The Bank of Tanzania Act

This Act may be cited as the Bank of Tanzania Act.

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

account services allowances annual reporting appointment appointments asset attachment asset enforcement balance of payments bank accounts bank discretion bank examinations bank governance bank name registration bank naming restrictions bank notes bank operations bank powers and functions bank supervision Banking and financebanking services banknotes banknotes and coin redemption blocked accounts board appointment eligibility +131 more

Statute overview

About this statute

This Act may be cited as the Bank of Tanzania Act. This Act applies to Mainland Tanzania and Tanzania Zanzibar. This section defines key terms used in the Act, including the Bank, banking business, financial institution, payment system, and other related terms. The Bank of Tanzania continues to exist as a corporation and can sue, be sued, and deal with property, subject to the Act. The Bank must carry out central bank functions, manage monetary policy and exchange rate policy, issue currency, supervise banks and financial institutions, manage reserves, supervise microfinance, and publish economic statistics.

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Provisions of The Bank of Tanzania Act

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1
This Act may be cited as the Bank of Tanzania Act
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AI-assisted research summary: This Act may be cited as the Bank of Tanzania Act.

1. This Act may be cited as the Bank of Tanzania Act. Application
2
This Act shall apply to Mainland Tanzania as well as to
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AI-assisted research summary: This Act applies to Mainland Tanzania and Tanzania Zanzibar.

2. This Act shall apply to Mainland Tanzania as well as to Tanzania Zanzibar. Interpretation
3
In this Act, unless the context otherwise requires
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AI-assisted research summary: This section defines key terms used in the Act, including the Bank, banking business, financial institution, payment system, and other related terms.

3. In this Act, unless the context otherwise requires - “Act” means the Bank of Tanzania Act; “Bank” means the Bank of Tanzania referred to under section 4(1) of this Act; “bank” means an entity that is engaged in the banking business; “banking business” means the business of receiving funds from the general public through the acceptance of deposits payable upon demand or after a fixed period or after notice, or any similar operation through the frequent sale or placement of bonds, certificates, notes or other securities, and to use the funds, in whole or in part, 1 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] for loans or investments for the account of and at the risk of the person doing the business; “Board” means the Board of Directors of the Bank established under section 9 of the Act; “credit reference bureau” means an entity specialised in the collection and sale of credit performance information for individuals and companies; “credit reference databank” means a computerised mechanism created by the Bank to receive and supply institutions, credit information to banks, financial reference bureaus and other institutions authorised by the Bank, regarding the credit transactions of customers including their off-balance sheet operations; “clearing system” means a set of 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 of participants’ bilateral or multilateral net positions with a view to facilitating the settlement of their obligations on a net or gross basis; “Director” means a member of the Board other than the Governor or the Deputy Governors; “Deputy Governor” means a Deputy Governor appointed under section 8(3); “ex-officio member” means a member of the Board who attends a meeting by virtue of his position; “financial institution” means an entity engaged in the business of banking but limited as to size, locations served, or permitted activities, as prescribed by the Bank or required by the terms and conditions of its licence; “foreign exchange” means currencies and units of accounts other than the currency of the United Republic, and claims in and to the currencies and units of accounts; “Government” means the Government of the United Republic; “Governments” means the Government of the United Republic and the Revolutionary Government of Zanzibar; 2 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] “Governor” means a Governor of the Bank appointed under section 8(1); “member” in relation to the Board, means a member of the Board of Directors; “Minister” means, except where otherwise specified, the Minister responsible for financial matters of the United Republic; “payment system” means a system consisting of a set of instruments, banking procedures and typically inter- bank funds transfer systems that ensure the circulation of money; “public authority” means- (a) the authority for any political sub-division of the United Republic, including any city, municipal, town or district council; (b) any common services authority of which Tanzania is a member with other countries; or (c) any corporation, agency or enterprise specified for the purposes of this Act by the Bank; “settlement system” means an arrangement established and operated by, or under the control of the Bank for the discharge of payment obligations and settlement obligations between settlement system participants. PART II THE BANK Establishment of Bank

Part

PART II

4
(1) There shall continue to exist a corporation going by the
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AI-assisted research summary: The Bank of Tanzania continues to exist as a corporation and can sue, be sued, and deal with property, subject to the Act.

4.–(1) There shall continue to exist a corporation going by the name and style of the Bank of Tanzania. (2) The Bank of Tanzania shall be a body corporate and in its corporate name shall- (a) have perpetual succession and a common seal; (b) be capable of suing and being sued; and (c) subject to the provisions of this Act, be capable of acquiring, holding and alienating any movable or immovable property. 3 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] Principal functions of Bank Act No. 10 of 2018 s. 66 Regulatory and supervisory functions with respect to clearance and settlement systems
5
(1) The principal functions of the Bank shall be to exercise
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AI-assisted research summary: The Bank must carry out central bank functions, manage monetary policy and exchange rate policy, issue currency, supervise banks and financial institutions, manage reserves, supervise microfinance, and publish economic statistics.

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

6.–(1) The Bank shall- (a) regulate, monitor, and supervise the payment, clearing and settlement system including products and services thereof; and (b) conduct oversight functions on the payment, clearing and settlement systems in any bank, financial institution or infrastructure service provider or company. (2) The Bank may- (a) participate in any 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 of payment, clearing and settlement systems. Formulation and implementation of monetary policy
7
(1) The primary objective of the Bank shall be to formulate,
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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 economic growth.

7.–(1) The primary objective of the Bank shall be to formulate, define and implement monetary policy directed to the economic objective of maintaining domestic price stability 4 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] conducive to a balanced and sustainable growth of the national economy. (2) Without prejudice to subsection (1), the Bank shall ensure the integrity of the financial system and support the general economic policy of the Government and promote sound monetary, credit and banking conditions conducive to the development of 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. Appointment of Governor and Deputy Governors
8
(1) There shall be appointed by the President, a Governor
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AI-assisted research summary: The President must appoint a Governor and three Deputy Governors, subject to stated qualifications and term limits.

8.–(1) There shall be appointed by the President, a Governor who shall, unless he dies, resigns, vacates or is removed from his office for good cause or is disqualified, hold office for a period of five years and be eligible for a re-appointment. (2) A person shall not qualify to be appointed as a Governor unless he- (a) holds a university degree; (b) has not less than fifteen years experience in the fields of economics, banking, accountancy, finance or law; (c) has been in senior managerial positions in the institutions, private government departments or institutions or international organisations; and (d) has not been appointed and served as the Governor for two consecutive terms. (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 of five years and be eligible for re-appointment for a further term of five years only. (4) The appointment of the Deputy Governors shall be made on the basis that, at least one of the appointees hails from either side of the United Republic. 5 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] Board of Directors Act No. 11 of 2010 s. 4
9
(1) There shall be a Board of Directors of the Bank and
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AI-assisted research summary: This provision creates the Bank’s Board of Directors, sets its responsibilities, specifies who sits on it, and gives appointment and referral powers to certain officials.

