The Bank of Tanzania Act, 2006

Section heading for Interpretation in Part II, titled The Central Bank.

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Jurisdiction: Tanzania
Instrument: Act or statute
Citation: The Bank of Tanzania Act, 2006
Version: Undated source snapshot
Language: en
Official source: View official record ↗

administration of law appointment and qualification requirements appointments asset acquisition asset immunity asset protection bank accounts bank administration bank governance bank liquidation bank notes and coins bank officers bank powers bank supervision Banking and financebanking regulation banking services banknotes and coins benefits blocked accounts board eligibility board governance board meetings board powers +119 more

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About this statute

Section heading for Interpretation in Part II, titled The Central Bank. This section concerns regulatory and supervisory functions for clearance and settlement systems. Section 7 is titled “Formulation and implementation of monetary policy.” Section 8 concerns the appointment of the Governor and Deputy Governors. This section is about disqualification for appointment to the Board.

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Provisions of The Bank of Tanzania Act, 2006

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3
Section 3
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AI-assisted research summary: Section heading for Interpretation in Part II, titled The Central Bank.

3. Interpretation. PART II T h e C e n t r a l B a n k

Part

PART II

6
Regulatory and supervisory functions with respect to clearance and
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AI-assisted research summary: This section concerns regulatory and supervisory functions for clearance and settlement systems.

6. Regulatory and supervisory functions with respect to clearance and settlement systems.
7
Form ulation and. im plem entation o f m onetary policy
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AI-assisted research summary: Section 7 is titled “Formulation and implementation of monetary policy.”

7. Form ulation and. im plem entation o f m onetary policy.
8
A ppointm ent o f G overnor and D eputy Governors
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AI-assisted research summary: Section 8 concerns the appointment of the Governor and Deputy Governors.

8. A ppointm ent o f G overnor and D eputy Governors.
10
D isqualification for appointm ent to the Board
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AI-assisted research summary: This section is about disqualification for appointment to the Board.

10. D isqualification for appointm ent to the Board.
11
M eeting, quorum , conduct and decisions o f the Board
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AI-assisted research summary: Section heading on Board meeting, quorum, conduct, and decisions.

11. M eeting, quorum , conduct and decisions o f the Board.
12
Standing C om m ittees o f the Board
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AI-assisted research summary: Section heading: “Standing Committees of the Board.”

12. Standing C om m ittees o f the Board.
13
M a n a g e m e n t o f th e B ank and p o w e rs o f th e G o v e rn o r and
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AI-assisted research summary: This section is about the management of the Bank and the powers of the Governor and Deputy Governors.

13.M a n a g e m e n t o f th e B ank and p o w e rs o f th e G o v e rn o r and Deputy Governors.
14
Section 14
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AI-assisted research summary: This section concerns the remuneration of the Governor, Deputy Governors, and members of the Board.

14. Rem uneration o f G overnor, D eputy G overnors and m em bers o f the Board. 1 15 No. 4 Dank o f Tanzania 2006 PART III C u r r e n c y lk.
4
( 1) There shall continue to exist a corporation going by the name
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AI-assisted research summary: The Bank of Tanzania continues to exist as a corporation and has corporate powers such as suing and being sued and dealing with property.

4 .-( 1) There shall continue to exist a corporation going by the name and style o f the Bank o f Tanzania. Establish m ent o f the Biink (2) The Bank o f Tanzania shall be a body corporate and in its corporate name shall— (a) have perpetual succession and a common seal; (b) be capable o f suing and being sued; and 121 No. 4 Bank o f Tanzania 2006 (c) subject to the provisions o f this Act, be capable o f acquiring, holding and alienating any movable or immovable property. P r i n c ip a l functions o f the Bank
5
( l ) The principal functions o f the Bank shall be to exercise the
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AI-assisted research summary: The Bank must carry out central bank functions, including monetary and exchange rate policy, issuing currency, supervising banks and financial institutions, managing reserves, and publishing economic statistics.

5 . - ( l ) The principal functions o f the Bank shall be to exercise the functions o f a central bank and, without prejudice to the generality o f the foregoing, to formulate, implement and be responsible for monetary policy, including exchange rate policy, to issue currency, to regulate and supervise banks and financial institutions including mortgage financing, development financing, lease financing, licencing and revocation o f licences and to deal, hold and manage gold and foreign exchange reserves o f Tanzania. (2) The Bank shall compile, analyse, and publish the monetary, financial, balance o f payments statistics and other statistics covering various sectors o f the national economy. (3) In the pursuit o f its objectives and performance o f its tasks, the Bank shall be autonomous and accountable as provided for under this Act.
6
( 1) The Bank shal 1
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AI-assisted research summary: The Bank must regulate and oversee payment, clearing, and settlement systems, and it may participate in, establish, and operate such systems.

6.-( 1) The Bank shal 1- (a) regulate, monitor, and supervise the payment, clearing and settlement system including all products and services thereof; and (b) conduct oversight functions on the payment, clearing and s e ttle m e n t s y stem s in any bank, fin ancial in s titu tio n or infrastructure service provider or company. Regulatory and supervi- so ry fu n c- tions with respect to clearance and settle ment system s (2) The Bank m a y - (a) participate in any such payment, clearing and settlement systems; (b) establish and operate any system for payment, clearing or settlement purposes; and (c) perform the functions assigned by or under any other written law for the regulation o f payment, clearing and settlement systems. 1 2 2 2006 Formulation and impleme ntation o f m onetary policy No. 4 Bank o f Tanzania
7
( 1) The primary objective o f the Bank shall be to formulate, define
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AI-assisted research summary: The Bank must set and carry out monetary policy to maintain domestic price stability and support balanced, sustainable national growth.

7.-( 1) The primary objective o f the Bank shall be to formulate, define and implement monetary policy directed to the economic objective o f maintaining domestic price stability conducive to a balanced and sustainable growth o f the national economy. (2) Without prejudice to subsection (1), the Bank shall ensure the integrity o f the financial system and support the general economic policy o f the Government and promote sound monetary, credit and banking conditions conducive to the development o f the national economy. (3) The Minister and the Governor shall, where circumstances require, consult each other with a view to exchanging information and seeking coordination on economic and financial matters.
8
( l ) There shall be appointed by the President a Governor who
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AI-assisted research summary: The President must appoint one Governor and three Deputy Governors, each generally serving five years and eligible for re-appointment, subject to stated exceptions.

8 . - ( l ) There shall be appointed by the President a Governor who shall, unless he dies or resigns or vacates or is removed from his office for good cause or is disqualified, hold office for a period o f five years and shall be eligible for a re-appointment. A p poin t m ent o f Governor and D eputy G overnors (2) No person shall qualify to be appointed as a Governor unless h e - (a) holds a university degree; (b) has not less than fifteen years experience in the fields of economics, banking, accountancy or finance or law; (c) has been in senior managerial positions in the government departments or institutions, private institutions or international organizations; and (d) has not been appointed and served as the Governor for two Consecutive term. (3) There shall be appointed by the President three Deputy Governors who shall, unless one dies, resigns, vacates or is removed from office for good cause or is disqualified, hold office for a period o f five years and be eligible for re-appointment for a further term o f five years only. (4) The appointment o f the Deputy Governors shall be made on the basis that at least one o f the appointees hails from either side o f the United Republic. 12 3 No. 4 Board of Directors Bank o f Tanzania 2006
9
{ l) There shall be a Board o f Directors o f the Bank and subject to
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AI-assisted research summary: The Board of Directors must handle the Bank’s policy and budget, and the Board Secretary must carry out listed administrative and advisory functions.

