Payment Systems (Licensing and Approval) Regulations, 2015 (GN No. 446 of 2015)

The Payment Systems (Licensing and Approval) Regulations, 2015 (Government Notice No. 446 of 2015), made by the Bank of Tanzania (BoT) under the National Payment Systems Act, 2015, establish the procedural and prudential framework for entry into Tanzania's payment systems market. Gazetted alongside the Electronic Money Regulations on 16 October 2015, they specify who may operate a payment system or provide payment services, how to apply, and the conditions attaching to a licence or approval. Scope and applicability: the Regulations apply to any person seeking to operate a payment system or provide payment services in Tanzania. A person eligible to operate a payment system must be a body corporate incorporated under the laws of Tanzania. The Act and Regulations distinguish two routes: a bank or financial institution operating a payment system by virtue of its banking business obtains the BoT's approval under section 15(2)(a) of the Act; a non-bank or non-financial institution must obtain a licence under section 15(2)(b). Under Regulations 22 and 29, payment system providers are prohibited from engaging, partnering or contracting with other entities for payment system business before obtaining the requisite licence or approval. Core obligations: applicants must satisfy fit-and-proper requirements for directors and significant shareholders, demonstrate adequate minimum capital calibrated to the category of payment system or service sought, and submit business plans, governance arrangements, risk-management and security frameworks, and AML/CFT controls. Licences and approvals may be granted subject to conditions, are time-limited and renewable, and may not be transferred without BoT consent. The Regulations set out application fees, processing timelines and grounds for refusal. Supervision and enforcement: the BoT may impose conditions, require remedial action, and suspend or revoke a licence or approval for non-compliance, false information, or conduct prejudicial to the payment system. Operating without the requisite authorisation is an offence under the parent Act. Together with the Electronic Money Regulations, this instrument forms the operational backbone of payment system entry control in Tanzania and applies to mobile money operators, switches, aggregators and other payment service providers.

1. 1Only bodies corporate incorporated in Tanzania may operate a payment system
2. 2Two-track authorisation: banks/financial institutions obtain BoT approval (s.15(2)(a)); non-banks obtain a licence (s.15(2)(b))
3. 3Regulations 22 and 29 prohibit entering partnerships or agreements for payment-system business before obtaining a licence or approval
4. 4Fit-and-proper assessment of directors and significant shareholders
5. 5Minimum capital calibrated to the category of payment system/service sought
6. 6Application requirements: business plan, governance, risk-management, security and AML/CFT frameworks; licences conditional, time-limited, non-transferable without consent
7. 7BoT may refuse, condition, suspend or revoke authorisations and pursue offences for unlicensed operation