9.–(1) There shall be a Board of Directors of the Bank and subject to this Act, the Board shall be responsible for the determination of the policy of the Bank, approval of its budget and 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 of the Board may refer any matter for consideration by the Board. (2) The Board shall consist of- (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 Principal Secretary to the Treasury of the Revolutionary Government of Zanzibar, who shall be an ex-officio member; (d) one representative from the Ministry responsible for finance in the Government of the United Republic; and (e) four non-executive Directors at least one of whom hails from either side of the United Republic. (3) The Permanent Secretary to the Treasury of the Government of United Republic and the Principal Secretary to the Treasury of the Revolutionary Government of Zanzibar, may appoint in writing, persons in the public service to be their representatives who shall, at any meeting for which they are appointed, have the powers of the Permanent Secretary or Principal Secretary, in their capacities as members of the Board. (4) The non-executive Directors shall be appointed by the Minister and each shall hold office, unless he dies, resigns, vacates or is removed from office, for a term of three years, and be eligible for re-appointment for one further term. (5) The members of the Board shall be appointed on the basis of merit from amongst persons who hold degrees or the equivalent qualification from an institution of higher learning recognised in Tanzania and are experienced in economics, business and finance, banking, corporate law, accountancy or other disciplines relevant to the functions of the Bank. 6 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] Disqualification for appointment to Board Cap. 298 (6) In considering the appointment of a person to the office of member of the Board, regard shall be had in relation to that office, to the likelihood of any conflict arising between the interests of the Bank and any interests which that person has or represents. (7) There shall be a Secretary to the Board who shall perform the following functions: (a) Counsel and Secretary to the Board; (b) writing and keeping records of proceedings of meetings of the Board; (c) convening and preparing meetings of the Board as may be directed by the chairman; (d) advising on legal matters and keeping abreast laws governing the conduct of business of the Bank; and (e) other function as may be directed by the Board or the Governor.
10
(1) A person shall not be qualified to be appointed as a
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AI-assisted research summary: This section says who cannot be appointed to the Board, when a Board member is disqualified from holding office, and that removal is limited to the grounds listed here.

10.–(1) A person shall not be qualified to be appointed as a member of the Board, where he is- (a) a member of the National Assembly, the House of Representatives or a local government authority; (b) a person who is a public servant within the meaning of this term in the Public Service Act, other than the Permanent Secretary to the Treasury of the Government of the United Republic and the Principal Secretary to the Treasury of the Revolutionary Government of Zanzibar or their representatives for the purposes of section 9(2)(c); (c) a director, officer, employee, consultant, lawyer, agent or shareholder of a bank or a financial institution in respect of which the Bank may exercise a regulatory power; or (d) an office bearer of any of the political parties registered in Tanzania. (2) A member of the Board shall be disqualified to hold office where he- 7 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] (a) acquires any attribute which had he not been a member, would disqualify him for appointment; (b) becomes bankrupt, suspends payment or compounds with his creditors; (c) is adjudged or otherwise declared to be of unsound mind; (d) is convicted of a felony or any offence involving fraud or dishonesty; (e) is absent without the leave of the chairman of the Board from three consecutive meetings of the Board; or (f) tenders resignation. (3) A member of the Board shall not be removed from his office on grounds other than those stated in this section. Meetings, quorum, conduct, and decisions of Board
11
(1) The Board shall meet as often as may be required for
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AI-assisted research summary: The Board must meet regularly, at least once every two months, and follow set rules for notice, quorum, voting, conflicts of interest, and urgent decisions.

11.–(1) The Board shall meet as often as may be required for the conduct of its business and affairs but shall meet at least once in every two months. (2) Meetings of the Board shall be convened, and notice given in accordance with the by-laws of the Bank and, in addition, the Chairman or in his absence, the Deputy Chairman, shall convene a meeting of the Board within a reasonable time of a requisition in that behalf by any member of the Board. (3) Subject to subsection (4), quorum at meetings of 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 of the Chairman or in his absence, the Deputy Chairman, any matter or business is of an unusual urgent nature which cannot await the convening of a meeting consisting of the quorum, the matter may be decided at a meeting of the Chairman or as the case may be, the Deputy Chairman and at least two Deputy Governors and one non-executive member and the decision shall be as valid and binding on the Bank as if it were a decision of a meeting consisting of the quorum and a decision shall be reported to an extra ordinary meeting of the Board. 8 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] (6) Decisions of the Board shall be reached by consensus. (7) Without prejudice to the provision of subsection (6), where the members of the Board fail to reach a consensus on any matter before the Board, the matter shall be decided by voting; and where the votes are equal, the Chairman shall have a casting vote in addition to his deliberative vote. (8) Members of the Board referred to under paragraph (c) of subsection (2) of section 9 shall not vote in the event when a decision is to be reached by casting of votes. (9) A member of the Board or its committees, who is interested in any matter involving the Bank, or in the exercise or proposed exercise of powers of the Bank, shall declare that interest at a meeting of the Board or its committees, at which that matter or the exercise or proposed exercise of the power is considered by the Board or committee and the member of the Board or 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 of the Board is reached by voting, the Governor shall inform the Minister accordingly. (11) Subject to provisions of subsection (3), an act or proceeding by the Board shall not be invalidated by reason of the existence of a vacancy among the members and acts done in good faith by a member of the Board shall be valid notwithstanding that, some defect in his appointment or qualifications be afterwards discovered. (12) Subject to other provisions of this Act, the Board may regulate its own procedure.
12
(1) The Board shall appoint a Monetary Policy Committee,
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AI-assisted research summary: The Board must appoint committees, set their composition and functions, and committees must report to the Board, keep minutes, and follow quorum rules.

12.–(1) The Board shall appoint a Monetary Policy Committee, an Audit Committee and other committees as it may be necessary for the discharge of its functions; and, subject to the provisions of this Act, specify the composition and functions of every committee appointed under this section and the terms and conditions upon which the committee shall exercise its functions. 9 Standing Committees of Board ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] (2) A committee shall report to the Board at its next regular meeting on the proceedings and actions of the committee, and the Board may approve, vary or reverse any decision of the committee or may give directions affecting any action of the committee as the Board may deem fit in the circumstances of each case. (3) Subject to the provisions of this Act and any directions given by the Board in that behalf, a committee shall regulate its own proceedings. (4) The Monetary Policy Committee established under subsection (1) shall be composed of 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 of the monetary policy set out by the Board and 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 of its functions and promptly submit to the Board a report of its proceedings after each meeting by submitting the minutes of the meeting. (7) The quorum at meetings of the committee mentioned in subsection (5) shall be three members, one of whom shall be the Chairman or in his absence, the Deputy Chairman. (8) Subject to the provisions of this Act and any directions given by the Board in that behalf, a committee established under subsection (1) shall keep minutes of its meetings, reflecting its position on the issues raised and determined. Management of Bank and powers of Governor and Deputy Governors
13
(1) Subject to the provisions of this Act, the management
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AI-assisted research summary: The Governor runs the Bank’s management and business, must follow the Board’s policy decisions, and the Deputy Governors support management under the Governor’s supervision.