9 .-{ l) There shall be a Board o f Directors o f the Bank and subject to this Act, the Board shall be responsible for the determination o f the policy o f the Bank, approval o f its budget and for such other functions as are specifically conferred or imposed upon the Board by this Act or any other written law provided that the Governor and any other member o f the Board may refer any matter for consideration by the Board. (2) The Board shall consist o f - (a) the Governor, who shall be the Chairman; (b) Deputy Governors, who shall be Deputy Chairmen in the order determined by the Governor; (c) the Permanent Secretary to the Treasury o f the Government o f United Republic and the Principal Secretary to the Treasury o f the Revolutionary Government o f Zanzibar, all o f whom shall be ex-officio members; and (d) four non-executive D irectors at least one o f w hom hails from either side o f the United R epublic. ( 3 ) The P e r m a n e n t S e c r e ta r y to th e T r e a s u r y o f th e G o v e r n m e n t o f United Republic and the Principal Secretary to the Treasury o f the Revolutionary Government o f Zanzibar, may appoint in writing persons in th e p u b l i c s e r v ic e to be t h e i r r e p r e s e n t a t i v e s w h o s h a ll, at any meeting for which they are appointed, have the powers o f the Permanent Secretary or Principal Secretary, in their capacities as members o f the Board. (4) The non-executive Directors shall be appointed by the Minister and each shall hold office, unless he dies or resigns or vacates or is removed from office, for a term o f three years, and shall be eligible for re-appointment. (5) The members o f the Board shall be appointed on the basis o f merit from am o ngst persons who hold degrees or the equivalent qualification from an institution o f higher learning recognized in Tanzania and are experienced in economics, business and finance, banking, corporate law, accountancy or other disciplines relevant to the functions o f the Bank. (6) In considering the appointment o f a person to the office o f member o f the Board, regard shall be had in relation to that office, to the likelihood o f any conflict arising between the interests o f the Bank and any interests which that person has or represents. No. 4 (7) Bank o f Tanzania 2006 There shall be a Secretary to the Board who shall perform the -i following functions: (a) Councel and Secretary to the Board; (b) Writing and keeping records o f proceedings o f all meetings of the Board; (c) Convening and preparing meetings o f the Board as may be directed by the Chairmam; (d) advising on legal matters and keeping abreast laws governing the conduct o f business o f the Bank; and (e) Such other function as may be directed by the Board or the Governor.
10
(1) No person shail be qualified to be appointed as a member o f
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AI-assisted research summary: The provision says who cannot be appointed to the Board and when a Board member must stop holding office.

10.—(1) No person shail be qualified to be appointed as a member o f the Board, if he is - (a) a m e m b e r o f th e N a t i o n a l A s s e m b l y or th e H o u s e o f Representatives o r a local government authority; (b) a person who is a public servant within the meaning o f this term in the Public Service Act, other than the Permanent Secretary' to the Treasury o f the Government o f the United Republic and the Principal S ecretary to the Treasu ry o f the R evolutionary Government o f Zanzibar o their representatives for the purposes o f section 9(2)(c); • ' < t . * > (c) a director, officer, em ployee, consultant, lawyer, agent or shareholder o f a bank or a financial institution in respect o f which the Bank may exercise a regulatory power; or (d) an office bearer o f any o f the political parties registered in Tanzania (2) A member o f the Board shall be disqualified to hold office if he - -•*- « (a) acquires any attribute which had he not been a member, would disqualify him foi appointment; (b) becomes bankrupt, suspends payment or compounds with his creditors; (c) is adjudged or otherwise declared to be o f unsound mind; V - (d) is convicted o f a felony or any offence involving fraud or dishonest}'; 125 No. 4 Bank o f Tanzania 2006 (e) is absent without the leave o f the Chairman o f the Board, from three consecutive meetings o f the Board: or ( 0 tenders resignation. (3) No m em ber o f the Board shall be removed from his office on grounds other than those stated in this section. M eetings, quorum. conduct. and decisions o f the Board
11
(1) The Board shall meet as often as may be required for the
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AI-assisted research summary: The Board must meet at least once every two months, use the stated quorum and voting rules, and members with an interest must declare it and step back from quorum/attendance.

11.—(1) The Board shall meet as often as may be required for the conduct o f its business and affairs but shall meet at least once in every two months. (2) Meetings o f the Board shall be convened, and notice given in accordance with the by-laws o f the Bank and, in addition, the Chairman or in his absence, the Deputy Chairman, shall convene a meeting o f the Board within a reasonable time o f a requisition in that behalf by any member o f the Board. (3) Subject to subsection (4), quorum at meetings o f the Board shall be six members. (4) There shall be no quorum unless the Chairman or in his absence, the Deputy' Chairman and two non-executive members are present at the meeting. (5) Where in the opinion o f the Chairman or in his absence, the Deputy Chairman, any matter or business is o f an unusually urgent nature which cannot await the convening o f a meeting consisting o f the quorum, the matter may be decided at a meeting o f the Chairman or as the case may be, the Deputy Chairman and at least two Deputy Governors and one non-executive member and such decision shall be as valid and binding on the Bank as if it were a decision o f a meeting consisting o f the quorum and every such decision shall be reported to an extra ordinary meeting o f the Board. (6) Decisions o f the Board shall be reached by consensus. (7) Without prejudice to the provision o f subsection (6), where the members o f the Board fail to reach a consensus on any matter before the Board, the matter shall be decided by voting; and where the votes equals, the Chairman shall have a casting vote in addition to his deliberative vote. 126 No. 4 Bank o f Tanzania 2006 (8) Members o f the Board referred to under paragraph (c) o f subsection (2) o f section 9 shall not vote in the event the decision is to be reached by casting o f votes. (9) Any member o f the Board or o f its committees, who is interested in any matter involving the Bank, or in the exercise or proposed exercise by the Bank o f a power, shall declare that interest at every meeting o f the Board or its committees at which that matter or the exercise or proposed exercise o f the power, is considered by the Board or committee and the member o f the Board or that committee shall not be entitled to attend or be counted in a quorum present, at a meeting at which the member has interest in the matter being considered. (10) Where the decision o f the Board is reached by voting the Governor shall inform the Minister accordingly. (11) Subject to provisions o f subsection (3), no act or proceeding by the Board shall be invalidated by reason o f the existence o f a vacancy among the members and all acts done in good faith by a member o f the Board shall be valid notwithstanding that some defect in his appointment or qualifications be afterwards discovered. (12) Subject to other provisions o f this Act, the Board may regulate its own procedure.
12
(1) The Board shall appoint a Monetary Policy Committee, an
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AI-assisted research summary: The Board must appoint committees, define their structure and functions, and committees must report to the Board and keep minutes.

12.—(1) The Board shall appoint a Monetary Policy Committee, an Audit Committee and such other committees as it may be necessary for the discharge o f its functions; and it shall, subject to the provisions o f this Act, specify the composition and functions o f every committee appointed under this section and the terms and conditions upon which the committee shall exercise its functions. Standing Committees o f the Board (2) Every committee shall report to the Board at its next regular meeting on all the proceedings and actions o f the committee, and the Board may approve, vary or reverse any decision o f the committee or may give such directions affecting any action o f the committee as the Board may deem fit in the circumstances o f each case. (3) Subject to the provisions o f this Act and to any directions given by the Board in that behalf, each committee shall regulate its proceedings. 1 2 7 No. 4 Batik o f Tanzania 2006 (4) The Monetary Policy Committee established under sub-section (1) shall be composed o f the Governor, who shall be Chairman or in his absence, the Deputy Governor acting as Deputy Chairman, Deputy Governors and at least one non-executive Director. (5) The Monetary Policy Committee shall determine on the application o f the monetary policy set out by the Board and shall submit to the Board any major issues affecting the monetary' policy to take its stand. (6) The Monetary Policy Committee shall meet as often as may be necessary for the performance o f its functions and shall promptly submit to the Board a report o f its proceedii.^s at'cr each meeting by submitting the minutes o f the meeting. (7) The quorum at meetings o f the committee mentioned in subsection (5) shall be three • members one o f whom shall be the Chairman or in his absence, the Deputy Chairman. (8) Subject to the provisions o f this Art and to any directions given by the Board in that behalf, each committee established under subsection (1) shall keep minutes o f its meetings, reflecting its position on the issues raised and determined Management o; the Bank and powers o f the Governor and D eputy Governors
13
{ i ) Subject to the provisions o f this Act, the management o f the
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AI-assisted research summary: The Governor manages the Bank under Board policy, with limited powers to act, sign, represent, delegate, and authorize spending; Deputy Governors handle day-to-day management under the Governor, and the President may exempt transactions or activities from the office-holding restrictions.

