Tanzania’s National Bank of Commerce hit with fine over data rules breach

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Tanzania’s National Bank of Commerce hit with fine over data rules breach

6:25 CAT | 29 Aug 2019

National Bank of Commerce Ltd branch. The bank is majority owned by South African lender Absa.[Picture: The Citizen]

Tanzania’s National Bank of Commerce Ltd has been fined Tsh1 billion ($435,000) for failure to establish a data centre in the country, the second bank in two months to be penalized for such a breach by the central bank.

The central bank directed banks and financial institutions in 2014 to establish primary or secondary data centers in country, warning of hefty fines for non-compliance as it tightened regulatory oversight of the sector.

The country’s financial services sector has been hit by a spike in bad loans, which have stifled the growth of credit to the private sector.

The central bank fined Diamond Trust Bank Tanzania Limited 1 billion shillings last month for breaching the regulatory rules on data and service availability.

It issued a new directive last week that all banks and financial institutions must now establish a primary data center within three months or face an increased fine of Tsh5 billion.

“The Bank of Tanzania (BoT) has imposed a penalty charge of one billion shillings to National Bank of Commerce Limited (NBC) for failure to implement directives to establish either a primary or secondary data centre in the country,” the central bank said in a statement sent to Reuters on Thursday.

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It said the rules were aimed at ensuring banks’ operations when they are cut off from a

Source: Reuters