 non-bank financial institutions, and a 17.5% degree of monetization. Departmental Accounting Instructions 9 5. 2018 has been a turbulent year for the Tanzania financial sector, five community banks got closed by the Bank of Tanzania (BoT) in early 2018 due to inadequate capital requirements. Latest publications. (4) Any person licensed to provide Network Facilities, Network Services or Application Services from 1st July 2016 shall be required to offer shares to the public and subsequently list its shares on a stock exchange in Tanzania in accordance with the requirements of the Capital Markets and Securities Act within 1.3 Authority’s Manuals 1.3.1 These Financial Regulations shall be implemented in conjunction with Tanzania’s budget to education sector between 2005 and 2015 was at the average of 18% with some financial years (2006/7 and 2008/9) the percentage reaching 20%. In Tanzania, all companies are required by the Companies Act of 2002 to prepare financial statements, either in English or Swahili, in compliance with the regulations prescribed by the Ministry of Finance and Planning of Tanzania (MoFP) or the National Board of Accountants and Auditors (NBAA).. Application 2. Clyde & Co LLP is a limited liability partnership registered in England and Wales. Introduce a variety of protections for consumers in terms of how financial service providers offer, market and deal with complaints related to the financial services that they offer to consumers; and. Regulation 4 provides for a general provision that every financial service... Fair and Equitable Treatment of Consumers. In this way, the Government partly met the agreement of the international community of spending at least 20% of the GDP in education. This Act may be cited as the … 7 of 2004) Gaming Act, Cap. Regulations - The Banking and Financial Institutions (Financial Leasing) … Accounting Manual 9 4. This briefing is prepared for clients and contacts of Clyde & Co Tanzania. Continuting the theme of investment in Tanzania, Regulation 5 supplements the Act, confirming that any person intending to obtain a loan from a local or foreign bank or local or foreign financial institution, where said loan is secured by a right of occupany, a lease of right of occupancy or a derivative right, must submit a declaration to the Commissioner for Lands (the … An Act to provide for comprehensive regulation of banks and financial institutions; to provide for regulation and supervision of activities of savings and credit co-operative societies and schemes with a view to maintaining the stability, safety and soundness of the financial system aimed at reduction of risk of loss to depositors; to provide for repeal of the Banking and Financial … Most bank branches are concentrated in Dar es Salaam, and only a few have a countrywide network that could be linked to the provision of microfinance services. THE UNITED REPUBLIC OF TANZANIA No. 79, 1994 PART I PRELIMINARY PROVISIONS'' 1. [ ] ENACTED by the Parliament of the United Republic of Tanzania. Attached to this at Regulation 7(2) is the requirement that the financial service provider put in place adequate information management systems for measuring, monitoring, controlling and reporting any consumer protection issues. Regulation 6 also sets out the responsibilities of the senior management which are similarly wide ranging and include monitoring the compliance of the financial service provider in all aspects of its operations and identifying any financial products offered by the financial service provider that are a particular risk from a consumer protection compliance perspective. The Bank of Tanzania will, as per Regulation 25, issue guidelines in relation to any charges or fees imposed on products or services offered by financial service providers. The BFIA '06 and the Regulations vest a greater independence in the Bank of Tanzania ("BoT") than its predecessor, by granting the BoT certain powers relating to the licensing, regulating and supervising of banks and financial institutions in Tanzania. Clyde & Co Tanzania accepts no responsibility for loss occasioned to any person acting or refraining from acting as a result of material contained in this summary. Regulation 23 requires that a financial service provider provides agreements to consumers that include certain key terms and conditions which includes: (a) the rights and responsibilities of the consumer and financial service provider, including those conditions that may lead to termination, (b) all interest rates, costs, fees and charges, (c) notification to consumers of any changes to the agreement, (d) the penalties and other remedies in the event of breach, (e) the contact information for the financial service provider's consumer service and for dispute resolution services. In these Regulations unless the context otherwise requires- Cap 342 “Act” meansthe Banking and Financial Institutions Act; “allied undertaking” includes an activity as may be specified by the Bank to be allied or related to the business of banking; “applicant” means applicant for a license; “Bank” means the Bank of Tanzania; • Manufacturers of goods supplied from mainland Tanzania to Zanzibar have to produce specified documents to warrant zero rating of such goods. Regulations 43 and 44 then require that the financial service provider establishes a mechanism for receiving and processing consumer complaints and requires that the financial service provider provides information of this mechanism to the consumer. The Bank of Tanzania must also approve any charges intended to be imposed on any new financial products to be introduced by the financial service provider. © Clyde & Co LLP. Ü2ËÁý¤ÌÓ²ï'ûÝñð –O/OÇÃ( p"ö¹R`Õ¶ƒ4 h† Regulation 10 requires that financial service providers do not discriminate consumers. No part of this summary may be used, reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, reading or otherwise without the prior permission of Clyde & Co Tanzania. Regulation 52 however sets out that in order for the Bank of Tanzania to intervene it must be satisfied that the financial service provider had handled the complaint to its finality and only if the complainant has suffered financial loss or material inconvenience. 