13.-{ i ) Subject to the provisions o f this Act, the management o f the Bank and the direction o f its business and affairs is vested in the Governor and the Governor shall, in the exercise o f such functions and direction, conform with the policy and other decisions made by the Board. (2) The Governor shall, unless the Board determines otherwise, exercise powers, perform functions and execute duties o f the Bank, other than any function specifically conferred on the Board, and to authorize expenditure within the budget approved by the Board. (3) The Governor shall, subject to subsection (2), be the principal representative o f the Bank and shall, in that capacity: (a) represent the Bank in its relation with other institutions, including the Government; 128 No. 4 Bank o f Tanzania (b) represent the Bank, either personally or by a legal representative, in any legal proceedings to which the Bank is a party; (c) sign, solely or jointly with other persons, agreements concluded by the Bank, notes or securities issued by the Bank, reports, balance sheets and other financial statements, correspondence and other documents o f the Bank; and (d) delegate any authority provided for in this subsection, including the power o f delegation to any member o f the Board or other officers o f the Bank. (4) Each o f the Deputy Governors shall: (a) subject to t' e general supervision o f the Governor, be responsible for the day to day management o f business and affairs o f the Bank as determined by the Governor; (b) discharge such other duties as may be assigned to him from time to time by the Governor. (5) The Deouty Governor acting in the capacity o f Deputy Chairman shall have full powers to act for the Governor. (6) The exercise by the Deputy' Governor o f any function o f the Governor shall in the absence o f proof to the contrary, be deemed to be a valid exercise o f such function pursuant to subsection (5). (7) The Governor and the Deputy Governors shall, while in the service o f the Bank, work full time and shall not, while holding their respective offices, occupy or hold any other paid or unpaid office or employment or engage in any professional or private enterprises activities. (8) Nothing in subsection (7) shall prohibit the Governor or Deputy Governor: (a) becoming or acting as a governor, director or member o f the Board o f any international bank or monetary authority to which the Government have adhered or given support or approval; or (b) becoming or acting as a director o f any corporation in Tanzania which the Bank may, in pursuance to the provisions o f section No. 4 Bank o f Tanzania 2006 58, promote. (9) The President may, by order published in the Gazette, specifically exempt any transactions or activities from provisions o f subsections (7) and (8). (10) Duties and responsibilities o f each o f the Deputy Governors and such by-laws shall be published in the Gazette. Remune ration o f the Governor, Deputy Governors and members o f the Board
14
( 1) The salaries and allowances including retirement allowances
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AI-assisted research summary: The President sets the Governor’s and Deputy Governors’ salaries and allowances, while the Board sets its members’ fees and service terms with Ministerial approval. Those amounts and terms must not be reduced or diminished.

14.-( 1) The salaries and allowances including retirement allowances o f the Governor and the Deputy Governors shall be determined by the President. (2) The fees, allowances and other terms o f service o f the members o f the Board shall be determined by the Board on approval by the Minister. (3) The salaries, allowances, fees and other terms o f services offered under subsections (1) and (2) shall not be reduced or otherwise diminished. A ppoint ment o f officers and other staff o f the Bank
15
Provision
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AI-assisted research summary: The Governor is responsible for appointing, ending appointments, and disciplining Bank staff, subject to service terms and the Board’s prescribed establishment. The Board may also make staff provisions, including benefits for staff who die or retire and for their surviving dependants.

15.—(1) Subject to the general terms and conditions o f service and to the establishm ent prescribed by the Board, the G overnor shall be responsible for the appointment, termination o f appointment and discipline o f the staff o f the Bank. (2) The powers o f the Board to make provisions for the staff o f the Bank shall include power to provide for benefits for or in respect o f staff who die or retire and their surviving dependants. Secrecy
16
Section 16
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AI-assisted research summary: Board members and Bank staff must not disclose Bank-related information, except when performing their functions, when required by law, or when authorized by the Board.

16. Except for the purposes o f the performance o f his functions, when so required by law or authorized by the Board, no member o f the Board or staff o f the Bank shall disclose any information relating to the Bank or to any transaction or customer o f the Bank acquired in the course o f employment or the discharge o f his duties. Capital. reserves and accounts o f the Bank
17
( 1) The authorized capital o f the Bank shall be one hundred billion
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AI-assisted research summary: The Bank’s authorized capital is 100 billion shillings, and any increase must be determined by the Board and authorized by the Minister in a Gazette notice.

17.-( 1) The authorized capital o f the Bank shall be one hundred billion shillings, provided that it may be increased by such amount as may be determined by the Board, and authorized by the Minister, by Notice published in the Gazette. (2) The capital o f the Bank shall be subscribed and held only by the Government o f the United Republic. (3) The Bank may, having regard to the amount by which the value o f 1 3 0 No. 4 Bank o f Tanzania 2006 (3) The Board shall appoint or re-appoint a Head o f Internal Audit who shall be fully compliant with international audit standards, for a period o f three years as head o f the internal audit function who shall report to the Governor and to the Audit Committee and may report to the Board. (4) The function o f Internal Audit shall be fully compliant with international audit standards. (5) The Board and the Governor shall adopt a yearly audit work program and any audit and control operations to be pursued by the Head o f Internal Audit and may direct the Head o f Internal Audit to conduct reviews o f the implementation o f the decisions by the Board and any other review deemed necessary. (6) The annual external audit o f the Bank shall be perfomed by the Controller and Auditor General in accordance with international accounting and audit standards and in compliance with the Public Finance Act. Cap. 348
21
(1) The Bank shall publish and submit to the Minister within
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AI-assisted research summary: The Bank must publish and submit several reports and statements on a set timetable, and the Minister must pass some of them to the National Assembly.

21.—(1) The Bank shall publish and submit to the Minister within three months after the close o f each financial year and the Minister shall in turn submit to the National Assembly the B ank’s Annual Report comprising: Submission o f report to the National A ssem bly (a) a report o f the B ank’s operations and principal functions in particular its monetary policy and other activities throughout the year; and ' 11] 11. t (b) the Balance Sheet and the Profit and Loss Account, and associated financial statements as well as detailed notes to the accounts for the year and the previous y ear’s comparative data certified by the external auditor along with the external auditor’s opinion. (2) The Bank shall publish, within ten business days o f the subsequent month, a monthly aggregated balance sheet audited by the Head o f Internal Audit. (3) The Bank shall at intervals o f not more than six months after submission o f each preceding statement, publish and submit to the Minister the Monetary Policy Statement for the next six months or for such shorter period as may be specified by the Minister. (4) The Minister shall submit to the National Assembly the Statement 1 3 3 No. 4 Bank o f Tanzania 2006 submitted under the provisions o f subsection (3). (5) The Bank shall, at intervals o f not more than six months following the submission o f the initial report, publish and submit to the Minister progress reports on the implementation o f monetary policy and reports on the outlook for the future and the Minister shall in turn submit such reports to the National Assembly at its subsequent session. (6) The Monetary Policy Statement shall: (a) specify the policies and means by which the Bank intends to achieve its policy targets; (b) state the reasons for adopting those policies and means; (c) contain a statement o f how the Bank considers monetary policy to be formulated and implemented during the next twelve months; and (d) contain a review and assessment o f the implementation by the Bank of monetary policy duringthe period to which the preceding policy statement relates whereby the Bank shall describe the factors inside and outside its control that have affected the outcome o f m o n e t a r y p olicy. (7) In addition to the reports published by the Bank under the provisions o f this section, the Bank may issue such other publications, including the statements o f the Board on issues o f monetary policy as the Board considers to be in the public interest. Exemption from certain taxes
22
(1) The Bank shall be exempt from payment o f any taxes, levies
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AI-assisted research summary: The Bank is exempt from paying certain taxes, levies, duties, and stamp or other duties for specified bank property, activities, and currency-related instruments.

22.—(1) The Bank shall be exempt from payment o f any taxes, levies or duties in respect o f its profits, operations, capital, property' or documents or any transaction, deed, agreement or promissory note to which it is a party. Liquidation and W inding up o f the Bank. Cap 2121963 Decree By-laws (2) The Bank shall be exempt from the payment o f stamp or other duties in respect o f notes and coins issued as currency.
23
Section 23
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AI-assisted research summary: The Bank may be liquidated or wound up only under a procedure prescribed by an Act of Parliament, and the Companies Act and Companies Decree do not apply to that process.

23. The Bank shall only be placed in liquidation or wound up pursuant to the Procedure prescribed in an enactment o f Parliament but the provisions o f the Companies Act and the Companies Decree shall not apply in relation therewith.
24
(1) T he B oard m ay make by-law s for the good o rd e r and
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AI-assisted research summary: The Board may make by-laws for the Bank’s good order and management, and must make rules on travel expenses and out-of-pocket allowances for Board members and Bank staff.

24.—(1) T he B oard m ay make by-law s for the good o rd e r and management o f the Bank. 134 No. 4 Bank o f Tanzania 2006 (2) The Board shall make rules regulating travel expenses and out of pocket allowances applicable to members o f the Board and o f the staff o f the Bank incurred in discharging their duties. By-laws (3) By-laws made pursuant to subsection (1) and Rules under subsection (2) may not be published in the Gazette. J UflB . PART III C u r r e n c y vt. ■•{? r>t / i . l q o ' m vi ilt I d

Part

PART III

15
Appointm ent o f officers and other sta ff o f the Bank
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AI-assisted research summary: This provision is about appointing the Bank’s officers and other staff.

15. Appointm ent o f officers and other sta ff o f the Bank.
16
Secrecy
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AI-assisted research summary: Section 16 is titled “Secrecy” and appears to relate to capital reserves and accounts, but the rule text is truncated.

16. Secrecy 1'/. Capital reserves and accounts o f the B
18
General Reserve Fund, etc, and aP nation o f profits
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AI-assisted research summary: Section 18 is titled “General Reserve Fund, etc, and aP nation o f profits.”

