On Monday (23 Sep), the Bank of Tanzania fined 5 banks a total of about TZS 1.88 billion (USD 800,000) for breaching AML regulation. In a statement, Tanzania’s Central Bank said the penalties were imposed on five commercial banks because they failed to conduct proper customer due diligence and file suspicious transaction reports to the (state-run) Financial Intelligence Unit (FIU).
I&M Bank faced a heavy penalty of TZS 655 million, while Equity Bank for TZS 580 million, UBL Bank for TZS 325 million, Habib African Bank for TZS 175 million, and African Banking Corporation for TZS 145 million.
As per the reports, the regulator has granted a period of three months to the sanctioned banks to implement various AML measures, including disciplinary action against all staff members “who were involved in opening implicated deposit accounts contrary to KYC requirements”.
In August, the regulator gave 90 days to all banks and financial institutions of the country to establish primary data centers in the East African nation, and stated that lenders will pay heavy fines if they don’t comply.
In order to safeguard the stability of finance sector, the Central Bank of Tanzania has revoked the licenses of at least nine banks since 2017.
In December, the IMF stated that nearly half of Tanzania’s 45 banks were vulnerable to adverse shocks and risked insolvency in the event of a global financial crisis.
Source – WeeTracker