NewsLegal Alert: 12 months for Microfinance Companies in Tanzania to comply with Microfinance Act or face Deregistration

Effective 01^st November, 2019 Microfinance Companies in Tanzania have 12 months to comply to the licensing requirements of the Microfinance Act, Cap. 407. According to Regulation 12 of the Microfinance (Non-Deposit Taking Microfinance Service Providers) Regulations, 2019, Microfinance Companies that were operating business before the commencement of the Microfinance Act and fails to meet the licensing within 12 months after the commencement of the Microfinance Act are required to close their business and cease to operate Microfinance business. Failure to do so is an offence punishable by fine of up to TZS 100Million or imprisonment of up to 5 years or to both fine and imprisonment.