13.–(1) Subject to the provisions of this Act, the management of the Bank and the direction of its business and affairs is vested in the Governor and the Governor shall, in the exercise of the functions and direction, conform with the policy and other decisions made by the Board. 10 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] (2) The Governor shall, unless the Board determines otherwise, exercise powers, perform functions and execute duties of the Bank, other than any function specifically conferred on the Board, and authorise expenditure within the budget approved by the Board. (3) The Governor shall, subject to subsection (2), be the principal representative of the Bank and in that capacity: (a) represent the Bank in its relation with other institutions, including the Government; (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 of the Bank; and (d) delegate any authority provided for in this subsection, including the power of delegation to any member of the Board or other officers of the Bank. (4) Each of the Deputy Governors shall: (a) subject to the general supervision of the Governor, be responsible for the day to day management of business and affairs of the Bank as determined by the Governor; (b) discharge other duties as may be assigned to him by the Governor. (5) The Deputy Governor acting in the capacity of Deputy Chairman shall have full powers to act for the Governor. (6) The exercise by the Deputy Governor of any function of the Governor shall in the absence of proof to the contrary, be deemed to be a valid exercise of the function pursuant to subsection (5). (7) The Governor and the Deputy Governors shall, while in the service of the Bank, work full time and shall not, while holding their respective offices, occupy or hold any other paid 11 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] or unpaid office or employment or engage in any professional or private enterprises activities. (8) Subsection (7) shall not prohibit the Governor or Deputy Governor from becoming or acting: (a) as a governor, director or member of the Board of any international bank or monetary authority to which the Government have adhered or given support or approval; or (b) as a director of any corporation in Tanzania which the Bank may, in pursuance to the provisions of section 58, promote. (9) The President may, by order published in the Gazette, specifically exempt any transactions or activities from provisions of subsections (7) and (8). (10) Duties and responsibilities of each of the Deputy Governors shall be issued in by-laws and be published in the Gazette.
14
(1) The salaries and allowances including retirement
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AI-assisted research summary: The President sets the Governor’s and Deputy Governors’ salaries and allowances, and the Board sets its members’ fees and service terms with the Minister’s approval.

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

15.–(1) Subject to the general terms and conditions of service and the establishment prescribed by the Board, the Governor shall be responsible for the appointment, termination of appointment and discipline of the staff of the Bank. (2) The powers of the Board to make provisions for the staff of the Bank shall include power to provide for benefits for or in respect of staff who die or retire and their surviving dependants. 12 Remuneration of Governor, Deputy Governors and members of Board Appointment of officers and other staff of Bank ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] Secrecy Capital, reserves and accounts of Bank General Reserve Fund, etc., and allocation of profits
16
Except for purposes of the performance of his functions,
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AI-assisted research summary: Board members and Bank staff must not disclose Bank, transaction, or customer information, except when performing their functions, when required by law, or when authorised by the Board.

16. Except for purposes of the performance of his functions, when required by law or authorised by the Board, a member of the Board or staff of the Bank shall not disclose any information relating to the Bank or to any transaction or customer of the Bank acquired in the course of employment or the discharge of his duties.
17
(1) The authorised capital of the Bank shall be one hundred
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AI-assisted research summary: The Bank’s authorised capital is set at one hundred billion shillings, its capital must be held only by the Government, and its paid-up capital must not be reduced.

17.–(1) The authorised capital of the Bank shall be one hundred billion shillings, provided that, it may be increased by the amount as may be determined by the Board, and authorised by the Minister, by notice published in the Gazette. (2) The capital of the Bank shall be subscribed and held only by the Government of the United Republic. (3) The Bank may, having regard to the amount by which the value of the assets of the Bank exceed its liabilities, increase its paid-up capital by the amount payable out of the General Reserve Fund as the Board shall, by order published in the Gazette, direct. (4) The paid-up capital of the Bank shall not be reduced.
18
(1) The Bank shall establish and maintain
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AI-assisted research summary: The Bank must set up and keep reserve funds, move specified profits into the General Reserve Fund, and pay residual net realised profits into the Consolidated Fund on a timetable tied to the end of the financial year.

18.–(1) The Bank shall establish and maintain: (a) a General Reserve Fund; (b) a Foreign Exchange Revaluation Reserve; (c) other appropriate assets revaluation reserves or retained net unrealised gains reserves set up under a decision of the Board to reflect changes in market values of the Bank’s major assets and in accordance with the best international accounting practice; and (d) other special reserves or funds from appropriation of net profit. (2) The Bank shall transfer to the General Reserve Fund twenty five per-centum of the net profits until the time that the total capital of the Bank reach a sum equivalent to at least ten per-centum of the total assets of the Bank less its assets in gold and foreign currencies, thereafter the Bank shall transfer not less than ten percent of its net profits to the General Reserve Fund. 13 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] (3) The Board shall determine, whenever the authorised capital, the General Reserve Fund, the Foreign Exchange Revaluation Reserve and other appropriate asset revaluation reserves or retained net unrealised gains reserves set up by the Board are below five per cent of monetary liabilities and profits shall be retained to the General Reserve Fund, the Foreign Exchange Revaluation Reserve and any other asset revaluation reserve. (4) Unrealised profits or losses from any revaluation of the Bank’s net assets or liabilities in gold, foreign exchange, foreign securities or any internationally recognised reserve asset as a result of any change in the par or other value of any currency unit shall be transferred to a special account to be called the Foreign Exchange Revaluation Reserve Account; the same procedure shall be applied to market value movements in relation to the Bank’s other major assets when any of the underlying asset is eventually sold, any resultant realised components shall be transferred to the income statement. (5) Both realised and unrealised gains and losses shall be included in the profit calculation but only the residual of any net realised profits of the Bank shall be paid within three months of the close of each financial year, into the Consolidated Fund; subject to the condition that, where at the end of any financial year, any of the Governments is indebted to the Bank, the Bank shall first apply the remainder of its net realised profits to the reduction or discharge of the indebtedness and thereafter, the amount as relates to the net realised profits of the Bank in the relevant financial year shall be paid out of the Consolidated Fund to the Treasury of the Government of the United Republic and the Revolutionary Government of Zanzibar in accordance with the formula agreed upon by the Governments. Losses charged on Consolidated Fund
19
(1) Where the Bank’s balance sheet indicates that, the
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AI-assisted research summary: If the Bank’s assets fall below its liabilities plus statutory fund, the Minister must issue securities to restore paid-up capital.

19.–(1) Where the Bank’s balance sheet indicates that, the amount of its assets is less than the amount of its liabilities and the statutory fund, the Minister shall, on behalf of the United Republic, issue to the Bank negotiable interest-bearing 14 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] securities at market determined interest rates with a fixed maturity date to the amount necessary to restore the Bank’s level of paid up capital. (2) The securities issued shall be redeemed from the annual excess of the Bank’s revenue over expenditure prior to deduction of the amount for the General Reserve Fund. (3) The procedure under subsection (1) for covering the balance sheet deficit shall be applied in cases when the resources of the General Reserve Fund, the Foreign Exchange Revaluation Reserve, and other reserves and funds set up by the Board according to subsection(1) of section 18 have been exhausted.
20
(1) The financial year of the Bank shall be the period
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AI-assisted research summary: The Bank’s financial year runs from 1 July to 30 June, and it must keep its accounts, audit functions, and external audit arrangements in line with the stated accounting and audit standards.

