Tanzania’s central bank has announced measures to tighten control over mobile money in the East African country. The new financial services regulations, the Bank of Tanzania said, were aimed “at improving the oversight of mobile payments and the service providers that facilitate them.”
The bank said in a statement that the new regulations would be implemented in June.
According to the bank, the new regulations were drafted last year “in a bid to enhance the sector’s stability and security.”
With mobile banking on the rise in Tanzania and across East Africa, central banks have been looking at new ways of streamlining and making the process better for users and telecom operators, as well as ensuring the banking sector is not lost in the process.
The bank says “the lack of supervision in the sector leaves room for the possibility of illicit activities such as money laundering or the financing of terrorism.”
Tanzania has witnessed an increase in the number of users engaging mobile money platforms and the central bank said it was time to create better systems for the operators and customers.