The Central Bank of Tanzania has issued a circular requiring all banks and financial institutions operating in the country to set up local primary data centers.
Speaking on the direction, Bernard Kibesse, Deputy Governor, BoT, said:
“The bank of Tanzania has noted with serious concern that most of the banks and financial institutions have not provided a true position on compliance with the requirements to put in place a primary or secondary data center in Tanzania.”
The circular further states:
“Any bank or financial institution, which will be found not to have complied with the above requirements, shall be liable to a penalty of 5 billion shillings (Approx. $2.1M).”
The central bank says it has issued three previous circulars since 2014 for primary and secondary data centers to be located in Tanzania. The regulator has now re-issued 3-month ultimatum otherwise it will impose penalties on institutions that fail to comply.