Financial Crime World

Private Banking Regulations Under Scrutiny in Tanzania, United Republic of

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A new study has raised concerns over the legal and regulatory framework governing private banking operations in Tanzania. The research, conducted by Abdallah Mrindoko Ally from the Department of Private Law at the Open University of Tanzania, highlights existing gaps in laws regulating mobile banking (M-banking) in the country.

The rapid growth of M-banking has brought about legal and institutional challenges that were previously unforeseen. The study reveals that Tanzania’s prevailing laws do not adequately address these issues, leaving room for regulatory loopholes to be exploited.

  • The existing laws do not provide a clear framework for regulating M-banking operations.
  • There is a lack of clarity on the roles and responsibilities of different stakeholders in the M-banking ecosystem.
  • The study highlights the need for a specific law regulating M-banking to address these gaps.

Recommendations

To bridge these gaps, Ally recommends enacting a specific law regulating M-banking and conferring powers on a dedicated institution to handle regulatory matters. He argues that this would enable better financial inclusion in the digital economy and protect consumers against financial risks.

  • Enactment of a specific law regulating M-banking operations.
  • Conferral of powers on a dedicated institution to handle regulatory matters.
  • Improved financial inclusion through digital banking channels.
  • Enhanced consumer protection through regulation and oversight.

Experts’ Views

Experts say that Ally’s research provides a timely wake-up call to policymakers and regulatory bodies in Tanzania. “It is essential to address these legal gaps to ensure the stability and credibility of private banking operations in Tanzania,” said a leading financial expert.

Impact on Policy and Legislative Developments

The study’s findings are expected to influence policy and legislative developments in the M-banking industry, promoting greater transparency and accountability in Tanzania’s financial sector.

  • “Tanzania’s digital economy boom sparks regulatory concerns”
  • “Mobile banking growth outpacing regulatory capacity in Tanzania”
  • “Financial inclusion through M-banking: A review of Tanzania’s progress”