18. General Reserve Fund, etc, and aP nation o f profits.
19
Losses charged on C onsolidated F .id
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AI-assisted research summary: Section 19 is titled “Losses charged on Consolidated Fund.”

19. Losses charged on C onsolidated F .id.
21
Submission o f report to the N ational Assembly
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AI-assisted research summary: Section 21 concerns submission of a report to the National Assembly.

21. Submission o f report to the N ational Assembly.
23
Liquidation and W inding up o f the Bank
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AI-assisted research summary: This section is titled “Liquidation and Winding up of the Bank.”

23. Liquidation and W inding up o f the Bank.
24
By-laws.25. C urrency and its issue
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AI-assisted research summary: A heading referring to by-laws and the issue of currency.

24. By-laws.25. C urrency and its issue.
30
Destruction o f coins and notes
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AI-assisted research summary: Section 30 is titled “Destruction of coins and notes.”

30. Destruction o f coins and notes. PART IV O t h e r O p e r a t i o n s o f t h e B a n k
25
The unit o f currency in Tanzania shall be the shilling each o f
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AI-assisted research summary: Tanzania’s unit of currency is the shilling, and each shilling is divided into 100 cents.

25. The unit o f currency in Tanzania shall be the shilling each o f which shall be divided into Oiie hundred cents.
26
The Bank shall have the sole right to issue bank notes and coins in
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AI-assisted research summary: The Bank has the sole right to issue bank notes and coins in Tanzania, and those notes and coins are the only legal tender in Tanzania.

26. The Bank shall have the sole right to issue bank notes and coins in and for Tanzania which shall be the only legal tender in Tanzania.
27
< 1) B anknotes and coins shall be
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AI-assisted research summary: The Bank must publish notice in the Gazette about banknote and coin denominations and other characteristics before they are circulated for use.

27.—< 1) B anknotes and coins shall be ta) in such denominations o f the shilling or fractions thereof expressed in cents; and (b) o f such materials, forms and designs, shall bear such inscriptions, devices and have such other characteristics, as the Bank shall with the approval o f the Minister, determine. C urrency and its issue Issuance o f bank notes and coins Notification o f notes and coins (2) The Bank shall give notice in the Gazette o f the denominations and other characteristics o f the bank notes and coins before they are circulated for use.
28
( 1) Subject to the provisions o f this section
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AI-assisted research summary: Bank notes and specified coins are legal tender at face value, and the Bank may call in its notes or coins after giving reasonable notice in the Gazette.

28.-( 1) Subject to the provisions o f this section- Legal tender (a) bank notes shall be legal tender at their face value for the payment o f any amount; (b) coins shall be legal tender at their face value: (i) in the case o f a shilling, or any multiple o f a shilling, for the payment o f any amount; (ii) in the case o f coins having a face value o f fifty cents or 13 5 No. 4 Bank o f Tanzania 2006 below, for the payment o f any amount not exceeding five hundred shillings. (2) Subject to section 29, the Bank shall have power, on giving reasonable notice in the Gazette, to call in any notes or coins issued by it on payment o f the face value thereof. (3) Any notes or coins with respect to which a notice shall have been given under this section shall, on the expiration o f such notice, cease to be legal tender. (4) Nothing in this section shall be construed as precluding the Bank from making payment for any notes or coins called in accordance with subsection (3) which are delivered to the Bank after they have ceased to be legal tender. Lost and damaged currency
29
{1) N o person shall be entitled to recover from the Bank the
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AI-assisted research summary: People cannot recover from the Bank the value of lost, stolen, imperfect, mutilated, or tampered bank notes or coins, but the Bank may choose to award or refund value in its discretion.

29.—{1) N o person shall be entitled to recover from the Bank the value o f any lost, stolen or imperfect bank note or coin, or o f any bank note that has been mutilated or o f any coin that has been tampered with. J l i i . i / I ! . (2) Without prejudice to subsection (1), the Bank may decide on any value that may be awarded to any person who present to the Bank a bank note which is the subject o f any events referred to in subsection ( 1). (3) The circumstanccs in which and the conditions and limitations upon which, the value o f any lost, stolen or imperfect notes or coins, mutilated notes or coins which have been tampered with may be refunded as o f grace by the Bank shall be within the absolute discretion o f the Bank. (4) For the purposes o f this section, a coin shall be deemed to have been tampered with if the coin has been impaired, diminished or lightened otherwise than by fair wear and tear, or has been defaced by stamping, engraving or piercing whether or not it has been diminished or lightened. •fsrir D estruc tion o f coins and notes
30
Section 30
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AI-assisted research summary: The Bank may melt down, break up, or deface coins, and may deface or destroy bank notes that have been called in or tampered with.

30. The Bank may melt down, break up or deface any coin and may deface or destroy any bank note which has been called in or tampered with. PART IV O t h e r O p e r a t io n s o f t h e B a n k

Part

PART IV

31
The Bank as banker to the Governm ents and other public authorities
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AI-assisted research summary: This section is titled “The Bank as banker to the Government and other public authorities.”

31. The Bank as banker to the Governm ents and other public authorities.
32
Functions as banker and fiscal agent
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AI-assisted research summary: This section states that the subject functions as banker and fiscal agent.

32. Functions as banker and fiscal agent.
33
Bank fee
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AI-assisted research summary: This provision is titled “Bank fee.”

33. Bank fee. 34 Direct advances and other short term credit to the Government* , etc. tc.
35
Operation in G overnm ent securities,
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AI-assisted research summary: This section is titled “Operation in Government securities.”

35. Operation in G overnm ent securities,
36
M eaning o f annual budgeted revenue
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AI-assisted research summary: This provision is about the meaning of annual budgeted revenue.

36. M eaning o f annual budgeted revenue.
37
Prohibition o f other credit to Goverr nents, etc
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AI-assisted research summary: This section concerns a prohibition on other credit to governments, etc.

37. Prohibition o f other credit to Goverr nents, etc.
38
Financial relations with other banks
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AI-assisted research summary: Section 38 is titled “Financial relations with other banks.”

38. Financial relations with other banks.
43
Bank may purchase, hold and sell securities
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AI-assisted research summary: The bank may purchase, hold, and sell securities.

43. Bank may purchase, hold and sell securities.
46
Submission and publication o f information
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AI-assisted research summary: Section 46 concerns the submission and publication of information.

46. Submission and publication o f information.
47
Power to conduct exam inations o f banks or financial institutions
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AI-assisted research summary: This section is about a power to conduct examinations of banks or financial institutions.

47. Power to conduct exam inations o f banks or financial institutions. 1 1 6 No. 4 Bank o f Tanzania 2006
50
External reserves, gold and foreign exchange
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AI-assisted research summary: Section 50 is titled “External reserves, gold and foreign exchange.”

50. External reserves, gold and foreign exchange.
52
Dealing in gold and foreign currencies
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AI-assisted research summary: This section is about dealing in gold and foreign currencies.

52. Dealing in gold and foreign currencies.
55
Fiscal and depository for G overnm ent’s transactions, etc
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AI-assisted research summary: Section 55 is titled “Fiscal and depository for Government’s transactions, etc.”

55. Fiscal and depository for G overnm ent’s transactions, etc.
57
Relations with private enterprises, organizations and bodies
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AI-assisted research summary: Section 57 is titled “Relations with private enterprises, organizations and bodies.”

57. Relations with private enterprises, organizations and bodies.
59
Interest on deposit balanc es and blocked accounts
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AI-assisted research summary: This section is about interest on deposit balances and blocked accounts.

59. Interest on deposit balanc es and blocked accounts.
61
Prohibited operations
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AI-assisted research summary: This section is titled “Prohibited operations.”

61. Prohibited operations. PART V M i s c e l l a n e o u s P r o v i s i o n s
31
( 1) The Bank shall be the banker, and shall act as the fiscal agent
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AI-assisted research summary: The Bank must be the banker and fiscal agent of the Governments, and it may do the same for any public authority if arrangements are made with the relevant authority.

31.-( 1) The Bank shall be the banker, and shall act as the fiscal agent o f the Governments. The Bank as banker to the Govern ments and other public authorities 1 3 6 No. 4 Bank o f Tanzania 2006 (2) The Bank may, subject to such arrangements as may be made with the authority concerned, act as banker and fiscal agent for any public authority.
32
(1) The Bank, in its capacity as a banker and fiscal agent o f the
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AI-assisted research summary: The Bank may act as official depository and fiscal agent for governments or public authorities, and may also select another bank for that role after consultation.