20.–(1) The financial year of the Bank shall be the period commencing on 1st July of each year and the accounts of the Bank shall be closed on 30th June of each financial year. (2) The Bank’s accounting policies, procedures and associated accounting records shall be consistent with the best international accounting standards. (3) The Board shall appoint or re-appoint a head of internal audit who shall be fully compliant with international audit standards for a period of three years as head of the internal audit function who shall report to the Governor and to the Audit Committee and may report to the Board. (4) The function of 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 of internal audit and may direct the head of internal audit to conduct reviews of the implementation of the decisions by the Board and any other review deemed necessary. (6) The annual external audit of the Bank shall be performed in accordance by the Controller and Auditor-General with international accounting and audit standards and in compliance with the Public Finance Act. 15 Accounting, auditing and reporting Act No. 14 of 2009 s. 31(a) Cap. 348 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] Submission of report to National Assembly Act No. 14 of 2009 s. 31(b) (7) The Bank shall, within three months of the close of the financial year, submit to the Controller and Auditor-General accounts for auditing.
21
(1) The Bank shall publish and submit to the Minister
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AI-assisted research summary: The Bank must publish and submit several reports and statements on a set schedule, and the Minister must pass some of them on to the National Assembly.

21.–(1) The Bank shall publish and submit to the Minister within six months after the close of each financial year and the Minister shall submit to the National Assembly the Bank’s annual report comprising of- (a) a report of the Bank’s operations and principal functions in particular its monetary policy and other activities throughout the year; and the balance sheet and the profit and loss account; and (b) associated financial statements as well as detailed notes to the accounts for the year and the previous year’s comparative data certified by the external auditor along with the external auditor’s opinion. (2) The Bank shall publish, within ten business days of the subsequent month, a monthly aggregated balance sheet audited by the head of internal audit. (3) The Bank shall, at intervals of not more than six months after submission of each preceding statement, publish and submit to the Minister the monetary policy statement for the next six months or shorter period as may be specified by the Minister. (4) The Minister shall submit to the National Assembly the statement submitted under the provisions of subsection (3). (5) The Bank shall, at intervals of not more than six months following the submission of the initial report, publish and submit to the Minister progress reports on the implementation of monetary policy and reports on the outlook for the future and the Minister shall submit the 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; 16 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] (c) contain a statement of how the Bank considers monetary policy to be formulated and implemented during the next twelve months; and (d) contain a review and assessment of the implementation by the Bank of monetary policy during the 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 of monetary policy. (7) In addition to the reports published by the Bank under the provisions of this section, the Bank may issue other publications, including the statements of the Board on issues of monetary policy as the Board considers to be in the public interest.
22
(1) The Bank shall be exempt from payment of any taxes,
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AI-assisted research summary: The Bank is exempt from paying taxes, levies, duties, and stamp or other duties for the listed Bank-related matters and currency notes/coins.

22.–(1) The Bank shall be exempt from payment of any taxes, levies or duties in respect of its profits, operations, capital, property or documents or any transaction, deed, agreement or promissory note to which it is a party. (2) The Bank shall be exempt from the payment of stamp or other duties in respect of notes and coins issued as currency. Exemption from certain taxes Liquidation and winding up of Bank Cap. 212
23
The Bank shall be placed in liquidation or wound up
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AI-assisted research summary: The Bank must be placed in liquidation or wound up under the procedure set by an enactment of Parliament.

23. The Bank shall be placed in liquidation or wound up pursuant to the procedure prescribed in an enactment of Parliament but the provisions of the Companies Act and the Companies Decree shall not apply in relation therewith. By-laws
24
(1) The Board may make by-laws for the good order and
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AI-assisted research summary: The Board may make by-laws for the Bank’s good order and management, must make rules for travel expenses and out-of-pocket allowances for Board members and staff, and those by-laws or rules may not be published in the Gazette.

24.–(1) The Board may make by-laws for the good order and management of the Bank. (2) The Board shall make rules regulating travel expenses and out of pocket allowances applicable to members of the Board and the staff of the Bank incurred in discharging their duties. (3) By-laws made pursuant to subsection (1) and rules under subsection (2) may not be published in the Gazette. 17 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] PART III CURRENCY Currency and its issue

Part

PART III

25
The unit of currency in Tanzania shall be the shilling each
Verify source ↗

AI-assisted research summary: Tanzania’s currency unit is the shilling, and each shilling is divided into 100 cents.

25. The unit of currency in Tanzania shall be the shilling each of which shall be divided into one hundred cents. Issuance of bank notes and coins
26
The Bank shall have the sole right to issue bank notes and
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AI-assisted research summary: The Bank has the sole right to issue bank notes and coins in and for 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. Notification of notes and coins
27
(1) Bank notes and coins shall be
Verify source ↗

AI-assisted research summary: The Bank must publish notice in the Gazette about bank note and coin denominations and other characteristics before they are used, and it may set those features with the Minister’s approval.

27.–(1) Bank notes and coins shall be- (a) in denominations of the shilling or fractions thereof expressed in cents; and (b) of materials, forms and designs and bear inscriptions, devices and have other characteristics, as the Bank shall determine with the approval of the Minister. (2) The Bank shall give notice in the Gazette of the denominations and other characteristics of the bank notes and coins before they are circulated for use. Legal tender
28
(1) Subject to the provisions of this section
Verify source ↗

AI-assisted research summary: Bank notes and coins are legal tender at face value, and the Bank may call in its issued notes or coins after giving reasonable notice in the Gazette.

28.–(1) Subject to the provisions of this section- (a) bank notes shall be legal tender at their face value for the payment of any amount; (b) coins shall be legal tender at their face value in the case of- (i) a shilling, or any multiple of a shilling, for the payment of any amount; (ii) coins having a face value of fifty cents or below, for the payment of 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 of the face value thereof. (3) Notes or coins with respect to which a notice has been given under this section shall, on the expiration of the notice, cease to be legal tender. 18 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] Lost and damaged currency (4) This section shall not 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.
29
(1) A person shall not be entitled to recover from the Bank
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AI-assisted research summary: A person cannot recover from the Bank the value of certain lost, stolen, imperfect, mutilated, or tampered bank notes or coins. The Bank may still decide whether to award or refund a value in some cases, at its absolute discretion.

