The Banking and Financial Institutions (Disclosures)
GN. NO. 289
GOVERNMENT NOTICE NO. 289 published on 22/08/2014
THE BANKING AND FINANCIAL INSTITUTIONS
(DISCLOSURES)
REGULATIONS, 2014
ARRANGEMENT OF REGULATIONS
Regulation Title
PART I
PRELIMINARY PROVISIONS
1. Citation.
2. Application
3. Interpretation.
4. Objectives.
PART II
RESPONSIBILITIES
5. Responsibilities of the Board of Directors.
6. Responsibility of senior management.
PART III
PUBLICATION AND DISCLOSURE OF FINANCIAL STATEMENTS
7. Quarterly financial statements.
8. Audited financial statements.
9. Exhibition of audited financial statements.
PART IV
OTHER DISCLOSURES
10. Disclosure of penalties.
11. Other disclosures.
12. Customer Complaint redressal mechanism.
13. Disclosures in Kiswahili and English.
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14. Adherence to International Financial Reporting Standards
requirements.
PART V
GENERAL PROVISIONS
15. Rectification of published information.
16. Failure to publish financial statements.
17. Penalty charge recovery.
18. Penalty for misrepresentation.
19. Sanctions.
20. Revocation GN. No. 368 of 2008.
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SCHEDULE
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THE BANKING AND FINANCIAL INSTITUTIONS ACT
(CAP. 342)
_______
REGULATIONS
______
(Made under section 71)
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THE BANKING AND FINANCIAL INSTITUTIONS
(DISCLOSURES) REGULATIONS, 2014
PART I
PRELIMINARY PROVISIONS
Citation 1. These Regulations may be cited as the Banking and
Financial Institutions (Disclosures), 2014.
Application 2. These Regulations shall apply to all banks and financial
institutions.
Interpretation 3. In these Regulations, unless the context otherwise
requires-
“Act” means the Banking and Financial Institutions Act;
“Bank” means the Bank of Tanzania;
“bank” has the meaning ascribed to it in the Act;
“director” has the meaning ascribed to it in the Act;
“disclosure” means publishing or displaying information to the
general public as prescribed in these Regulations;
“financial institution” has the meaning ascribed to it in the Act;
“material information” means information which-
(a) is required to be disclosed under these Regulations;
and
(b) if not disclosed or misstated, changes or influence
the assessment or decision of a person relying on the
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disclosure concerned for the purposes of making
investment or other economic decisions; and
“Officer” has the meaning ascribed to it in the Act.
Objectives 4. The objectives of these Regulations are to-
(a) ensure that every bank or financial institution
maintains a level of transparency adequate to enable
depositors, creditors and the public at large to make
informed decisions;
(b) promote and maintain public confidence in the
banking sector; and
(c) enhance market discipline by providing financial
information to various stakeholders.
PART II
RESPONSIBILITIES
Responsibilitie 5.-(1) The Board of Directors of a bank or financial
s of the Board
of Directors institution shall develop and implement a disclosure policy and be
responsible for adherence and compliance with the requirements
of these Regulations and the policy.
(2) The disclosure policy referred to under sub-regulation
(1) shall at minimum address the following-
(a) contents, medium, language, appropriateness and
frequency of the disclosures to the general public;
(b) outline the roles and responsibilities of each person in
the bank or financial institution relating to the
disclosures;
(c) establish the procedure for disclosing material
information;
(d) establish internal controls over its processes for
making such disclosures including internal controls for
verifying or reviewing the accuracy of the information
disclosed; and
(e) establish procedures for handling damage resulting
from disclosure of information.
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Responsibility 6.-(1) Senior management of a bank or financial institution
of senior
management shall be responsible for developing and implementing an internal
review system to ensure timely disclosure of accurate, complete
and relevant information.
(2) The internal review referred to in sub-regulation (1)
shall be carried out by an independent person not responsible for
preparing the information which the bank or financial institution
is required to disclose pursuant to these Regulations.
PART III
PUBLICATION AND DISCLOSURE OF FINANCIAL STATEMENTS
Quarterly 7.-(1) A bank or financial institution shall publish its
financial
statements quarterly financial statements in the form prescribed by the Bank
in at least two newspapers of wide circulation in the United
Republic, excluding weekends and public holidays.