32.—(1) The Bank, in its capacity as a banker and fiscal agent o f the Governments or o f any public authority, may be the official depository o f the Governments or public authority concerned and accept deposits and effect payments for the account o f the Governments or public authority. F unctions as banker and fiscal agent .< CJ (2) W ithout p reju dice to su bsec tio n (1), the B ank may, after consultation with the Governments or the public authority and the bank concerned, select any other bank to be the official depository o f the Governments or the public authority and shall, in respect therewith: />'• ' (a) maintain and operate special official accounts in accordance with arrangements made between the Bank and the Governments or public authority concerned; (b) act as agent o f the Governments for servicing the public debt, including the issuance o f paym ent o f interest on and the redemption o f bonds and other securities o f the Governments; (c) pay, remit, collect or accept for deposit or custody funds in T a n z a n ia o r ab r o a d ; r\ (d) purchase, sell, transfer or accept for custody cheques, bills o f exchange and other securities; (e) collect the proceeds, whether principal or interest, resulting from the sale for, accruing to the interest of, the Government or public authority o f securities or other property; and (f) purchase, sell, transfer or accept for custody gold or foreign exchange.
33
Section 33
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AI-assisted research summary: The Bank may charge fees for its services and may make short-term advances to the Governments, buy and sell Treasury bills, and set the related rates and interest terms.

33. The Bank may charge fee for its services as banker or fiscal agent Bank fee o f the Governments at such rates, on cost recovery basis, as the Bank shall determine. 3 4.-( 1) Subject to the provisions o f this section, the Bank m ay - (a) make direct advances to the Governments for the purposes o f Direct adv ances and other short term credit to the G overn m ents, etc No. 4 Bank o f Tanzania 2006 offsetting fluctuations between receipts from the budgeted revenues and payment o f the Governments; and 2< t5’ (b) purchase, hold and sell Treasury bills issued by the Governments which mature not later than twelve months from the date o f issue. c % Operation in Gove rnment securities, etc. (2) Each advance made to the Governments under this section shall- (a) be m ad e s o lely fo r the p urp ose o f p ro v id in g te m p o ra ry accommodation to the Governments and shall, accordingly, be repayable within one hundred and eighty days; and (b) bear interest at market rates as determined by the Bank. .1 L». !
35
(1) Subject to the provisions o f this section, the Bank may, for
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AI-assisted research summary: The Bank may buy, hold, and sell certain government securities to offset revenue-payment fluctuations, but the total amount it holds and related advances must not exceed one eighth of average budgeted revenues.

35.—(1) Subject to the provisions o f this section, the Bank may, for the purpose o f offsetting fluctuations between receipts from the budgeted revenues and payment o f the Governments, purchase, hold and sell negotiable stocks, bonds or similar debt obligations or other securities issued by the Governments which shall bear interest at such market rate as determined by the Bank and which mature not later than twelve months fr#m the date o f issue. (2) The total amount outstanding at any time o f advances made and the Treasury bills and other securities held by the Bank under this section and section 34 shall not exceed one eighth of the average budgeted revenues o f each o f Governments as defined in section 36. M eaning o f annual budgeted revenue
36
(1) For the purposes o f section 35 the average budgeted revenues
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AI-assisted research summary: For section 35, the Governments’ average budgeted revenues are calculated as the average of the actual collected revenues from the previous three fiscal years.

36.—(1) For the purposes o f section 35 the average budgeted revenues o f the Governments shall be the average o f the actual collected revenues o f the previous three fiscal years. (2) Collected revenues shall include taxes, levies, duties, fees, profits and income from any investment or undertaking and any contribution to the revenue o f the Governments from any political sub-division o f the United Republic, excluding loans, grants and other forms o f economic aid and all borrowing whether o f short or long term.
37
Section 37
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AI-assisted research summary: The Bank must not extend credit directly or indirectly to Governments or any public authority, except where sections 34 and 35 allow it. The Bank may also provide banking services to banks and financial institutions.

37. Except as provided in sections 34 and 35, the Bank shall not Prohibition o f other credit to Gover nm ents, etc. 138 ^ * No. 4 Bank o f Tanzania 2006 extend any credit directly or indirectly to the Governments or any public authority. , 38.—(1) The Bank may open accounts, accept deposits and collect money and other monetary claims for and on account o f banks and financial institutions and may generally act as a banker to such banks and financial institutions. Financial relations with other banks (2) Subject to the provisions o f this Act, the Bank may provide additional services to banks and financial institutions, including interbank clearings and the provision o f safe deposit facilities.
39
Provision
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AI-assisted research summary: The Bank may buy, sell, and rediscount certain credit instruments for banks, and it must set limits on access to rediscount facilities.

39.—(1) The Bank may, on such terms and conditions as it may prescribe, purchase, sell and rediscount on behalf o f banks, bills o f exchange, promissory notes and other credit instruments so long as such instruments bear the endorsement or acceptance o f a bank, and matures within one hundred and eighty days from the date o f acquisition or rediscount by the Bank. Re-dis co unts, etc. (2) The Bank shall set limits o f access to the rediscount facilities.
40
Provision
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AI-assisted research summary: The Bank may grant loans and advances to banks and financial institutions for up to three months, subject to terms it prescribes and acceptable collateral.

40.—(1) The Bank may, on such terms and conditions as it may prescribe, grant loans and advances to banks and financial institutions for a period not exceeding three months against the collateral of: Loans and advances (a) credit instruments satisfying the requirements o f section 39; (b) Treasury bills satisfying the requirements o f section 39; or (c) other credit instruments or securities prescribed by the Bank; (2) For the purposes o f this section the word “financial institution” shall include the Deposit Insurance Fund established under the law regulating banks and financial institutions in the United Republic.
41
Section 41
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AI-assisted research summary: The Bank may act as lender of last resort for solvent but illiquid banks and financial institutions in Tanzania, subject to stated conditions and approvals.

41. The Bank shall be a lender o f last resort and shall in that respect at penal interest rates published each year, grant advances or contingent commitments on an exceptional basis, to banks and financial institutions in Tanzania, that are deemed to be solvent but illiquid if: / (a) in the opinion o f the Board, such advance or commitment is 139 Bank as a lender o f last resort No. 4 Bank o f Tanzania 2006 necessary having regard to the financial condition o f the bank or the financial institution and to its systemic significance to the stability in the financial market; and (b) in the opinion o f the Bank, the bank is solvent and provides adequate collateral and the request for financial assistance is based on the need to improve liquidity; or ■ £ aou (c) available collateral is insufficient and the Minister has on behalf o f the Governm ent concurred in writing on the advance or commitment proposed by the Bank to that effect; (d) the Minister on behalf o f the Government, has confirmed in writing that separate funds or debt securities in bearer form with interest at market rates will be made available to the Bank by the G o v e rn m en ts to cov er the advance or full am ount o f the commitment given in the event that it is realized; and (e) the Bank approves upon consent o f the Board, each loan and each guarantee or other contingent commitment o f the Bank or the benefit o f a bank or other financial institution pursuant to this section. Bank not to extend credit ’irnrf.i? ' * 1 ^
42
( 1) Except as provided in sections 39, 40 and 41, the Bank shall
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AI-assisted research summary: The Bank must not extend credit to banks and financial institutions, except as allowed by sections 39, 40 and 41. It must also determine and publish interest rates for rediscounting instruments and for loans or advances to those institutions, and it may buy, hold, and sell securities.

42.-( 1) Except as provided in sections 39, 40 and 41, the Bank shall not extend credit directly or indirectly to banks and financial institutions. ? •• sf :?,rii lpi\* (2) The Bank shall determine and publish the rates o f interest for rediscounting instruments and for granting loans or advances to banks and financial institutions. Bank may purchase, hold and sell securities
43
(1) For monetary policy purposes, the Bank may purchase, hold
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AI-assisted research summary: The Bank may buy, hold, and sell certain government or local-authority securities for monetary policy purposes, but it cannot use those purchases to finance a government budget deficit and must use the secondary market at market rates. It may also buy and sell its own negotiable debt securities.

43.—(1) For monetary policy purposes, the Bank may purchase, hold and sell securities issued by any o f the Governments or by any authority for a political sub-division o f the United Republic, but such purchases shall not be made to finance any Government budget deficit o f either o f the Governments and shall be made on the secondary market at market rates. (2) securities. The Bank may equally purchase and sell its own negotiable debt 1 4 0 2006 Control ofb an k in g activities No. 4 Bank o f Tanzania
44
( 1) Subject to the provisions o f this section, the Bank may require
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AI-assisted research summary: The Bank may require banks and financial institutions to keep minimum cash reserves and can set how they are calculated and held; it must also give at least 30 days’ notice before a requirement or ratio increase takes effect.

