Why BoT wants names of sacked bank workers

Thursday March 04 2021
By Rosemary Mirondo

Dar es Salaam. In a move aimed at ensuring that banks and other financial institutions in Tanzania are manned by staff of high integrity, the Bank of Tanzania (BoT) has decided to establish a database of employees with a proven record of involvement in gross misconduct or fraud.

BoT banking supervision manager Sadati Musa said the move was part of the central bank’s regulatory and supervisory mandate.

Hence, banks and financial institutions in the country are required to submit to the regulator in a prescribed format information pertaining to staff who were or will be terminated because of gross misconduct or fraud.

“Information covering the period from January 1, 2011 to date, to be submitted within ten days after receiving these instructions,” he said in a statement seen by The Citizen.

He said going forward information shall be submitted within seven days from the date of conclusion of staff termination process including completion of internal appeal process or from the date when staff resign from employment during the disciplinary hearing process.

This is according to the overall mandate of BoT as provided under the Banking and Financial Institutions Act, 2006 and its regulations. It aims at vetting of bank and financial institutions staff.


“Given the importance of banks and financial institutions for the economic development of our country, especially in managing customer deposits and distributing them in key sectors of the economy through lending, the central bank seeks to ensure that banks and financial institutions are managed and led by honest employees at all times,” he said.

Mr Musa said in order to achieve this, the central bank has decided to collect information on all employees who have been laid off for various reasons related to integrity.

The purpose of the BoT is to ensure that such employees are not employed in banks and other financial institutions and cause further losses.

“This will be done by the Central Bank seriously and especially after it is satisfied that there were compelling reasons for their dismissal to reduce the likelihood of bullying,” he said.

Mr Musa noted as a result of various audits conducted by BoT in banks and financial institutions, the central bank has found that integrity offenses have been committed for a long time within those institutions and employees who have made mistakes have been moving from one bank or financial institution to another.

“Various measures have been taken by one bank without consultation with another. This has caused some unscrupulous employees to move from one bank to another. Thus, by receiving information from the last 10 years from all banks, the central bank will have the opportunity to identify those employees and thus take appropriate action,” he said.

“It is also worth noting that over the past decade, there has been a significant increase in the number of banks and banking services, especially electronic networks, which has improved banking services but also increased the challenges of some employees wanting to profit from fraudulent means.”

He said the document issued to banks and financial institutions means that employees of banks and financial institutions must be honest in running and managing such institutions in all aspects, including protecting customer deposits and issuing loans.

He stressed that the document was not intended to discriminate against employees of banks and financial institutions, so anyone who is responsible for harassing an employee by giving false information will be prosecuted in accordance with the stated Act.