Case study Bank of Tanzania uses FINInform to complement its RTGS FINInform is an efficient and cost-effective solution for ensuring banks comply with regulatory reporting “All the banks in Tanzania involved with cross border transactions are on the SWIFT network. With SWIFT FINInform, we automatically capture 100% of messages, without human intervention or errors.” Joseph M.B. Massawe, Strategic Planning and Performance Review, Bank of Tanzania The Bank of Tanzania was established Benefits A new anti-money laundering law meant that the central bank needed to track the in 1966 to perform all the traditional Security transaction flows in and out of Tanzania functions of a central bank. Reliability in order to report to the newly created In 2006 the Bank’s role was modified Availability Financial Intelligence Unit. to provide for a more responsive Automation “As a result of these requirements, we regulatory role in relation to the decided we needed to keep a database,” Reduced cost formulation and implementation of says Joseph M.B. Massawe, Strategic Support Planning and Performance Review, Bank monetary policy; and to provide for of Tanzania. “FINInform was the ideal the supervision of banks and financial mechanism to feed the database with the Business challenges institutions. required information. We were able to use The Tanzanian Real Time Gross FINInform since all the banks in Tanzania The Bank’s mission is “to maintain Settlement system has been in place are connected to the SWIFT network. price stability that is conducive since 2004. This enables us to copy actual messages, to the attainment of financial and As the Bank of Tanzania is the regulator, it going in or out of the country.” macroeconomic stability for balanced identified the need to capture information FINInform provides data on cross-border in several areas. and sustainable growth of the national transaction flows in all currencies that economy of Tanzania”. There are significant cross border trade enables the central bank to improve flows, and the central bank wanted to the country’s monitoring of inflows and The Bank reports to the Minister monitor the resulting transaction flows in a outflows and for anti-money laundering. of Finance, and keeps the Minister timely and efficient manner. It is an efficient, cost effective, and simple solution for ensuring banks comply with informed of matters pertaining to The central bank also wanted to monitor regulatory reporting. monetary and financial sector policies. increasing hedge funds pouring into Tanzania. “We decided to use All incoming and outgoing messages are “FINInform is ideal for a copied fully to the Bank of Tanzania, as FINInform, since all the shown in the diagram of FINInform. central institution to monitor banks in Tanzania are The Bank of Tanzania built an in-house cross-border payment flows,” connected to the SWIFT application to generate the reports it Michimaru Onizuka, Banking Initiatives, EMEA, network.” needs. The FINInform inflow and outflow SWIFT messages are decoded, processed and Joseph Massawe, Strategic Planning and inserted into a database, as depicted in Performance Review, Bank of Tanzania. The Bank’s immediate plan is to the diagram of the Bank’s message input deploy the specific Securities Market flows. Infrastructures and SWIFT solutions that Benefits achieved by the customer are relevant for specific broker/dealers, “The key benefit of using FINInform at Next steps custodians and settlement agents. The the Bank of Tanzania is to be able to The central bank’s plans for the future to SWIFT messaging services in mind are get timely information on cross border enhance usage of SWIFT, FINInform and FIN and InterAct. inflows and outflows, which is important other SWIFT services are to integrate the in monetary policy implementation,” says Ministry of Finance Integrated Financial For more information, please contact your Massawe. System to enable government ministries, SWIFT account manager or visit Using FINInform over SWIFT has enabled departments and agencies to make www.swift.com the Bank of Tanzania to achieve numerous payments through the RTGS using SWIFT. benefits: This will enhance efficiency, reduce — The key advantages of SWIFT are human intervention and achieve maximum the reliability and availability of the straight-through processing, mitigate risks network and improve on cash management. — The Bank appreciates the round the clock support — The Bank has been able to automate reports thanks to message standards Input Batch process Reporting “Being connected to SWIFT has enabled us to meet many challenges,” says Mr. Massawe, in particular: — Automating key business processes MT103 Parse SWIFT User Login Message — Imposing a minimum value of 5 million MT202 Tanzanian Shillings for cheques to be MT205 carried over SWIFT, thus benefiting MT102 from the high level of security of the MT200 network. Report Menu “Being connected to SWIFT Extract Field Details has enabled us to meet many challenges,” Generate Reports Joseph Massawe, Strategic Planning and Performance Review, Bank of Tanzania. Solution overview BSIS “FINInform is ideal for a central institution Database to monitor cross-border payment flows,” says Michimaru Onizuka, Banking Initiatives, EMEA, SWIFT. “The way the Bank of Tanzania has implemented FINInform applies to sending and receiving banks in Tanzania, and to cross border transactions of all sorts.” Bank of Tanzania payment: SWIFT message input decoding flow 55026 - OCT 2010 SWIFT © 2010.