Regulatory Alerts2025-01-01
Guidance Note on Change of Ownership, Lease of Licence and Closure of Business by Tier 2 Microfinance Service Providers, 2025
The Bank of Tanzania mandates Tier 2 Microfinance Service Providers to obtain prior regulatory approval for shareholding changes and license leasing, while requiring written closure notifications at least seven days before operations cease. Permanent closures demand comprehensive pre-closure compliance, including thirty-day stakeholder notifications, full settlement of statutory obligations and borrower collaterals, and established post-closure contact mechanisms. By standardizing application procedures and documentation, the Guidance Note empowers the Bank to revoke licenses or enforce administrative measures against non-compliant providers, thereby protecting customer and shareholder interests.
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