(2) The publication referred to in sub-regulation (1) shall
be made in at least one Kiswahili and one English newspaper.
(3) The quarterly financial statements under sub-regulation
(1) shall be published within thirty days after the end of the
quarter.
(4) A community bank and a microfinance bank shall, in
addition to the requirements prescribed in sub-regulation (1),
display quarterly financial statements in public places within the
areas in which the bank operates.
(5) Quarterly and annual audited financial statements shall
be duly signed by the Chief Executive Officer and Head of
Finance, and be attested by Internal Auditor and two non-
executive board members.
(6) A copy of Quarterly and annual audited financial
statements referred to under sub-regulation (5) shall be submitted
to the Bank within five days after publication, along with
newspaper cuttings thereof.
Audited 8.-(1) A bank or financial institution shall publish its
financial
statements annual audited financial statements in the form prescribed by the
Bank at least once every year in at least two newspapers of wide
circulation in Tanzania, excluding weekends and public holidays.
(2) The publication referred to in sub-regulation (1) shall
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be made in at least one Kiswahili newspaper and one English
newspaper.
(3) The annual audited financial statements shall be
published within fifteen days after approval of the board of
directors of the bank or financial institution but not later than one
hundred and five days after the end of the financial year.
Exhibition 9. A bank or financial institution shall at all times exhibit
of audited
financial copies of its last audited financial statements in a conspicuous
statements. position in the public part of its principal place of business and in
its branches and agencies.
PART IV
OTHER DISCLOSURES
Disclosure of 10.-(1) A bank or financial institution shall disclose in
penalties
detail all issues of non-compliance with provisions of the Act,
regulations, circulars and directives in force in respect of which a
bank or financial institution has been penalized for, indicating
penalties and other sanctions imposed by the Bank during the
period covered by the disclosure.
(2) The disclosures referred to under sub-regulation (1)
shall be published together with Quarterly and Audited financial
statements.
Other 11.-(1) A bank or financial institution shall publish at least
disclosures
quarterly, in at least one Kiswahili newspaper and one English
newspaper of wide circulation in Tanzania, excluding weekends
and public holidays the following information-
(a) base or prime lending rate, rate of returns including the
maximum spread above the base or prime lending rate
for all loan/investment products;
(b) deposit rates for all types of deposits;
(c) fees or charges on all banking products or services,
duly itemized as per the Schedule; and
(d) any other information as the Bank may prescribe.
(2) A bank or financial institution shall display the
information referred to in sub-regulation (1) in a conspicuous
position in the public part of its principal place of business and in
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its branches, ATM cubicles, website and agencies.
(3) A bank or financial institution shall submit to the Bank
a printed copy and a soft copy of its disclosures under sub-
regulation (1) within five working days after publication.
(4) Notwithstanding the provisions of this regulation a bank
or financial institution shall publish and submit to the Bank the
information referred to in sub-regulation (1) whenever a material
change occurs.
Customer 12.-(1) A bank or financial institution shall ensure that the
Complaint
redressal customer complaint redressal mechanism and the relevant contact
mechanism information including phone numbers or emails of the bank or
financial institution are widely publicized using appropriate
communication channels.
(2) The information referred to under sub-regulation (1)
shall be displayed in a conspicuous position in the public part of its
principal place of business and in its branches and agencies.
Disclosures in 13. The disclosures referred to in regulations 7,8,10, 11,
Kiswahili and
English and 12 shall be published in Kiswahili and English.
Adherence to 14. A bank or financial institution shall, in addition to
International
Financial publishing the information required under these Regulations,
Reporting comply with disclosure requirements under the International
Standards Financial Reporting Standards.
requirements
PART V
GENERAL PROVISIONS
Rectification 15. Where the Bank is satisfied that the published and
of published
information disclosed financial statements and other information of a bank or
financial institution do not comply with the requirements of these
Regulations or contain misleading information, or are not
published or displayed in the form and with the contents specified
by these Regulations, the Bank may require the bank or financial
institution to-
(a) amend or correct the information;
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(b) re-publish the amended or corrected information; or
(c) submit to the Bank any additional documents or
information or explanations relating to any document
or information.
