New Penalty Structure Issued by Financial Intelligence Unit

The Financial Intelligence Unit (FIU) has introduced a new penalty structure to deter financial institutions and businesses from engaging in civil infringements. The new penalties aim to ensure compliance with financial regulations and protect the integrity of Zimbabwe’s financial system.

New Penalties for Non-Compliance

The FIU’s new directive imposes civil penalties on individuals and entities found guilty of infringing on financial regulations. These penalties include:

• Fixed Penalty: A fixed penalty not exceeding $500 per day, up to a maximum period of 180 days.
• Continuing Infringement Penalty: A continuing infringement penalty of up to $250,000 for specified periods.
• License Suspension or Cancellation: Suspension or cancellation of licenses, registrations, or permits.

Enforcement and Accounting

The FIU has introduced measures to ensure that civil penalties are enforced and accounted for. The unit will recover penalties through court proceedings and deposit the funds into its accounts.

In a statement, the FIU Director-General said:

“We are committed to protecting the integrity of our financial system and ensuring that all stakeholders comply with regulations. These new penalties will help us achieve this goal and ensure that those who engage in civil infringements face consequences.”

Conditions for Imposing Sanctions

The directive outlines the conditions under which competent supervisory authorities may impose sanctions, measures, or civil penalties for civil infringements committed by individuals and entities.

About the Financial Intelligence Unit

The FIU is a unit within the Reserve Bank of Zimbabwe responsible for monitoring and combating financial crime. Its new penalty structure aims to strengthen its efforts to prevent financial crimes and maintain the integrity of the country’s financial system.