The Banking Confidentiality Law in Tanzania: An Appraisal

  • Eugene E. Mniwasa* Institute of Finance Management, Dar es Salaam, Tanzania: mniwasa@ifm.ac.tz; mniwasa@gmail.com

Abstract

The banker’s duty of confidentiality to its customers, which is founded on the contract between banks
and their customers, is one of the pillars governing the banker-customer relationship in Tanzania. The
banks have the obligation to keep information concerning their customers’ affairs confidential. The law
permits the duty of confidentiality to be lifted in certain specific situations including where information
related to customers’ transactions is required to prevent or control unlawful activities such as money
laundering, terrorism, drug trafficking and corruption or to facilitate the conduct of legal proceedings in
courts. This article argues that the legal compulsion to disclose affairs of a bank customer in Tanzania
is moving to the direction that undermines banking confidentiality. There is a need for the government
of Tanzania to reform the law in order to establish a legal framework that strikes a balance between the
need to protect legitimate interests of customers of banks and the necessity to fight against or curb
unlawful activities committed through the use of banks.

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Published
2017-03-31
How to Cite
MNIWASA*, Eugene E.. The Banking Confidentiality Law in Tanzania: An Appraisal. The African Journal of Finance and Management, [S.l.], v. 24, n. 1 & 2, mar. 2017. ISSN 0856-6372. Available at: <http://journal.ifm.ac.tz/index.php/AJFM/article/view/348>. Date accessed: 19 nov. 2017.
Section
African Journal of Finance and Management