Tanzania Regulatory Pack
mfi_reg_tanzania covers the four tiers of microfinance under the Microfinance Act 2018: Tier 1 (deposit-taking), Tier 2 (non-deposit credit-only), Tier 3 (SACCOS), Tier 4 (community microfinance).
Tier structure
The Microfinance Act 2018 created a four-tier framework. The pack handles Tiers 1, 2, and 3; Tier 4 community MFIs are exempt from formal returns but must keep records the pack helps maintain.
| Tier | Description | Returns |
|---|---|---|
| Tier 1 | Microfinance bank (deposit-taking) | MFI-1 monthly + MFB-A annual |
| Tier 2 | Non-deposit credit-only | MFI-2 quarterly |
| Tier 3 | SACCOS registered under Cooperative Societies Act | MFI-3 quarterly + TCDC return |
| Tier 4 | Community microfinance groups | Record-keeping only |
MFI-1 monthly prudential return
Tier 1 deposit-taking MFIs file MFI-1 monthly. The return covers capital adequacy (12% minimum), liquidity (20% minimum), large exposures (25% of core capital cap), asset quality (PAR>30, restructured loans), and earnings.
- Section A: Statement of financial position
- Section B: Statement of comprehensive income
- Section C: Capital adequacy computation
- Section D: Liquidity computation
- Section E: Large exposures schedule
- Section F: Asset quality and provisioning
- Section G: Off-balance-sheet exposures
FIU Tanzania
The Financial Intelligence Unit under POCA (Proceeds of Crime Act) accepts STRs and CTRs above TSh 20,000,000. Format is goAML XML, lodgement via FIU portal.
TRA tax integration
Tanzania Revenue Authority requires withholding tax on interest at 10% for resident individuals. VAT is generally exempt for interest income. The pack files monthly WHT via TRA e-Filing portal CSV export.
# Tanzania WHT computation
rate = 0.10 # TRA residents
wht = monthly_interest_accrual * rate
# Note: Tier 3 SACCOS dividends on member shares are exemptWorked scenarios
Scenario — Dar es Salaam MFB files March MFI-1
| Character | Role |
|---|---|
| Aisha Hassan | Compliance Officer |
| Kimani Mwangi | CFO (Kenyan secondee) |
| Samuel Kibet | MLRO |
Timeline
- 31 Mar, 23:59: March books closed. (Net loans TSh 28.4B, deposits TSh 19.2B.)
- 1 Apr, 02:00: MFI-1 scaffolded. (State=open.)
- 3 Apr, 09:00: Aisha opens; engine populates Section A through G. (CAR 14.2%, liquidity 23.1%, PAR>30 5.8%.)
- 3 Apr, 11:00: Exception: large exposure to single borrower at 26% (over 25% cap). (Officer alerted; borrower is a hotel chain with TSh 1.2B facility.)
- 4 Apr, 14:00: Kimani restructures to bring within cap (partial syndication to peer bank). (Exposure recomputed at 22%; exception clears.)
- 8 Apr, 10:00: Aisha signs. (State=ready.)
- 9 Apr, 09:00: Samuel reviews AML exceptions in parallel. (3 STRs queued; lodged separately to FIU.)
- 9 Apr, 15:00: Kimani counter-signs and lodges via BoT portal. (Reference MFI1-2026-03-DSM-0019.)
- 15 Apr, 14:00: BoT acceptance. (State=accepted.)
Outcome — Return accepted on time. Large-exposure remediation in Step 4 was forced by the pack's pre-lodgement validation, preventing a likely BoT supervisory letter.
Reference
BoT minimum prudential ratios
| Ratio | Minimum | Pack alert threshold |
|---|---|---|
| Core capital adequacy | 10% | 12% |
| Total capital adequacy | 12% | 14% |
| Liquidity | 20% | 25% |
| Large exposure (single) | 25% of core capital | 23% |
| Large exposure (aggregate) | 800% of core capital | 750% |
| Insider lending | 25% of core capital | 23% |
Troubleshooting
| Symptom | Likely cause | Fix |
|---|---|---|
| MFI-1 Section D liquidity computation negative. | Demand deposits booked to a non-liquid sub-account. | Reclassify demand deposit account, tag as liquid in BoT taxonomy. |
| FIU upload returns 'invalid taxpayer ID'. | FIU expects TIN with check digit; member missing digit. | Run TIN validator wizard; correct affected members. |
| TRA WHT export shows zero remittance though loans are interest-accruing. | WHT journal not configured. | Settings > Accounting > Journals, create journal type=other, tag tra_wht, link in mfi_reg_tz.tra.wht_journal. |