The Tanzanian subsidiary of Diamond Trust Bank has been fined TSh1 billion (KSh44.8 million) for failing to set up a data center in the country as required by law. In 2014 and 2016, the Bank of Tanzania instructed all banks and financial institutions in the country to set up primary or secondary data centers in Tanzania to ensure financial services are available at all times.
In a press statement, the regulator said, “The Bank of Tanzania has imposed a penalty charge of TSh1 billion to Diamond Trust Bank Tanzania Limited for failure to implement a directive to establish a data center in Tanzania.”
“In addition to the punishment captioned above, an additional charge of 10% of the penalty amount will be imposed to DTB on each month if the noncompliance continues,” read the statement.
Tanzania has increased regulations in the financial sector and other areas, a move that has dissuaded investors from investing in the country. The country’s economic expansion has slowed down due to the tough regulations imposed on businesses by the current President John Magufuli.
DTB owns 65.7 percent of the shares in the Tanzanian lender. The bank is DTB’s best-performing subsidiary outside Kenya. In 2018, it contributed 14.5 percent to DTB’s overall revenue.
