Tuesday, September 24, 2019- Tanzanian central bank has cracked the whip on 5 commercial banks over lax anti-money laundering rules.

The regulator last month gave all banks and financial institutions in Tanzania 90 days to establish primary data centres in the East African nation, saying it will impose hefty fines on lenders that fail to comply.

In a statement on Monday, Bank of Tanzania (BoT) said the fines running over $800,000 (Sh83 million) were imposed over the banks’ “failure to conduct proper customer due diligence and file suspicious transaction reports to the (state-run) Financial Intelligence Unit (FIU).”

I&M Bank was the hardest hit with TSh655 million (Ksh29.62 million), followed by Equity Bank TSh580 million (Ksh Sh26.2m), UBL Bank Tsh325 million (KSh14.6m), Habib African Bank Tsh175 million (Ksh 7.9m) and African Banking Corporation Tsh145 million (Ksh6.5m)

In December, the International Monetary Fund warned that half of Tanzania’s 45 banks were exposed to adverse shocks and risked insolvency in the event of a global financial crisis.
Consequently, Tanzania’s Central Bank has revoked the licenses of at least nine banks since 2017, in a bid to safeguard the stability of the sector.

The fined banks were immediately not available for comment.


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