29.–(1) A person shall not be entitled to recover from the Bank the value of any lost, stolen or imperfect bank note or coin, or of any bank note that has been mutilated or of any coin that has been tampered with. (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 of any events referred to in subsection (1). (3) The circumstances in which and conditions and limitations upon which, the value of any lost, stolen or imperfect notes or coins, mutilated notes or coins which have been tampered with, may be refunded as of grace by the Bank and shall be within the absolute discretion of the Bank. (4) For the purposes of this section, a coin shall be deemed to have been tampered with where 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. Destruction of coins and notes
30
The Bank may melt down, break up or deface any coin and
Verify source ↗

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 deface or destroy any bank note which has been called in or tampered with. PART IV OTHER OPERATIONS OF THE BANK The Bank as banker to Governments and other public authorities

Part

PART IV

31
(1) The Bank shall be the banker, and act as the fiscal agent
Verify source ↗

AI-assisted research summary: The Bank must act as banker and fiscal agent for the Governments, and it may also do so for any public authority if arrangements are made with the relevant authority.

31.–(1) The Bank shall be the banker, and act as the fiscal agent of the Governments. (2) The Bank may, subject to arrangements as may be made with the authority concerned, act as banker and fiscal agent for any public authority. 19 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] Functions as banker and fiscal agent Act No. 4 of 2017 s. 4
32
(1) The Bank in its capacity as a banker and fiscal agent of
Verify source ↗

AI-assisted research summary: The Bank must act as the official depository for the Governments or public authorities, accept deposits and make payments, and the Governments and public authorities must deposit their money with the Bank.

32.–(1) The Bank in its capacity as a banker and fiscal agent of the Governments or of any public authority, shall be the official depository of the Governments or public authority concerned and accept deposits and effect payments for the account of the Governments or public authority. (2) Without prejudice to subsection (1), the Bank may, after consultation with the Governments or the public authority and the bank concerned, select any other bank to be the official depository of the Governments or the public authority and in respect therewith shall- (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 of the Governments for servicing the public debt, including the issuance of payment of interest on and the redemption of bonds and other securities of the Governments; (c) pay, remit, collect or accept for deposit or custody funds in Tanzania or abroad; (d) purchase, sell, transfer or accept for custody cheques, bills of exchange and other securities; (e) collect the proceeds, whether principal or interest resulting from the sale of accruing to the interest of the Government or public authority of securities or other property; and (f) purchase, sell, transfer or accept for custody gold or foreign exchange. (3) The Government and public authorities shall open and deposit their moneys with the Bank. (4) The Bank may make regulations for the better carrying out of the provisions of this section. Bank fee
33
The Bank may charge fee for its services as banker or fiscal
Verify source ↗

AI-assisted research summary: The Bank may charge fees for acting as banker or fiscal agent for the Governments.

33. The Bank may charge fee for its services as banker or fiscal agent of the Governments at rates and on cost recovery basis as the Bank shall determine. 20 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] Direct advances and other short term credit to the Governments, etc. Acts Nos. 4 of 2018 s. 4 14 of 2019 s. 10
34
(1) Subject to the provisions of this section, the Bank may
Verify source ↗

AI-assisted research summary: The Bank may make direct advances to the Governments and buy, hold, and sell short-term Treasury bills, subject to this section’s limits.

34.–(1) Subject to the provisions of this section, the Bank may- (a) make direct advances to the Governments for the purposes of offsetting fluctuations between receipts from- (i) voted funds which originated from the Consolidated Fund; (ii) unspent funds from various sources; and (iii) payments of the Governments; and (b) purchase, hold and sell Treasury bills issued by the Governments which mature not later than twelve months from the date of issue. (2) An advance made to the Governments under this section shall- (a) be made solely for the purpose of providing temporary accommodation to the Governments and accordingly, be repayable within one hundred and eighty days; and (b) bear interest at market rates as determined by the Bank. (3) For purposes of this section and section 35: “voted funds” means receipts from budgeted revenues of the Governments which are deposited in and paid from the Consolidated Fund; “unspent funds” means receipts of the Governments from various sources which are deposited in and paid from the deposit accounts other than the Consolidated Fund.
35
(1) Subject to the provisions of this section, the Bank may,
Verify source ↗

AI-assisted research summary: The Bank may buy, hold, and sell certain government securities, subject to this section.

35.–(1) Subject to the provisions of this section, the Bank may, for the purpose of offsetting fluctuations between receipts from the voted and unspent funds and payment of 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 the market rate as determined by the Bank and mature not later than twelve months from the date of issue. (2) The total amount outstanding at any time of advances made by the Bank under this section and section 34 shall not 21 Operation in Government securities, etc. Acts Nos. 4 of 2018 s. 5 10 of 2018 s.66 5 of 2022 s. 6 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] Meaning of annual budgeted revenue Act No. 16 of 2015 s. 4 5 of 2022 s. 7 exceed eighteen percentum of the budgeted domestic revenues of Governments as defined in section 36.
36
(1) For the purposes of section 35, the budgeted domestic
Verify source ↗

AI-assisted research summary: For section 35, the Governments’ budgeted domestic revenues are the actual collected revenues from the previous fiscal year.

36.–(1) For the purposes of section 35, the budgeted domestic revenues of the Governments shall be the actual collected revenues of the previous fiscal year. (2) Collected revenues shall include taxes, levies, duties, fees, profits and income from any investment or undertaking and any contribution to the revenue of the Governments from any political sub-division of the United Republic, excluding loans, grants and other forms of economic aid and borrowing whether of short or long term. Prohibition of other credit to Governments, etc.
37
Except as provided in sections 34 and 35, the Bank shall not
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AI-assisted research summary: The Bank must not extend credit, directly or indirectly, to Governments or any public authority, except as allowed by sections 34 and 35.

37. Except as provided in sections 34 and 35, the Bank shall not extend any credit directly or indirectly to the Governments or any public authority. Financial relations with other banks Re-discounts etc.
38
(1) The Bank may open accounts, accept deposits and
Verify source ↗

AI-assisted research summary: The Bank may open accounts, accept deposits, collect money and monetary claims, and provide additional services to banks and financial institutions.

38.–(1) The Bank may open accounts, accept deposits and collect money and other monetary claims for and on account of banks and financial institutions and generally act as a banker to banks and financial institutions. (2) Subject to the provisions of this Act, the Bank may provide additional services to banks and financial institutions, including interbank clearings and the provision of safe deposit facilities.
39
Provision
Verify source ↗

AI-assisted research summary: The Bank may buy, sell, and rediscount certain bank-endorsed or bank-accepted credit instruments, and it must set limits on access to rediscount facilities.

39.–(1) The Bank may, on terms and conditions as it may prescribe, purchase, sell and rediscount on behalf of banks, bills of exchange, promissory notes and other credit instruments so long as the instruments bear the endorsement or acceptance of a bank, and matures within one hundred and eighty days from the date of acquisition or rediscount by the Bank. (2) The Bank shall set limits of access to the rediscount facilities. Loans and advances
40
Provision
Verify source ↗

AI-assisted research summary: The Bank may grant short-term loans and advances to banks and financial institutions on terms it prescribes, using approved collateral.

