By Azania Post Reporter
DEPOSITORS and creditors of closed five local banks have been advised to remain patient as the liquidator puts arrangement to handle their affairs.
Following Bank of Tanzania's revocation of banking business licence of Covenant bank for Women (Tanzania), Efatha Bank, Njombe Community Bank, Kagera Farmers' Cooperative Bank and Meru Community Bank and subsequent appointment of the Deposit Insurance Board (DIB) as the liquidator effective 4th January.
According to Emmanuel Boaz who is DIB Director they shall in due course , inform depositors, creditors and debtors on payout plan, debt collection and other similar arrangement in line with the provision of the law.
However the reimbursable amount shall be in accordance with the limit provided under the Banking and Financial Institutions Act 2006, which is up to 1.5m/- per depositor.
Recently the DIB paid depositors of the troubled FBME bank their money after waiting for a number of days.
Insured deposit at the FBME bank who have claims of not more than shillings 1.5million got their payment.
The reimbursement of insured deposits to depositors will be made at all branches of the former FBME Bank, except Samora Branch at the city centre whose customers will be served at Kinondoni branch at business hours.
According to statement required documentation includes a properly filled claim Form in duplicate which is available at the head office and all branches of the bank.
Others are the depositor’s Account Identity Card and proper identification of the depositor namely the National ID, Passport and for Tanzania nationals, they may submit the Tanzania Voter Registration ID, Driver’s licence or Introduction letter from Local Government Authority.
Every bank and every financial institution which is licenced to carry on banking business in the country is required by law to be a member of the DIB.
It said in a statement that payment of depositors’ claims in excess of 1.5m/-will be dealt with after collection of liquidation proceeds in accordance with the Banking and Financial Institutions Act, 2006.
In April last year BoT revoked the business licence of FBME Bank and placed it under liquidation after it was accused by the U.S. government of large-scale money laundering.
The central bank took over the management of FBME Bank in July 2014 following a report from the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) describing the bank as a “primary money laundering concern.”