884 on 22 November 2019. There is also a requirement for financial service providers to have greater governance and control over its agents. financial institutions except where prescribed otherwise by the Bank in any other Regulations. the Tanzania Revenue Authority bearing such a number. Furthermore, Regulation 5  imposes responsibilities on the board of directors of the financial service provider (to include the overseeing of the implementation of a compliant financial consumer protection policy, ensuring that senior management has adequate processes in place for providing information necessary for the monitoring of these initiatives and to employ or appoint staff with sufficient knowledge in this regard. THE UNITED REPUBLIC OF TANZANIA THE LOCAL GOVERNMENT FINANCES ACT, 1982 (This edition of the Local Government Finances Act, 1982 incorporates all the amendments made to it since its enactments in 1982 up to 30th June, 2000 and is printed under the authority of section 18 of the Interpretation of Laws and General Clauses Act, 1972). The Regulations give every consumer the right to file a complaint against a financial service provider. The Bank of Tanzania will, as per Regulation 25, issue guidelines in relation to any charges or fees imposed on products or services offered by financial service providers. Further advice should be taken before relying on the contents of this summary. Financial service providers will also be required to provide a key facts statement for its products or services to the consumer through a convenient channel. ¦ñå4p2¦Š›ÓÀ8‡óÔåÃ:>űV. 342, 2006 Capital Markets and Securities Act, Cap. Several banking and finance regulations have been revoked and replaced by the Bank of Tanzania (BoT). Duty to Report Unsatisfactory Application of Regulations 10 8. the stock exchange in Tanzania. In this article, we provide an overview of the new Bank of Tanzania (Financial Consumer Protection) Regulations 2019 (the Regulations) which were published in Government Notice No. Regulation 11 sets out that every financial service provider or, importantly, its agent does not employ unfair business practices in dealing with its consumers. Whilst the Regulations do not require the contract between the financial service provider to be "fair", Regulation 16(2) sets out when the contracts will be considered "unfair" and this is where there is a significant imbalance between the two parties' rights and obligations. Regulation 60(1) provides that the Bank of Tanzania has a clear supervisory mandate in relation to the objective of financial consumer protection. Interpretation 3. The division seeks to develop an effective regulatory framework for deposit-taking and non-deposit-taking financial institutions and the supervision of the pensions industry, as well as to … 12 of 2011 - for Tanzania Zanzibar (Includes Amendment of Criminal Procedures Act, No. Regulation 45 requires that every financial service provider develops a fair redress mechanism and compensation policy for an aggrieved consumer. New Mining (Disputes Resolution) Rules Issued April 30, 2021 - 11:52 am; Court of Appeal Illuminates on Jurisdiction of Courts in Tanzania April 27, 2021 - 12:31 pm; Complaints Desk Launched for Businesses March 29, 2021 - 3:29 pm; Archive by Date tanzania has witnessed unprecedented uptake of mobile financial services (mFS) in the span of five years. These Regulations may be cited as the Anti-Money Laundering (Electronic Funds Transfer and Cash Transactions Reporting) Regulations, 2019. We aim to keep our clients abreast of developments in Tanzania as they happen and if you have any questions on the issues raised above please contact us directly. Financial Duties of a Head of Department 9 3. In these Regulations unless the context otherwise requires - “Act” means the Banking and Financial Institutions Act; “Bank” means the Bank of Tanzania; “bank” has the meaning ascribed to it in the Act; Authorised and regulated by the Solicitors Regulation Authority. A couple of new banks entered, latest bank China Dasheng Bank Limited, got granted a banking license by the Central Bank of Tanzania (BOT), as a new commercial bank … Regulation 8 requires that appropriate financial consumer protection policies are in place and that these policies would include: It is required that a financial service provider annually reviews its consumer protection policies and submits to the Bank of Tanzania the revised policies (indicating all changes) not later than thirty days after the Board of Directors approved the new policy. the roles and responsibilities for consumer protection at all levels, compliance risk management practices for consumer protection that facilitates the identification, measurements, monitoring and control