Regulatory Alerts2021-01-01
Outsourcing Guidelines for Banks and Financial Institutions 2021
The Bank of Tanzania issued the 2021 Outsourcing Guidelines to establish a comprehensive regulatory framework governing how banks and financial institutions manage third-party service arrangements. The guidelines mandate prior regulatory approval for material outsourcing, prohibit the delegation of core management functions and primary offshore data centers, and require robust due diligence, risk assessment, and legally enforceable contracts with explicit audit and data security provisions. Financial institutions must maintain active board and senior management oversight, implement comprehensive business continuity plans, and ensure continuous monitoring to guarantee that outsourcing does not impair customer obligations or regulatory supervision.