Financial Crime World

Strengthening Consumer Protection in Tanzania’s Financial Services Sector

Regulatory Bodies Enhance Customer Confidence and Stability

The Central Bank of Tanzania has issued the Consumer Protection Regulations, a move aimed at promoting stability, growth, and innovation in the financial services sector while protecting customers from unfair business practices.

Key Provisions

  • The regulations apply to all financial institutions and service providers in Tanzania, including banks, microfinance institutions, savings and credit cooperatives, insurance companies, pension funds, and others.
  • The rules aim to protect consumers by ensuring transparency and fairness in transactions, preventing fraud and deceit, and promoting efficient customer service delivery.

Consumer Rights

Under the new regulations, consumers have the right to:

  • Lodge complaints with the Bank of Tanzania
  • Expect the Bank to investigate and determine disputes between consumers and financial service providers
  • Receive relief measures, including:
    • Compensation and refund
    • Correction of erroneous data or information
    • Cessation of unfair conduct
    • Formal apology

Regulatory Powers

The Governor of the Bank has the power to:

  • Revise decisions made by the Bank
  • Allow for judicial review of its decisions by the High Court of Tanzania

Sanctions for Non-Compliance

Financial institutions that fail to comply with the regulations may face sanctions, including:

  • Suspension from operations
  • Fines
  • Penalties

Response to COVID-19 Pandemic

In response to the pandemic, the Bank has taken measures to support consumers and financial service providers, including:

  • Adjusting regulatory requirements
  • Providing additional liquidity to banks
  • Reducing interest rates
  • Increasing commercial banks’ ability to borrow from the Bank
  • Promoting non-cash payments

Foreign Exchange Reserves

The Bank has confirmed that Tanzania has adequate foreign exchange reserves for importation of goods and will continue to monitor the situation, taking appropriate policy measures to limit the impact of COVID-19.