of risks, information sharing of consumer protection among functional units including complaint statistics, fraud reports and legal claims, disclosure in respect of accountability, transparency, complaint handling process and other redress channels, review of financial products or services to identify, monitor and control consumer protection risks, adequate control mechanisms to safeguard consumers' assets against incidences of fraud, misappropriation and misuse, procedures that aim to protect consumers' deposits and other assets against internal and external fraud or misuse regarding consumers' accounts, periodic audit for control systems to ascertain consumer protections adequacy and effectiveness to guard against breaches, regular update systems to guide against possible security lapses and, periodic internal risk assessment to identify and assess data security risks on systems and appropriate control to restrict and monitor access to the database containing the consumers' information, take disciplinary action against the employees involved in the fraud, misappropriation or misuse, promptly refund a consumer for the actual amount lost, unless it is proved that the consumer was negligent or fraudulent, require consumers to update their details within the timeline specified by the Bank of Tanzania, create a convenient avenue through which consumers can update their details, continuously create awareness as to fraudulent practices and the consumers' responsibility to guard against threats, require consumers to update their records as and when the need arises to ensure data accuracy and enhance protection. 2. Notwithstanding anything to the contrary, deposits with subsidiaries or branches of Tanzania banks or financial institutions outside Tanzania shall not be covered. Regulation 35 sets out that every financial service provider is liable for a consumers' loss that occurs through fraud, misappropriation or misuse of a consumers' assets that are held, administered or controlled by the financial service provider. The compensation policy must also be in line with the guidelines issued by the Bank of Tanzania and include details of compensation for erroneous debits, excess charges and financial loss to consumers due to staff negligence or fraudulent activities. These Regulations shall be applicable in Mainland Tanzania. Three This provides for powers to take pre-emptive measures to address non-compliance and Regulation 60(5) grants powers to the Bank of Tanzania to investigate any potential breaches of the Regulations through means including onsite examinations and complaint handling. Governance by Financial Service Providers. 27 of 1997): Aimed at amending certain financial laws, in order to address areas in affected legislations that had potential conflict with some provisions in the Tanzania Investment Act of 1997. Public Funds 11 10. Sign up to receive email updates straight to your inbox! 14 OF 2001 President An Act to impose and alter certain taxes and duties and to amend certain written financial and tax laws relating to collection and management of public revenues [] ENACTED by the Parliament of the United Republic of Tanzania PART I PRELIMINARY PROVISIONS 1. However, a general view of the budget Regulation 25(2) requires that any financial service provider takes note of these guidelines and does not impose any charges that exceed this amount. Regulation 11(2) defines what could be considered unfair business practices including abusive debt recovery practices (as defined within the Regulations), granting overdraft services and charging fees without prior opt-in by the consumer and any bundling or tying of its products. Regulation 25(2) requires that any financial service provider takes note of these guidelines and does not impose any charges that exceed this amount. Regulation 17 places the following two obligations on financial service providers in respect of agents requiring the financial service provider to (a) enter into a formal agency agreement; and (b) continuously monitor the performance of the agent. Regulation 53(1) dictates that a determination by the Bank of Tanzania shall be binding and conclusive on the parties, subject to the complainant or financial service provider having the option to judicially review the decision. Regulation 4 provides for a general provision that every financial service provider shall have in place a structure of governance that will ensure the effective implementation of consumer protection in accordance with the provisions of the Regulations. These Financial Regulations are issued for guidance of the persons responsible for dealing with the Authority’s finances both with regard to authorization, approval, receipts, custody and payments, whether of revenue or capital nature. (3) Subject to the Act and these Regulations, the Board shall formulate guidelines for protection of Deposit Accounts and Insolvency Payments out of the Fund. Interpretation 3. Financial service providers  cannot share consumers' information with a third party except with the consumer's consent or as is required by law. Constitution of the United Republic of Tanzania The Constitution of the United Republic of Tanzania, 1977 is the mother of all laws of the country. These new regulations do not dramatically depart from the provisions of the old regulations, but they do introduce more stringent rules for banks and financial institutions in certain areas.

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