The Tanzania Bankers Association recently published the Tanzania Bankers Association Code of Conduct which has been effective since September 2019. In this article, we review the significant changes brought by the Code of Conduct and outline what this means for the members of the Tanzania Bankers Association, including the new sanctioning power provided to them.
The key issue, which will be addressed later in more detail, is that the Tanzania Bankers Association Code of Conduct (the Code) provides sanctioning power to the Tanzania Bankers Association (the TBA). Ordinarily such sanctioning power is vested only in the key regulator, namely the Bank of Tanzania (the BoT), however the significant change here is the empowerment of TBA in terms of sanctioning power.
Pursuant to the Preamble of the Code, the Code 'is adopted and implemented with the overall objective of ensuring strict adherence to best banking practices and strong commitment to highest ethical and professional standards in the banking industry in Tanzania'. The Code is applicable to all TBA members (Members), their non-executive directors, executive directors, managers at all levels and howsoever designated, officers and employees including full-time, part time, temporary, casual employees and out-sourced service providers.
The TBA is an association of banks and financial institutions formed in 1995 with the following strategic objectives:
To accomplish the above, the TBA works very closely with other stakeholders including the Government, regulatory agencies such as the BoT, the media and the general public.
The TBA's Governing Council is mandated to enforce the Code which is binding on Members and employees who have subscribed to it (Employees). An Employee has been defined in the Code as an individual employed / appointed / engaged / recruited by a Member including non-executive directors.
Members are required to acknowledge the provisions of the Code and undertake to have in place a mechanism to ensure that its Employees comply with the Code by signing the Attestation Form to the Code of Conduct for Members prescribed in the Code.
The Code puts an obligation on Members to, among other things:
Members have an obligation to ensure that Employees, among other things:
The Governing Council may sanction a violating Member by issuing a warning, censure, suspension or by reporting the violation to the regulator.
It is unclear whether Members will have a right to be heard before they are sanctioned or whether they will be able to seek recourse when aggrieved by said sanction.
Employees will be sanctioned by Members in accordance with Members' internal disciplinary procedures and underlying employment and labour laws.
This briefing is prepared for clients and contacts of Clyde & Co Tanzania. We aim to keep our clients abreast of developments in Tanzania as they happen and if you have any questions on the issues raised above please contact us directly.
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