44.-( 1) Subject to the provisions o f this section, the Bank may require banks and financial institutions to maintain minimum cash balances with the Bank as reserves against the deposit and other liabilities o f the banks and financial institutions and may, in that respect, prescribe the currency or the currencies in which such balances shall be held. (2) The Bank may prescribe different ratios for different kinds o f deposits and other liabilities and may prescribe the methods o f computing the amount o f the reserves which ratios and methods shall apply uniformly to all banks and financial institutions and may exclude certain liabilities from this calculation. r‘ r n n O o r h y <.oi i^ , h r • „ (3) Any requirement or increase in the ratios shall take effect on the expiration of at least thirty days notice to the banks and financial institutions. (4) The Bank shall impose on any bank or financial institution that fails to maintain the minimum balances required under this section a daily penalty charge on the amount o f the deficiency o f greater than o f 0.2 per centum or three times the average yearly lending rate o f such bank or such financial institution divided by 360, and such charge may be recovered by deduction from any balance of, or money owing to the bank or financial institution concerned or recovered as civil debt. 45 Every bank or financial institution shall maintain liquid assets at levels prescribed by the Bank in accordance with the provisions o f the Banking and Financial Institutions Act, 2006.
46
(1) Every bank or financial institution and anyaffiliate shall furnish
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AI-assisted research summary: Banks, financial institutions, and their affiliates must give the Bank information it requires, in the form and timing the Bank prescribes.

46.—(1) Every bank or financial institution and anyaffiliate shall furnish to the Bank, at such time and in such m anner as may be prescribed by the Bank, such information as the Bank may require for the proper discharge o f its functions and responsibilities under this Act. Liquid a s se ts ratio • j f l S J / . j iibau Submission and publica tion o f informa tion (2) Where any bank or financial institution contravenes or fails to comply with any requirement of this section, the bank or financial institution concerned and every officer who is in default shall be liable on conviction to a default fine stipulated under section 66 o f the Banking and Financial Institutions Act, 2006. 4 7 . - ( l ) Notwithstanding any provision to the contrary contained in any written law, the Bank shall have power to access to any oral and documented information, including information in computers, books, Pow er to co n d u ct examina tions o f banks or financial institutions 141 No. 4 Bank o f Tanzania 2006 minutes, accounts, cash securities, documents, vouchers as well as any other things in the possession or custody or under the control o f a bank or financial institution or its affiliate, which relate to the business oi’such bank or financial institution. (2) The Bank may carry out, at such times as it may consider necessary, an examination o f any bank or financial institution in accordance with the provisions o f the Banking and Financial Institutions Act, 2006. Credit reference system
48
(1) The Bank shall create a credit reference system designed to
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AI-assisted research summary: The Bank must create and run a credit reference system, and banks and financial institutions must report customer credit information to it.

48.—(1) The Bank shall create a credit reference system designed to collect and provide information on the payment record o f the clients of all banks and financial institutions, savings and credit schemes and other entities engaged in a regular basis in the extension o f credit within the United Republic. (2) The credit reference system shall consist o f a credit reference databank administered by the Bank and private credit reference bureaus operating under the conditions prescribed by the Bank. ( 3 ) A ll b a n k s a n d f in a n c ia l institutions shall, having ascertained the proper identity o f their customers, individuals as well as representatives o f customers that are legal entities, report to the credit reference databank detailed information about all credit facilities extended to each client, in the format and with the frequency as the Bank may prescribe. (4) The Bank shall have and exercise powers to mandate a standardized method or technology for the assignment o f a unique identification number to each client by all banks and financial institutions. (5) The information received from banks and financial institutions shall be consolidated by the Bank with a view to determining, at a minimum, the total indebtedness and payment performance o f each clieni and may provide to each reporting institution for internal control and monitoring purposes. (6) The Bank may require banks and financial institutions report to the credit reference databank other information relevant to their clients’ operations including, but not limited to, information on electronic payment instruments and cheques that are returned or refused for lack o f funds, fraud or any other information required by the credit reference databank. 142 No. 4 Bank o f Tanzania 2006 (7) The Bank may require any savings and credit institution or scheme and any other entity engaged in the extension o f credit to report any information required by the credit reference databank. (8) I r i a n k shall have and exercise powers to license and regulate operations o f private credit reference bureaux that access information from the credit reference databank. (9) All clients o f institutions providing information to the Bank shall execute a written consent to such institutions to obtain from, exchange with or disc lose all information relating to the clients to banks, financial institutions or credit reference bureaux. (10) The information so collected, exchanged with or disclosed to banks, financial institutions or credit reference bureaux shall be used only for the purpose o f verifying accuracy o f the information, conducting credit investigations and executing and performing long or credit agreement. , . Administra tive p enalty
49
( 1) Where any private credit reference bureau is found involved
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AI-assisted research summary: The Bank may fine a private credit reference bureau or withdraw its licence if it seriously or repeatedly breaches consumer protection rules or gives incorrect required information. Banks and financial institutions may request credit record information, but they must also ensure written loan applications are signed and kept for the Bank’s review.

49.-( 1) Where any private credit reference bureau is found involved in gross or repeated violation o f consumer protection regulations or fails to furnish correct information that may be required by the credit reference databank, the Bank may impose on the private credit reference bureau a penalty charge o f not less than five hundred thousand shillings for every day during which the non-compliance continues or withdraws its licence. i u IlB• - lO (2) The Bank may use the credit reference databank to monitor the credit activities o f any individual institution and the credit market for purposes o f publication o f periodical information. (3) All banks and financial institutions may request information from the credit reference databank or a credit information bureau regarding payment record o f all prospective clients, and in relation therewith banks and financial institutions shall observe that all written loan applications are signed by every prospective client and filed for review by the Bank in the course o f periodic examinations.
5Q
{ 1) The Bank shall, subject to the provisions o f this Act, formulate,
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AI-assisted research summary: The Bank must formulate, determine, and implement exchange rate policy in the United Republic, subject to this Act.

5Q.-{ 1) The Bank shall, subject to the provisions o f this Act, formulate, determine and implement the exchange rate policy in the United Republic with a view to attaining its primary monetary objective stated in section
7
Section 7
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AI-assisted research summary: The Governor must consult the Minister about exchange rate policy and any major draft decision on it, with reasons.

7. External reserves, gold and foreign exchange (2) In order to ensure a smooth and effective coordination with the Governm ent’s economic policy, the Governor shall consult with the 14 3 No. 4 _________________. Bank o f Tanzania________________________2006 M inister on the exchange rate policy and on any m ajor draft decision on the exchange rate policy with reasons thereon. Reserve o f external a sse ts
51
(1) The Bank shall at all times use best endeavours to m aintain a
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AI-assisted research summary: The Bank must keep external reserves at least equal to four months of imports and international transaction needs, and may deal in gold, foreign currency, and certain reserve assets under stated conditions.

51.—(1) The Bank shall at all times use best endeavours to m aintain a reserve o f external assets at a level which is, at m inim um equal to four m onths im ports requirem ents and the requirem ents o f international transactions o f the United Republic for the same period o f time. <3 , r o l o c ' v (2) Subject to the provisions o f subsection (4), the reserve o f external assets shall consist o f any or all o f the following: <rt (a) gold; b I rj j q i '> ns ( d j. . (b) foreign exchange in the form of: (i) dem and or tim e deposits with foreign central banks or with the B ank’s agents or correspondent abroad; (ii) docum ents and instrum ents custom arily used for the m aking o f paym ents or transfers in international transactions; (iii) notes or coins; and (c) securities or guarantees by foreign governm ents or international institutions and organizations. (3) T he Bank shall from tim e to time determ ine the type and form o f foreign exchange and the kinds o f securities which may be held in the reserve o f external assets. (4) T he B ank m ay include in its reserve o f external assets any internationally recognized reserve assets being a reserve asset not referred to in subsection (2), including: Ar- '• - „ (a) the reserve position o f the United Republic in the International M onetary Fund; and 144 No. 4 Bank o f Tanzania 2006 •'■-1323*: Dealing in gold and foreign currencies (b) holdings and special drawing rights o f the United Republic, which the Bank, after consultation with the International M onetary Fund considers suitable for inclusion in the reserve. i 5 2 .-( 1) Subject to the provisions o f this section, the Bank may: ( bns i L \i • (a) import, export, buy, sell, hold or otherw ise deal in gold; (b) acquire and transfer balances in foreign currencies, hold such balances with foreign central banks or with the B ank’s agents or correspondents abroad, and invest such balances in m arketable foreign securities; and (c) acquire, hold, transfer, and effect transactions o f any kind in foreign exchange. (2) The Bank may engage in foreign exchange transactions only w ith- (a) banks and financial institutions; (b) the Governm ents; (c) a public authority; y/OT* • ' ) K ‘ (d) foreign central banks, foreign banks or foreign financial institutions; (e) foreign governm ents or agencies o f foreign governments; (0 international financial organisations or institutions; and (g) any other person the Bank may prescribe by Notice in the Gazette. (3) The buying and selling rates in transactions authorized by this section shall be in accordance with international agreements to which the United Republic is a party or to which the United Republic is associated. * n h * ) j ! 1 4 5 No. 4 Exchange control Paym ents agreements Fiscal and deposi tory for Govern m ent’s transactions, etc. Miscellane ous powers and functions Bank o f Tanzania 2006
53
The Bank shall perform such functions in the adm inistration o f
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AI-assisted research summary: The Bank must carry out functions that support administering laws controlling foreign exchange and gold transactions.