Failure to 16. A bank or financial institution which fails to publish its
publish
financial financial statements shall be liable to a penalty of one million
statements shillings for every day during which such failure continues.
Penalty 17. The penalty charge to be imposed under regulation 16
charge
recovery may be recovered by deducting from any balance of, or moneys
owing to the bank or financial institution concerned or collected by
written notice.
Penalty for 18. A bank or financial institution that makes a
misrepresenta
tion misrepresentation in its financial statements shall be liable to a
penalty of one million shillings for every day from the date of
publication until such misrepresentation is corrected.
Sanctions 19. Without prejudice to penalties and actions prescribed
by the Act, the Bank may impose on any bank or financial
institution any of the following sanctions for non-compliance-
(a) suspension from lending and investing activities;
(b) prohibition from participating in the interbank
foreign exchange markets;
(c) prohibition from issuing letters of credit or
guarantee;
(d) suspension of capital expenditure;
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(e) prohibition from establishing or opening new
branches;
(f) suspension from access to the credit facilities of the
Bank;
(g) suspension of the declaration or payment of
dividends;
(h) prohibition from accepting new deposits;
(i) suspension or removal from office of the defaulting
director, officer or employee;
(j) disqualification of defaulting director, officer or
employee from holding any position or office in any
bank or financial institution under the supervision of
the Bank;
(k) revocation of banking licence; or
(l) such other sanctions or penalties as the Bank may
deem appropriate.
Revocation 20. The Banking and Financial Institutions (Publication of
GN. No. 368
of 2008 Financial Statements) Regulations, 2008 are hereby revoked.
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SCHEDULE
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(Made under Regulation 11)
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MINIMUM DISCLOSURES OF CHARGES AND FEES
NUMBER ITEM/TRANSACTION CHARGE/FEE
1.0 Current Accounts
(a) Required minimum opening balance XXX
(b) Monthly service fee (breakdown per customer XXX
type)
(c) Cheque withdrawal over the countee XXX
(d) Fees per ATM withdrawal XXX
(e) ATM mini statement XXX
(f) Interim statement per page XXX
(g) Periodic scheduled statement XXX
(h) Cheque book XXX
(i) Dishonoured cheque XXX
(j) Special clearance XXX
(k) Counter cheque XXX
(l) Stop payment XXX
(m) Standing order XXX
(n) Balance enquiry XXX
(o) New ATM card issuance XXX
(p) ATM card renewal or replacement (indicate XXX
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NUMBER ITEM/TRANSACTION CHARGE/FEE
costs for different card types)
(q) Overdrawn account interest charge XXX
(r) Unarranged overdraft XXX
(s) Interbank transfer XXX
(t) Bill payments through ATM XXX
(u) Deposit fee XXX
(v) Other (please specify) XXX
2.0 Savings Accounts (Disclose for product specific
types)
(a) Required minimum opening balance XXX
(b) Monthly service fee XXX
(c) Interim statement XXX
(d) Account closure XXX
3.0 Electronic Banking
(a) Internet banking monthly fee XXX
(b) Internet transfers XXX
(c) SMS banking XXX
(d) Other XXX
4.0 Foreign Exchange Transaction
(a) Purchase/sale of TCs transactions over the XXX
counter
(b) Purchase of foreign cheque XXX
(c) Sale/purchase of cash passport XXX
(d) Telegraphic transfer XXX
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NUMBER ITEM/TRANSACTION CHARGE/FEE
(e) Telex/SWIFT XXX
(f) Tranfer from foreign currency denominated XXX
account to local current account (within bank
and to other bank)
5.0 Personal Loans
(a) Processing/Arrangement/Appraisal fee XXX
(i) Personal loans XXX
(ii) Overdrafts XXX
(iii) Mortgage finance XXX
(iv) Asset finance XXX
(b) Unpaid loan instalment XXX
(c) Early repayment XXX
(d) Valuation fees XXX
(e) Other XXX
We, the undersigned have examined the above information and hereby declare
that the information is true and correct to the best of our knowledge and
information.
Name Designation Signature Date
1.
2.
3.
Dar Es Salaam, BENNO J. NDULU,
………….…………, 2014 Governor
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