Financial Crime World

New Regulations Aim to Enhance Transparency in Social Security Schemes

===========================================================

The Tanzanian government has introduced new guidelines aimed at promoting transparency and accountability in the country’s social security schemes. The Guidelines for Regulatory Reporting of Social Security Schemes, issued by the Director General of Social Security Schemes, require schemes, managers, custodians, and administrators to submit regular reports to the authority and disclose information to members and stakeholders.

Objectives

The guidelines aim to:

  • Provide guidance on the information that needs to be submitted to the authority and disclosed to members and stakeholders
  • Enhance transparency and promote public confidence in social security schemes
  • Ensure market discipline by providing up-to-date information to various stakeholders
  • Ensure that schemes, managers, custodians, and administrators make adequate disclosures to members and the general public

Reporting Requirements

Under the new regulations:

  • Schemes are required to prepare and submit regulatory reports in the form and frequency prescribed by the authority
    • Annual report must include financial statements prepared in accordance with International Financial Reporting Standards (IFRS)
    • Further auditable information such as membership trends, administrative expenditure, investments, benefits payments, contributions, and risk management must be included
  • Schemes are required to make their annual reports available for reference, perusal or scrutiny by members and the public
  • Annual audited financial statements must be published in at least two newspapers of wider circulation in Tanzania

Sanctions

The guidelines provide for sanctions against schemes, managers, custodians, or administrators that contravene the provisions of these guidelines. The authority has the power to:

  • Direct a scheme to comply with the guidelines
  • Propose disqualification of the board of trustees or management of a scheme
  • Take any other necessary measures it considers appropriate

Effective Date

The new regulations come into effect immediately, replacing the Social Security Schemes (Annual Reporting) Guidelines, 2017.