Financial Crime World

Bank of Tanzania Officials to Uphold High Standards

The Bank of Tanzania has introduced new guidelines for its officials, aimed at promoting transparency and accountability. The new regulations outline the responsibilities, powers, and expectations of the Governor, Deputy Governors, and other officials.

Governance Structure

  • The Governor and Deputy Governors will sign agreements on behalf of the bank, issue notes and securities, manage day-to-day operations, and report financial statements.
  • They have been given full powers to act on behalf of each other in the absence of the other.
  • Officials must work full-time for the bank and cannot hold any other paid or unpaid office or engage in professional or private activities.

Salaries and Allowances

  • The salaries and allowances of officials will be determined by the President.
  • The fees and allowances of Board members will be determined by the Board with the approval of the Minister.

Discipline and Appointment of Staff

  • The Governor is responsible for appointing, terminating the appointment, and disciplining staff members.
  • The Board has the power to provide benefits for staff who die or retire, as well as their surviving dependents.

Secrecy Clause

All officials are expected to maintain secrecy regarding information acquired in the course of their employment or duties. This includes confidential information about the bank’s transactions or customers.

Capital and Reserves

  • The authorized capital of the Bank of Tanzania is set at 100 billion shillings.
  • A requirement has been set that 25% of net profits be transferred to the General Reserve Fund until the total capital reaches 10% of total assets. The Board will have the power to determine when profits should be retained in reserve.

Financial Year and Reporting

  • The financial year of the Bank of Tanzania is set from July 1st to June 30th.
  • Annual accounts must be closed on that date.

Balance Sheet Maintenance

In cases where assets are less than liabilities and statutory funds, the Minister will issue negotiable interest-bearing securities to restore capital levels. This measure aims to ensure the bank’s balance sheet remains healthy.

These new regulations come into effect immediately, and officials have been warned of the importance of upholding high standards in their work.