eBusiness Weekly
Business Writer
The Reserve Bank of Zimbabwe’s investigations arm – the Financial Intelligence Unit (FIU) – has ordered local banks to freeze accounts of a number of private companies on allegations of money laundering.
In a circular prepared on February 22, 2022 and directed to all banks, the FIU indicated that it had noted some anomalous business conduct by some private firms that include Geribrian T/A, Transervet, Powerspeed investments Pvt Ltd T/A, Electrosales, Halsted Brothers Pvt Ltd, and ENBEE Store.
Some banks have since confirmed receipt of the circular, which bars the mentioned companies from accessing funds from their own accounts as investigations to examine the claims continue.
Money laundering is the illegal process of concealing the origins of money obtained illegally by passing it through a complex sequence of banking transfers or commercial transactions.
The directive also instructed banks to alert FIU of any deposits as well as withdrawal attempts by the embargoed and ring fenced firms.
The government has lately upped its combat against illegal monetary transactions ranging from currency manipulation and money laundering activities.
In the circular FIU Director-General, Tichafa Chigaba, instructed banks to halt any kind of drawings unless instructed by the financial intelligence unit itself.
“Directive to freeze transactions in respect of accounts for Geribrian T/A, Transervet, Powerspeed Investments Pvt Ltd T/A, Electrosales, Halsted Brothers Pvt Ltd and ENBEE Store.
“The unit has noted unusual activity on the above-mentioned business entity. As we carry out further investigations on possible money laundering relating to the funds, you are directed to freeze the amount with immediate effect and you shall not process any withdrawals or transfers from the accounts, unless with the specific approval of the unit. You should, however, allow deposits or other flows into the account.”
“You shall immediately report to the unit any deposit or other inflow into the account as well as any attempted withdrawal or transfer.
“Please acknowledge receipt of this directive in writing, confirming that you have frozen the account and confirming the account balance as at the date of freezing, “said Mr Chigaba in the circular.
In the recent Monetary Policy Statement, the RBZ implored directors of banks to continuously acquaint themselves with their responsibilities with regards to AML-CFT issues as articulated in the AML-CFT Risk-Based Guideline.
According to a survey conducted between 2014 – 18, the national money laundering threat for Zimbabwe was found to be medium, with major predicate offences to generate proceeds of crime being through financial and non–financial systems like fraud, smuggling, illegal dealings in gold, corruption and tax evasion.
In December 2021 the Insurance and Pensions Commission (IPEC) ordered its members to coordinate with the FIU to identify and assess money laundering and terrorist financing risks that may arise in relation to the introduction of new products and new business practices in the insurance and pensions industry.
This event follows recent US$30 000 penalty slap on a Chinese-owned restaurant for violating exchange rate regulations.
