Research Report Published
This paper reviews banking laws in Tanzania in relation to electronic banking and technological development. It is more than a decade now, since Tanzania engaged in the use of electronic banking. Since electronic banking has higher risks and much used by banks, communication companies and their customers, it is just reasonable to have the law adequately address and protects the electronic banking transactions. Unfortunately, banking laws currently in force are inadequately provide for electronic banking. For example the Bank of Tanzania Act (BoT Act) gives power to the Bank of Tanzania to: establish payment clearing and settlement system; and; make rules and regulations to govern the payment system, but the clearing and settlement system referred designed to save inter-bank transactions and therefore other types of electronic banking are not covered. Furthermore, the rules and regulations bind only participants or members of such payment clearing and settlement system. The BoT Act also gives power to the minister responsible for financial affairs of the United Republic of Tanzania to make regulations so as to give effect to the objectives of the BoT Act. However, regulation on electronic banking has not been made.
In 2000 the BoT issued guidelines on payment card to regulate payment through Automated Teller Machine (ATM) and Point of Sale (POS), but the guidelines have no legal force. This situation definitely create some practical legal issues that need attention. It is in this spirit that the author embark on analysing the Tanzania legal regime on electronic banking. The author employed library research used to acquire primary data by surveying the laws of Tanzania relating to banking and also for obtaining secondary data through reading of books, journals, articles and websites. Furthermore, the author have also employed interview banking personnel to enrich primary data. This study shows that, due to inadequacy of the law regulating electronic banking, the undertakings emanate some practical issues which calls for an amendment of the Tanzania legal framework or the enactment of specific legislation to not only electronic banking, but also other cyber laws which will facilitate and protect electronic banking and the banking system in general.