Financial Crime World

ZIMBABWE FINANCIAL INTELLIGENCE UNIT IMPOSES CIVIL PENALTIES ON NON-COMPLIANT ENTITIES

Zimbabwe’s Financial Intelligence Unit Takes Action Against Non-Compliant Entities

The Financial Intelligence Unit (FIU), a unit of the Reserve Bank of Zimbabwe, has taken decisive action against several entities that have failed to comply with the country’s anti-money laundering and combating the financing of terrorism regulations.

Penalties Imposed

The FIU has issued orders imposing fixed civil penalties ranging from $500 to $250,000 on entities found to be in breach of the regulations. These penalties will be suspended conditionally upon the infringer ceasing the infringement or taking remedial action specified in the order.

Additional Measures

  • Several individuals have been barred from employment in certain financial institutions and professions for disclosed reasons.
  • The FIU has requested competent supervisory authorities to institute proceedings for the suspension or cancellation of licenses and permits held by non-compliant entities.

Stance Against Non-Compliance

“We will not hesitate to take action against any entity that fails to comply with our regulations,” said a spokesperson for the FIU. “Our goal is to prevent money laundering and terrorist financing, and we will do everything in our power to achieve this goal.”

FIU’s Powers and Responsibilities

The FIU was established under the Financial Intelligence Unit Act to coordinate efforts to combat money laundering and terrorist financing. The unit has been granted powers to:

  • Impose civil penalties on non-compliant entities
  • Request competent supervisory authorities to impose sanctions, measures, and civil penalties on non-compliant entities and individuals

Budget and Governance

The FIU’s budget will be approved by the Reserve Bank’s Board and managed independently, subject to internal audit by the Reserve Bank and external audit by the auditors of the Reserve Bank.

Director-General’s Tenure

The FIU’s Director-General shall vacate office if:

  • They tender resignation
  • Are found guilty of gross misconduct or incompetence
  • Are no longer able to perform their functions due to infirmity of body or mind