In the Microfinance field, so as in any field there are governing laws that monitor and regulate the operation of its entities and agencies. These laws establish bodies, promote conducts, prohibit misconducts, so as encourage and grant relies or remedy in its various operations of its entities and agencies herein known as the Microfinance service providers. These entities and agencies are what run the day to day operation of the microfinance business. The Laws solely focus on making sure that the setup procedures are adhered to and followed in accordance to the requirements of the Laws so as to avoid the contradiction amongst the entities and agencies or between the service provides/clients and the regulatory bodies.
The Question of Non-Compliance then is posed as to what extent one should comply? Who in this matter is subject to compliance? In other words who should compel who and who should not?
The answer is quite simple as the general rule is, everyone is bound by the law and if that being the case then, every entity, agency, person, and regulators are all bound to comply the rules and regulations. In other words both the sides of the service providers and their clients without forgetting the regulators, all must in all occasions comply the laws governing the Microfinance business.
Therefore; Non-Compliance in this context means the failure to act in accordance to the requirements set or put to be followed or applied in exercising a certain task in a particular field herein Microfinance business.
The Law under the provision of Section 4(1) and (2) of the Microfinance Act, No.10, 2018 provides a clear explanation of what Microfinance business really is, it states
“The microfinance business shall be undertaken by microfinance service providers which are (a) established in terms of their respective laws and recognized under this Act; and (b) established and recognized under this Act”
The Law further extends and under Section 4(3) of the same Act, it briefly highlights what kind or types of Microfinance businesses are to be carried out and be regulated by the Microfinance Act, No.10, 2018.
Therefore, the Law on the other hand provides clear environment in the operation of the Microfinance activities but as well as offering remedying situations for the clients that suffer the difficulties from Microfinance service providers, entities and agencies from issues of or related to Non-Compliance. The matter of fact is in the operation of Microfinance activities the law has provided proper procedural requirements but yet practically it is witnessed of some service providers or even regulatory actors who violate the compliance and hence lead the clients and entities running microfinance activities suffering loss in their business because of the issues of Non Compliance.
- First and foremost to comply with requirement of having management of information system.
- A Quality assurance, reasonable and affordable solution to your business to recover the loss incurring your business from the Non-Compliance of the laws governing microfinance operations.
- Reduce the cost of compliance by having just to click, download and send required reports by regulator, being TCDC, BoT etc.
- The solution simply your day to day work by facilitate it to be run effectively and efficiently while maintain accuracy, integrity, reliability and availability of the information
- Thus, it will add you speed, accuracy and realizable benefits in running your microfinance business.
- Not forgetting, the solutions aims to rescue your business from incurring unnecessary losses and make your business grow with quality assured service.
Kindly visit us to get your affordable solutions and services that could lead your business to the paramount of hope gross profit and safety to your business operations.
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