40.–(1) The Bank may, on terms and conditions as it may prescribe, grant loans and advances to banks and financial 22 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] institutions for a period not exceeding three months against the collateral of: (a) credit instruments satisfying the requirements of section 39; (b) treasury bills satisfying the requirements of section 39; or (c) other credit instruments or securities prescribed by the Bank. (2) For the purposes of this section, the word “financial include the Deposit Insurance Fund institution” shall established under the law regulating banks and financial institutions in the United Republic. Bank as lender of last resort
41
The Bank shall be a lender of last resort and at penal
Verify source ↗

AI-assisted research summary: The Bank may act as lender of last resort and provide exceptional advances or contingent commitments to solvent but illiquid banks and financial institutions in Tanzania, subject to stated conditions.

41. The Bank shall be a lender of last resort and 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 where- (a) in the opinion of the Board, the advance or commitment is necessary having regard to the financial condition of the bank or the financial institution and its systemic significance to the stability in the financial market; (b) in the opinion of the Bank, the bank is solvent and provides adequate collateral and the request for financial assistance is based on the need to improve liquidity; (c) available collateral is insufficient and the Minister has on behalf of the Government concurred in writing on the advance or commitment proposed by the Bank to that effect; (d) the Minister on behalf of 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 Governments to cover the advance or full amount of the commitment given in the event that it is realised; and 23 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] Bank not to extend credit Bank may purchase, hold and sell securities Control of banking activities (e) the Bank approves upon consent of the Board, each loan and guarantee or other contingent commitment of the Bank or the benefit of a bank or other financial institution pursuant to this section.
42
(1) Except as provided in sections 39, 40 and 41, the Bank
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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. The Bank must also determine and publish interest rates for rediscounting instruments and for loans or advances to banks and financial institutions.

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. (2) The Bank shall determine and publish the rates of interest for rediscounting instruments and granting loans or advances to banks and financial institutions.
43
(1) For monetary policy purposes, the Bank may purchase,
Verify source ↗

AI-assisted research summary: The Bank may buy, hold, and sell certain securities for monetary policy purposes, but not to finance government budget deficits, and purchases must be on the secondary market at market rates.

43.–(1) For monetary policy purposes, the Bank may purchase, hold and sell securities issued by any of the Governments or authority for a political sub-division of the United Republic, but the purchases shall not be made to finance any Government budget deficit of either of the Governments and shall be made on the secondary market at market rates. (2) The Bank may equally purchase and sell its own negotiable debt securities.
44
(1) Subject to the provisions of this section, the Bank may
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AI-assisted research summary: The Bank may require banks and financial institutions to hold minimum cash reserves, set reserve rules, and must charge a daily penalty for failing to keep the required balances.

44.–(1) Subject to the provisions of 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 of the banks and financial institutions and in that respect, prescribe the currency or the currencies in which the balances shall be held. (2) The Bank may prescribe different ratios for different kinds of deposits and other liabilities and may prescribe the methods of computing the amount of the reserves which ratios and methods shall apply uniformly to banks and financial institutions and may exclude certain liabilities from this calculation. (3) A requirement or increase in the ratios shall take effect on the expiration of at least thirty days notice to the banks and financial institutions. 24 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] (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 of the deficiency of greater than 0.2 per centum or three times the average yearly lending rate of the bank or the financial institution divided by 360, and the 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. Liquid assets ratio Cap. 342
45
A bank or financial institution shall maintain liquid
Verify source ↗

AI-assisted research summary: Banks or financial institutions must keep liquid assets at levels set by the Bank.

45. A bank or financial institution shall maintain liquid assets at levels prescribed by the Bank in accordance with the provisions of the Banking and Financial Institutions Act. Submission and publication of information Cap. 342 Power to conduct examinations of banks or financial institutions Act No. 2 of 2022 s. 26 Cap. 423
46
(1) A bank or financial institution and any affiliate
Verify source ↗

AI-assisted research summary: Banks, financial institutions, and any affiliates must give the Bank information it requires, in the time and form the Bank prescribes.

46.–(1) A bank or financial institution and any affiliate shall furnish to the Bank, at a time and in a manner as may be prescribed by the Bank, the information as the Bank may require for the proper discharge of its functions and responsibilities under this Act. (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 an officer who is in default on conviction shall be liable under section 66 of the Banking and Financial Institutions Act to a default fine stipulated thereunder.
47
(1) Notwithstanding any provision to the contrary
Verify source ↗

AI-assisted research summary: The Bank may access specified information and things held by a bank, financial institution, or its affiliate, and may examine banks or financial institutions when it considers it necessary.

47.–(1) 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, minutes, accounts, cash securities, documents, vouchers as well as any other things in the possession or custody or under the control of a bank or financial institution or its affiliate, which relate to the business of the bank or financial institution or to anti-money laundering and countering terrorist financing matters pursuant to the Anti-Money Laundering Act. 25 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] Cap. 342 Credit reference system (2) The Bank may carry out, at a times as it may consider necessary, an examination of any bank or financial institution in accordance with the provisions of the Banking and Financial Institutions Act.
48
(1) The Bank shall create a credit reference system designed
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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 client credit information to it.

48.–(1) The Bank shall create a credit reference system designed to collect and provide information on the payment record of the clients of banks and financial institutions, savings and credit schemes and other entities engaged in a regular basis in the extension of credit within the United Republic. (2) The credit reference system shall consist of a credit reference databank administered by the Bank and private credit reference bureaus operating under the conditions prescribed by the Bank. (3) The banks and financial institutions shall, having ascertained the proper identity of their customers, individuals as well as representatives of customers that are legal entities, report to the credit reference databank detailed information about 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 of a unique identification number to each client by banks and financial institutions. (5) The information received from banks and financial institutions shall be consolidated by the Bank with a view to determine, at a minimum, the total indebtedness and payment performance of each client 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 of funds, fraud or any other information required by the credit reference databank. 26 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] Administrative penalty (7) The Bank may require any savings and credit institution or scheme and any other entity engaged in the extension of credit to report any information required by the credit reference databank. (8) The Bank shall have and exercise powers to license and regulate operations of private credit reference bureaux that access information from the credit reference databank. (9) The clients of institutions providing information to the Bank shall execute a written consent to the institutions to obtain from exchange with or disclose information relating to the clients to banks, financial institutions or credit reference bureaux. (10) The information collected, exchanged with or disclosed to banks, financial institutions or credit reference bureaux shall be used only for the purpose of verifying accuracy of the information, conducting credit investigations and executing and performing loan or credit agreement.
49
(1) Where a private credit reference bureau is found
Verify source ↗

AI-assisted research summary: The Bank may penalize or revoke a private credit reference bureau’s licence if it seriously or repeatedly breaches consumer protection rules or gives required incorrect information. The Bank may also use the databank for monitoring, and banks and financial institutions may request credit information subject to filing signed loan applications for Bank review.

