The Internal Control and Internal Audit Regulations 2004

This document presents the regulations of the Banking and Financial Institutions Act of Tanzania, pertaining to internal control and internal audit of financial institutions.

These regulations shall apply to all banks, financial institutions and financial cooperative societies licensed by the Bank of Tanzania.

The articles of the regulation state:

• All banks and financial institutions shall implement an effective system of internal controls to reduce fraud, misappropriation and errors, and to mitigate other risks faced by the institution;
• All material risks that could adversely affect the achievement of the institutions goals shall be recognized and continually assessed;
• Monitoring of key risks shall be a part of the daily activities of all operational and business areas of the institution, including control areas and the internal audit;
• The chief executive officer or general manager shall be ultimately responsible for the institution's organizational and procedural controls;
• Banks and financial institutions shall set up a permanent audit committee composed of three to five non-executive directors, who are independent of management and have a background compatible with their duties;
• Banks and financial institutions shall appoint an internal auditor whose function is to permanently evaluate the effectiveness of the internal control system.