Financial Crime World

Zimbabwe Enacts Tougher Financial Intelligence Unit Laws

Strengthening the Fight Against Financial Crimes

In a bid to strengthen its fight against financial crimes, Zimbabwe has enacted new laws that give the Financial Intelligence Unit (FIU) sweeping powers to impose fines and sanctions on individuals and institutions found guilty of non-compliance.

New Regulations Grant Broad Powers to FIU

According to the new regulations, the FIU can:

  • Impose civil penalties ranging from $250,000 to $500 per day for a maximum period of 180 days on financial institutions and designated non-financial businesses or professions that fail to comply with anti-money laundering and combating the financing of terrorism (AML/CFT) requirements.
  • Suspend penalties if the infringer ceases the infringement immediately upon receipt of the civil penalty order.
  • Impose daily fines not exceeding $500 for up to 180 days if the infringer fails to take remedial action within the specified timeframe.
  • Issue orders barring individuals from employment in certain industries or professions.
  • Request competent supervisory authorities to suspend or cancel licenses or permits of offending institutions.

Strengthening Anti-Money Laundering and Combating Terrorism

The new regulations aim to strengthen Zimbabwe’s anti-money laundering and combating terrorism regime by:

  • Preventing the misuse of the financial system
  • Improving transparency and accountability in the financial sector
  • Enhancing cooperation between financial institutions, law enforcement agencies, and regulatory bodies

FIU Structure and Budget

The Financial Intelligence Unit (FIU) is headed by a Director-General appointed by the Governor of the Reserve Bank in consultation with the Minister. The unit’s budget will be managed independently of the Reserve Bank, subject to internal audit and external auditing by the auditors of the Reserve Bank.

Conclusion

The new regulations demonstrate Zimbabwe’s commitment to combating financial crimes and strengthening its anti-money laundering and combating terrorism regime. With these measures in place, the country can improve transparency and accountability in the financial sector, prevent the misuse of the financial system, and enhance cooperation between financial institutions, law enforcement agencies, and regulatory bodies.