49.–(1) Where a private credit reference bureau is found involved in gross or repeated violation of 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 of not less than five hundred thousand shillings for every day during which the non-compliance continues or withdraws its licence. (2) The Bank may use the credit reference databank to monitor the credit activities of any individual institution and the credit market for purposes of publication of periodical information. (3) The banks and financial institutions may request information from the credit reference databank or a credit information bureau regarding payment record of prospective clients, and in relation therewith banks and financial institutions shall observe that, written loan applications are signed by prospective client and filed for review by the Bank in the course of periodic examinations. 27 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] External reserves, gold and foreign exchange Reserve of external assets
50
(1) The Bank shall, subject to the provisions of this Act,
Verify source ↗

AI-assisted research summary: The Bank must formulate, determine, and implement exchange rate policy in the United Republic, and the Governor must consult the Minister on exchange rate policy and major draft decisions.

50.–(1) The Bank shall, subject to the provisions of 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. (2) In order to ensure a smooth and effective coordination with the Government’s economic policy, the Governor shall consult with the Minister on the exchange rate policy and on any major draft decision on the exchange rate policy with reasons thereon.
51
(1) The Bank shall use best endeavors to maintain a
Verify source ↗

AI-assisted research summary: The Bank must maintain a reserve of external assets at least equal to four months’ import and international transaction requirements, and it may add certain internationally recognised reserve assets.

51.–(1) The Bank shall use best endeavors to maintain a reserve of external assets at a level which is, at minimum, equal to four months imports requirements and the requirements of international transactions of the United Republic for the same period of time. (2) Subject to the provisions of subsection (4), the reserve of external assets shall consist any of the following: (a) gold; (b) foreign exchange in the form of: (i) demand or time deposits with foreign central banks or with the Bank’s agents or correspondent abroad; (ii) documents and instruments customarily used for the making of payments or transfers in international transactions; (iii) notes or coins; and (c) securities or guarantees by foreign governments or international institutions and organisations. (3) The Bank shall determine the type and form of foreign exchange and the kinds of securities which may be held in the reserve of external assets. (4) The Bank may include in its reserve of external assets any internationally recognised reserve assets being a reserve asset not referred to in subsection (2), including: (a) the reserve position of the United Republic in the International Monetary Fund; and 28 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] Dealing in gold and foreign currencies (b) holdings and special drawing rights of the United Republic, which the Bank, after consultation with the International Monetary Fund, considers suitable for inclusion in the reserve.
52
(1) Subject to the provisions of this section, the Bank may
Verify source ↗

AI-assisted research summary: The Bank may deal in gold and foreign exchange, and may conduct foreign exchange transactions with specified counterparties, subject to this section.

52.–(1) Subject to the provisions of this section, the Bank may: (a) import, export, buy, sell, hold or otherwise deal in gold; (b) acquire and transfer balances in foreign currencies, hold balances with foreign central banks or with the Bank’s agents or correspondents abroad, and invest balances in marketable foreign securities; and (c) acquire, hold, transfer, and effect transactions of any kind in foreign exchange. (2) The Bank may engage in foreign exchange transactions with- (a) banks and financial institutions; (b) the Governments; (c) a public authority; (d) foreign central banks, foreign banks or foreign financial institutions; (e) foreign governments or agencies of foreign governments; (f) 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 authorised 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. Exchange control
53
The Bank shall perform functions in the administration of
Verify source ↗

AI-assisted research summary: The Bank must perform functions under laws controlling foreign exchange and gold transactions.

53. The Bank shall perform functions in the administration of any law relating to the control of the import, export, purchase, sale or other transaction in foreign exchange and gold as may be stipulated thereof. 29 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] Payments agreements
54
The Bank shall administer any payments agreement entered
Verify source ↗

AI-assisted research summary: The Bank must administer any payments agreement entered into by the Governments.

54. The Bank shall administer any payments agreement entered into by the Governments. Fiscal and depository for Government’s transactions, etc.
55
The Bank shall be the fiscal agent for the Governments’
Verify source ↗

AI-assisted research summary: The Bank must act as the fiscal agent for the Government’s transactions with certain international financial organisations or institutions.

55. The Bank shall be the fiscal agent for the Governments’ transactions with international financial organisations or institutions of which the Government of the United Republic is a member. Miscellaneous powers and functions Relations with private enterprises, organisations and bodies
56
(1) The Bank may open accounts for, accept deposit from,
Verify source ↗

AI-assisted research summary: The Bank may provide banking services for foreign central banks, foreign banks, foreign financial institutions, and banks or institutions generally; certain foreign currency reserves are immune from legal proceedings.

56.–(1) The Bank may open accounts for, accept deposit from, and collect money and other monetary claims for and on account of foreign central banks, foreign banks and foreign financial institutions and may generally act as banker to banks and institutions. (2) A foreign currency reserves held on deposit or managed by the Bank shall be immune from any legal proceedings including an order for execution, attachment or any other similar process issued by any court for enforcing payment by the Bank in relation to foreign currency reserves.
57
(1) The Bank shall, for the purposes of compilation and
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AI-assisted research summary: The Bank must collect information for balance-of-payments and financial-sector statistics, and certain offices, banks, institutions, and private bodies must provide information when requested.

57.–(1) The Bank shall, for the purposes of compilation and publication of the balance of payments statistics meeting international standards, compile information from public offices and from banks and financial institutions and, to the extent strictly necessary, from private enterprises, organisations and bodies. (2) Public offices, banks and financial institutions shall, at a request by the Bank, provide any information the Bank considers necessary for compilation of any monetary, financial or other statistics on the financial sector. (3) A private enterprise, organisation and body shall, at a request of the Bank, provide any information the Bank considers necessary for the compilation of the balance of payments statistics. (4) Where a bank or financial institution fails to comply with any requirement of this section, the Bank may impose on the relevant bank or financial institution a penalty of not exceeding five hundred thousand shillings for every day during which 30 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] Relations with corporations Interest on deposit balances and blocked accounts Advice to Governments non-compliance continues and the charge may be recovered by deduction from any balance of, or moneys owing to the bank or financial institution concerned or by institution of a suit. (5) A private enterprise, organisation or body that fails to comply with a requirement by the Bank made pursuant to the provisions of 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
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AI-assisted research summary: The Bank may buy, hold, sell, or acquire an interest in certain corporations, but its total holdings must not at any time 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 of the Bank, subscribe to, hold, and sell shares or acquire an interest in any corporation established for the purposes of promoting the development of financial markets or of improving the financial machinery and payment systems in the United Republic. (2) The total value of the Bank’s holding of any shares or interest shall not at any time exceed fifty percent of the aggregate of the Bank’s paid up capital and of its General Reserve Fund.
59
(1) On minimum cash balances required, the Bank may
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AI-assisted research summary: The Bank must not pay interest on balances when minimum cash balances are required, but it may pay market-rate interest on blocked accounts if circumstances make that desirable and prudent.

59.–(1) On minimum cash balances required, the Bank may not pay interest on balances deposited with the Bank. (2) The Bank may, where circumstances render it desirable and prudent so to do, pay interest at market rate, and subject to qualification as it may determine, on the balances in any amount with the Bank which is a blocked account within the meaning of the prevailing foreign exchange regulations.
60
(1) The Bank shall advise the Governments when in the
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AI-assisted research summary: The Bank must advise the Governments when it thinks a matter related to its functions could affect fiscal policy, national economic growth, or the Bank’s objectives.

