The Central Bank of Tanzania has sounded a warning against banks and financial institutions that lack a primary data center in Tanzania.
The Bank now requires financial institutions in the country to reconfirm their data compliance by the end of August. Failure to comply will result in fines as hefty as Ksh224.5 million (Tsh 5 billion).
The Bank’s deputy noted that part of the compliance procedure will entail testing of the data centers. “In this regard, you are required to reconfirm to the bank your compliance status within seven days from the date of this circular and be ready for your center to be tested” reads the circular dated 23 August.
The Central Bank gave special attention to banks and financial institutions who have not disclosed the location of their primary and secondary data centers in Tanzania.
The circular from the Central Bank’s deputy governor informs that every Bank and financial institution should establish a primary data center in Tanzania.
Moreover, failure to establish such a facility will attract a Kshs 22 million (Tsh500 million) fine every month until it complies. A statement by Dr. Bernard Kibesse, the Bank’s deputy governor reads, “Any bank or financial institution, which will not comply with the requirements shall be liable to a penalty of Tsh5 billion.”