53. The Bank shall perform such functions in the adm inistration o f any law relating to the control o f the import, export, purchase, sale or other transaction in foreign exchange and gold as may be stipulated thereof.
54
The Bank shall adm inister any paym ents agreem ent entered into
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AI-assisted research summary: The Bank must administer any payments agreement entered into by the Governments.

54. The Bank shall adm inister any paym ents agreem ent entered into by the G overnm ents.
55
The B ank shall be the fiscal agent for all the G ov ernm ents’
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AI-assisted research summary: The Bank must act as fiscal agent for the Governments’ transactions with certain international financial organizations or institutions.

55. The B ank shall be the fiscal agent for all the G ov ernm ents’ transactions w ith international financial organizations or institutions o f w hich the G overnm ent o f the U n ite d R e p u b lic is a m e m b e r .
56
(1) The Bank may open accounts for, accept deposit from, and
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AI-assisted research summary: The Bank may provide banking services to foreign central banks, foreign banks, and foreign financial institutions, and certain information requests and penalties apply under section 57.

56.—(1) The Bank may open accounts for, accept deposit from, and collect m oney and other m onetary claim s for and on account of, foreign central banks, foreign banks and foreign financial institutions and may generally act as banker to such banks and institutions. (2) A ny foreign currency reserves held on deposit or m anaged by the Bank shall be immune from any legal proceedings including an order for execution, attachm ent or any other sim ilar process issued by any court for enforcing paym ent by the Bank in relation to such foreign currency reserves. Relations with private enterprises, organiza tions and bodies 5 7 .-(l)T h e Bank shall, for the purposes o f compilation and publication o f the balance o f paym ents statistics m eeting international standards, com pile inform ation from public offices and from banks and financial institutions and, to the extent strictly necessary, from private enterprises, organizations and bodies. (2) Public offices, banks and financial institutions shall, at a request by the Bank, provide any inform ation the Bank considers necessary for com pilation o f any monetary, financial or other statistics on the financial sector. (3) Any private enterprise, organization and body shall, at a request o f the Bank, provide any inform ation the Bank considers necessary for the com pilation o f the balance o f paym ents statistics. (4) W here any bank or financial institution fails to com ply with any requirem ent o f this section, the Bank may impose on the relevant bank or financial institution a penalty o f not exceeding five hundred thousand shillings for every day during which non-compliance continues and such charge may be recovered by deduction from any balance of, or m oneys 1 4 6 No. 4 Bank o f Tanzania owing to, the bank or financial institution concerned or by institution o f a suit. (5) Any private enterprise, organization or body that fails to com ply with a requirem ent by the Bank m ade pursuant to the provisions o f subsection (3) shall be subject to a penalty not exceeding one hundred thousand shillings for every day during which non-compliance continues.
58
( 1) Subject to subsection (2), the Bank may, in order to effectively
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AI-assisted research summary: The Bank may buy, hold, and sell shares or acquire an interest in certain corporations, but its total holding must not exceed 50% of the Bank’s paid-up capital plus General Reserve Fund.

58.-( 1) Subject to subsection (2), the Bank may, in order to effectively promote the functions o f the Bank, subscribe to, hold, and sell shares or acquire an interest in any corporation established for the purposes o f prom oting the developm ent o f financial m arkets or o f im proving the financial m achinery and paym ent system s in the United Republic. Relations with co rp o rations (2) The total value o f the B ank’s holding o f any shares or interest shall not at any time exceed fifty percent o f the aggregate o f the B ank’s paid up capital and o f its General R eserve Fund.
59
(1) On m inim um cash balances required, the Bank may not pay
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AI-assisted research summary: The Bank must not pay interest on required minimum cash balances, but it may pay market-rate interest on blocked-account balances if circumstances make that desirable and prudent and subject to any qualification it determines.

59.—(1) On m inim um cash balances required, the Bank may not pay interest on such balances deposited with the Bank. (2) The Bank may, where circum stances render it desirable and prudent so to do, pay interest at m arket rate, and subject to such q u a l if ic a tio n as it may determ ine, on the balances in any am ount with the Bank which is a blocked account within the m eaning o f the prevailing foreign exchange regulations.
60
< 1) The Bank shall advise the G overnm ents when in the B ank’s
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AI-assisted research summary: The Bank must advise the Governments in certain matters, and the Governments may seek the Bank’s opinion and advice on budget, financial legislation, and related matters.

60.—< 1) The Bank shall advise the G overnm ents when in the B ank’s opinion, any matter relating to its functions, powers and duties is likely to affect the fiscal policy and the nation al econom ic grow th o r the achievem ent o f the principal objectives o f the Bank. (2) T he G o v e rn m e n ts m ay seek o p in io n and ad v ice on d ra ft Governm ents’ budget, financial legislation and any other matter affecting the functions, powers and duties o f the Bank or any proposals, m easures or transactions relating thereto, and the Bank shall give the advice accordingly. Interest on dep osit balances and blocked acco u n ts A dvice to Governme nts
61
( I ) The Bank shall n ot
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AI-assisted research summary: The Bank is prohibited from trading, dealing in certain property interests, or guaranteeing loans and investments except as allowed by the Act; if it acquires an interest in the listed case, it must dispose of it promptly.

61.—( I ) The Bank shall n ot- Prohibited operations 147 No. 4 Bank o f Tanzania 2006 (a) save as expressly authorized by this Act, engage in trade, own or acquire any direct interest in any commercial, agricultural, industrial or similar undertaking except in the course o f obtaining satisfaction for any debt due to the Bank; (b) purchase, acquire or lease im movable property for any purpose except as prem ises for the Bank (including reasonable provision for anticipated future requirem ents) or for the use by m em bers o f the Board or its staff; (c) guarantee any loan, advance or investm ent unless expressly authorized by this Act. (2) W here, in the case provided in paragraph (a) o f sub-section (1), the Bank acquires any interest it shall dispose o f the same at the earliest suitable opportunity. PART V M i s c e l l a n e o u s P r o v i s i o n s

Part

PART V

64
Banks, etc. deem ed to be public service for certain purposes
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AI-assisted research summary: Banks and related entities are treated as public service for certain purposes.

64. Banks, etc. deem ed to be public service for certain purposes.
65
Immunity o f m em bers o f the Board, staff and em ployees o f the
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AI-assisted research summary: This section is about immunity for members of the Board, staff, and employees of the Bank.

65. Immunity o f m em bers o f the Board, staff and em ployees o f the Bank.
67
Immunity o f the assets m anaged by the Bank
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AI-assisted research summary: This section is titled “Immunity of the assets managed by the Bank.”

67. Immunity o f the assets m anaged by the Bank.
71
Repeal and savings
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AI-assisted research summary: This section is titled “Repeal and savings.”

71. Repeal and savings. 1 1 7 No. 4 Bank o f Tanzania 2006 No. 4 o f 2006 i A s s e n t J a k a y a M. K i k w e t e President 7th June, 2006 A n A c t to p ro v id e f o r m o re re s p o n s iv e re g u la to ry ro le o f the B a n k o f T a n z a n ia in re la tio n to the fo r m u la t io n a n d im p le m e n ta tio n o f m o n e ta ry p o lic y ; to p ro v id e fo r the s u p e rv is io n o f b a n k s a n d fin a n c ia l in s titu tio n s a n d to p ro v id e fo r o th e r re la te d m a tte rs . E n a c t e d by the Parliam ent o f the United Republic o f Tanzania. PA R TI P r e l i m i n a r y P r o v i s i o n s
1
( l ) This Act may be cited as the Bank o f Tanzania Act, 2006
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AI-assisted research summary: This section gives the Act’s short title and says it starts on a date appointed by the Minister in the Gazette.

1 .- ( l ) This Act may be cited as the Bank o f Tanzania Act, 2006. Short title and comme- ( 2 ) This Act shall com e into operation on such date as the M inister ncem ent shall, by notice published in the Gazette, appoint. This Act shall apply to M ainland Tanzania as well as to Tanzania Application
3
In this Act, unless the context requires oth erw ise
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AI-assisted research summary: This section defines key terms used in the Act.