60.–(1) The Bank shall advise the Governments when in the Bank’s opinion, any matter relating to its functions, powers and duties is likely to affect the fiscal policy and the national economic growth or the achievement of the principal objectives of the Bank. (2) The Governments may seek opinion and advice on draft Governments’ budget, financial legislation and any other matter affecting the functions, powers and duties of the Bank or any proposals, measures or transactions relating thereto, and the Bank shall give the advice accordingly. 31 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] Prohibited operations
61
(1) The Bank shall not
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AI-assisted research summary: The Bank is barred from trading, taking direct interests in certain undertakings, buying or leasing immovable property except for Bank premises, and guaranteeing loans, advances, or investments unless authorized. If it acquires an interest in the allowed case, it must dispose of it as soon as suitable.

61.–(1) The Bank shall not- (a) save as expressly authorised by this Act, engage in trade, own or acquire any direct interest in any commercial, agricultural, industrial or similar undertaking except in the course of obtaining satisfaction for any debt due to the Bank; (b) purchase, acquire or lease immovable property for any purpose except as premises for the Bank, including reasonable provision for anticipated future requirements or for the use by members of the Board or its staff; (c) guarantee any loan, advance or investment unless expressly authorised by this Act. (2) Where, in the case provided in paragraph (a) of subsection (1), the Bank acquires any interest, it shall dispose of the same at the earliest suitable opportunity. PART V MISCELLANEOUS PROVISIONS Limitation on external holdings

Part

PART V

62
The Governments shall not hold or maintain any reserve
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AI-assisted research summary: The Governments must not hold or maintain reserves of external assets, except as needed for working balances.

62. The Governments shall not hold or maintain any reserve of external assets except to the extent necessary for working balances. Prohibited banking names
63
Save with the written consent of the Bank, a bank shall
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AI-assisted research summary: A bank may not be registered under a law using a name with “central”, “state”, “government”, or “reserve” unless the Bank gives written consent.

63. Save with the written consent of the Bank, a bank shall not be registered hereafter under the provisions of any law, by a name which includes any of the words “central”, “state,” “government” and” reserve”. Banks, etc., deemed to be public service for certain purposes
64
In the discharge of its functions under this Act and in the
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AI-assisted research summary: The Bank, Board members, and Bank staff must be treated as holding office in the public service when carrying out the Act or administering any law.

64. In the discharge of its functions under this Act and in the administration of any law, the Bank, members of the Board and staff of the Bank shall be treated as holding office in the public service. Immunity of members of Board, staff and employees of Bank
65
(1) Notwithstanding the provisions of any other law, an
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AI-assisted research summary: Bank members, officials, and employees are protected from proceedings for good-faith acts done under the Act, and certain staff with a conflict must report the matter to a supervisor and must not decide it.

65.–(1) Notwithstanding the provisions of any other law, an action or other proceedings shall not lie or be instituted against any member of the Board of the Bank, official or employee of the 32 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] Bank for or in respect of any act or thing done or omitted to be done in good faith in the exercise of powers conferred by this Act. (2) An official or other member of the staff authorised to make decisions on behalf of the Bank having an equivalent interest in any matter involving the Bank shall be required to report that matter to the supervisor and shall not be entitled to make decisions related to that matter.
66
Notwithstanding anything to the contrary in any written
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AI-assisted research summary: If a judgment or order is obtained against the Bank, execution, attachment, or any similar process must not be issued against the Bank or its property; instead, the Bank must pay the awarded amounts to the entitled person.

66. Notwithstanding anything to the contrary in any written law, where any judgement or order has been obtained against the Bank, an execution or attachment or process in whatever nature, shall not be issued against the Bank or against any property or asset of the Bank, but the Bank shall cause to be paid the amounts as may, by judgement or order, be awarded against the Bank to the person entitled.
67
(1) The assets of the Government including any local or
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AI-assisted research summary: Government assets held by the Bank are immune from enforcement proceedings, and courts must not issue execution or attachment orders for payment by the Bank in relation to those assets.

67.–(1) The assets of the Government including any local or foreign currency held on deposit or managed by the Bank, shall be immune from any enforcement proceedings and an execution, attachment or any other similar process shall not be issued by any court for enforcing payment by the Bank in relation to any asset held on account of the Government and a person shall not be individually liable under any order for payment by the Bank or any officer of the Bank in relation to the asset held on account of the Government. (2) Where in relation to any asset of the Government held by the Bank proceedings have been instituted in any court for enforcement or procuring execution by attachment or any other similar process, the provisions of the Government Proceedings Act, shall apply mutatis mutandis in relation to proceedings against the Bank or any officer of the Bank.
68
In the event of conflict arising from the provisions of this
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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 of conflict arising from the provisions of this Act and any other Act relating to the exercise of power and performance of functions of the Bank, the provisions of this Act shall prevail. Immunity of Bank Immunity of assets managed by Bank Cap. 5 Overriding effect 33 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG. THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023] Waiver for non- compliance
69
The Board shall prescribe rules to be applied by the Bank
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AI-assisted research summary: The Board may set rules for the Bank about waiving compliance or penalties for non-compliance, and important matters must be referred to the Board.

69. The Board shall prescribe rules to be applied by the Bank on the waiver of compliance or penalties for non-compliance of the provisions of this Act or regulations and any matter that is economically or otherwise important shall be referred to the Board for determination. Powers to make regulations
70
(1) The Minister may make regulations necessary or
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AI-assisted research summary: The Minister can make regulations to give effect to the Act, and the Board can make by-laws, rules, directions, orders and circulars about how the Act’s objective is carried out.

70.–(1) The Minister may make regulations necessary or desirable to give effect to the provisions of this Act. (2) Regulations made under subsection (1) shall be Repeal and savings Act No. 1 of 1995 published in the Gazette. (3) The Board may make by-laws, rules and issue directions, orders and circulars regulating the manner by which the objective of this Act may be carried on. (4) The by-laws, rules, directions, orders and circulars issued under subsection (3) may not be published in the Gazette.
71
(1) [Repeals the Bank of Tanzania Act]
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AI-assisted research summary: This section repeals the Bank of Tanzania Act, but keeps certain things made under it in force for the time being.

71.–(1) [Repeals the Bank of Tanzania Act]. (2) Notwithstanding the repeal of the Bank of Tanzania Act- (a) regulations, rules, orders, by-laws, directions or other subsidiary legislation made, given or issued under that Act and which are in force immediately before the date of coming into operation of 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) appointments made under that Act and which have not been revoked immediately before coming into operation of this Act shall remain in force until they are revoked or fresh appointments are made under this Act; and (c) legal proceedings instituted or orders made under that Act shall continue and be deemed to be proceedings or orders made under the provisions of this Act. 34 ©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.

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The Bank of Tanzania Act

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Provisions of The Bank of Tanzania Act

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