3. In this Act, unless the context requires oth erw ise- interepreta- tion 1 1 9 No. 4 Bank o f Tanzania 2006 “Act” means the Bank o f Tanzania Act, 2006; “ Bank” means the Bank o f Tanzania referred to under section 4(1) o f this Act; “ bank” means an entity that is engaged in the banking business; “banking business”means the business o f receiving funds from the general public through the acceptance o f deposits payable upon demand or after a fixed period or after notice, or any similar operation through the frequent sale or placement o f bonds, certificates, notes or other securities, and to use such funds, in whole or in part, for loans or investments for the account o f and at the risk o f the person doing such business; “ Board” means the Board o f Directors o f the Bank established by section 9 o f the Act; “credit reference bureau” means an entity specialized in the collection and sale o f credit perform ance information for individuals and companies; “credit reference databank” means a computerized mechanism created by the Bank to receive and supply information to banks, financial institutions, credit reference bureaus and other institutions authorized by the Bank, regarding the credit transactions o f customers, including their off-balance sheet operations; “clearing system” means a set o f procedures whereby banks or financial institutions present and exchange data or documents relating to funds or securities transfer to other financial institutions at a clearing house and includes a mechanism for the calculation o f participants’ bilateral or multilateral net positions with a view to facilitating the settlement o f their obligations on a net or gross basis; “ Director” means a member o f the Board other than the Governor or the Deputy Governors; “ Deputy Governor” means a Deputy Governor appointed under sectior 8(3); “ex-officio member” means a member o f the Board who attends a meeting by virtue o f his position; “financial institutio 1” means an entity engaged in the business o f banking, but limited as to size, locations served, or permitted activities, as prescribed by the Bank or required by the terms and conditions o f ‘us licence; “ foreign exchange” means currencies and units o f accounts other than the currency o f the United Republic, and claims in and to such currencies and units o f accounts; “Government” means the Government o f the United Republic; “Governm ents” means the Government o f the United Republic and the Revolutionary Government o f Zanzibar: “Governor” means a Governor o f the Bank appointed under section 1 2 0 No. 4 Bank o f Tanzania 2006 8( 1); “member” in relation to the Board means a member o f the Board o f Directors; “ M inister” means, except where otherwise specified, the Minister responsible for financial matters o f the United Republic; “ payment system” means a system consisting o f a set o f instruments, banking procedures and typically, inter-bank funds transfer systems that ensure the circulation o f money; “public authority” m eans- (a) the authority for any political sub-division o f the United Republic, including any city, municipal, town or district council; or (b) any common services authority o f which Tanzania is a member with other countries; or (c) any corporation, agency or enteiprise specified for the purposes o f this Act by the Bank; “settlement system” means an arrangement established and operated by, or under thr control o f the Bank for the discharge o f payment obligations and settlement obligations between settlement system participants. PART II T h e B a n k
62
The Governm ents shall not hold or maintain any reserve o f external
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AI-assisted research summary: Governments must not hold or maintain reserves of external assets, except as needed for working balances.

62. The Governm ents shall not hold or maintain any reserve o f external assets except to the extent necessary for w orking balances.
63
Save with the written consent o f the Bank, no bank shall be registered
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AI-assisted research summary: A bank cannot be registered under any law with a name containing certain words unless the Bank gives written consent.

63. Save with the written consent o f the Bank, no bank shall be registered hereafter under the provisions o f any law, by a name which includes any o f the words “C entral”, “ State,” “Governm ent” and” Reserve” .
64
Section 64
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AI-assisted research summary: The Bank, its Board, and staff are treated as public service officeholders for this Act and other laws. The Board may make internal rules and directions. Good-faith acts under the Act are protected from legal proceedings, and some staff must report conflicts.

64. In the d ischarge o f its functions under this A ct and in the adm inistration o f any law, the Bank, m em bers o f the Board and staff o f the Bank shall be treated as holding office in the public service. 6 5 .-( 1) N otw ithstanding the provisions o f any other law, no action or other proceedings shall lie or be instituted against any m em ber o f the Board o f the Bank, official or em ployee o f the Bank for or in respect o f any act or thing done or om itted to be done in good faith in the exercise o f pow ers conferred by this Act. (2) Any official or other m em ber o f the staff authorized to make decisions on b eh a lf o f the Bank having an equivalent interest in any m atter involving the Bank shall be required to report that m atter to the 1 4 8 Limitation on external holdings Prohibited banking nam es Banks, etc., deem ed to be public service for certain purposes Immunity o f members o f the Board, sta ff and em ployees o f the Bank No. 4 Bank o f Tanzania 2006 (3) The Board may m ake by-laws, rules and issue directions, orders and circulars regulating the m anner by which the objective o f this Act may be carried on. (4) The by-law s, rules, directions, orders and circulars issued under subsection (3) m ay not be published in the Gazette. Repeal and savings Cap. 197
71
{1) The Bank o f Tanzania Act, is hereby repealed
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AI-assisted research summary: The Bank of Tanzania Act is repealed, but existing rules, appointments, and legal proceedings made under it continue for now until they are changed, revoked, or replaced under this Act.

71.-{1) The Bank o f Tanzania Act, is hereby repealed. (2) N otw ithstanding the repeal o f the Bank o f Tanzania Act - (a) all regulations, rules, orders, by-laws, directions or other subsidiaiy legislation made, given or issued under that Act and w hich are in force im m ediately before the date o f com ing into operation o f this Act shall remain in force until they are revoked, cancelled or varied by regulations, rules, orders, by-laws, directions or other subsidiary legislation made, given or issued under this Act; (b) all appointm ents made under that Act and w hich have not been revoked im m ediately before com ing into operation o f this A ct shall remain in force until they are revoked or fresh appointm ents are m ade under this Act; and (c) all legal proceedings instituted or O rders m ade under that A ct shall continue and be deemed to be proceedings or orders m ade under the provisions o f this Act. Passed in the N ational A ssem bly on the 3rd April, 2006. D a m i a n S . F o k a , Clerk o f the National Assembly 150 Bank o f Tanzania supervisor and shall not be entitled to make decisions related to that matter.
66
Section 66
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AI-assisted research summary: A judgment or order against the Bank cannot be enforced by execution, attachment, or similar process against the Bank or its property, but the Bank must pay amounts awarded against it to the entitled person.

66. Notwithstanding anything to the contrary in any written law, where any judgem ent or order has been obtained against the Bank, no execution or attachm ent or process in w hatever nature, shall be issued against the Bank or against any property or asset o f the Bank, but the Bank shall cause to be paid such am ounts as may, by judgem ent or order, be awarded against the Bank to the person entitled. Immunity o f the Bank
67
{1) All assets o f the G overnm ent including any local or foreign
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AI-assisted research summary: Government assets held or managed by the Bank are immune from enforcement proceedings, and courts must not issue execution, attachment, or similar processes against them.

67.—{1) All assets o f the G overnm ent including any local or foreign currency held on deposit or m anaged by the Bank, shall be immune from any enforcem ent proceedings and no execution, attachm ent or any other sim ilar process issued by any court for enforcing payment by the Bank in relation to any asset held on account o f the G overnm ent and no person shall be individually liable under any order for paym ent by the Bank or any officer o f the Bank in relation to such asset held on account o f the Government. Immunity o f all a s se ts m anaged by the Bank (2) W here in r e la tio n to any asset o f the G overnm ent held by the B>ank proceedings have been instituted in any court for enforcem ent or procuring execution by attachm ent or any other sim ilar process, the provisions o f the G overnm ent Proceedings Act, shall apply mutatis mutandis in relation to such proceedings against the Bank or any officer o f the Bank. Cap. 5
68
Section 68
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AI-assisted research summary: If this Act conflicts with another Act about the Bank’s powers or functions, this Act prevails.

68. In the event o f conflict arising from the provisions o f this Act and any other Act relating to the exercise o f pow er and perform ance o f functions o f the Bank, the provisions o f this Act shall prevail. O verriding effect
69
The Board shall prescribe rules to be applied by the Bank on the
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AI-assisted research summary: The Board may prescribe rules for the Bank to apply when waiving compliance or penalties for non-compliance with this Act or regulations.

69. The Board shall prescribe rules to be applied by the Bank on the w aiver o f com pliance or penalties for non-com pliance o f the provisions o f this Act or regulations and any such m atter that is econom ically or otherw ise im portant shall be referred to the Board for determ ination. W aiver for non-com p- liance
70
(1) The M inister m ay make regulations necessary or desirable to
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AI-assisted research summary: The Minister may make regulations to give effect to this Act.

70.—(1) The M inister m ay make regulations necessary or desirable to give effect to the provisions o f this Act. Powers to m ake regulations (2) Gazette. R egulations m ade under subsection (1) shall be published in the 149

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The Bank of Tanzania Act, 2006

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Provisions of The Bank of Tanzania Act, 2006

PART II

PART III

PART IV

PART V

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