Financial Crime World

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Financial Sanctions Evasion in Zimbabwe Exposed: US Lifting of Restrictions Sparks Misconceptions

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The recent executive order signed by US President Joe Biden has sparked widespread misconceptions about the lifting of financial sanctions on Zimbabwe. But what does this really mean?

Background

In March 2024, President Biden signed an executive order that ended three previous presidential orders imposing sanctions on high-ranking officials in the Zimbabwean government, military, and civil service. These individuals were accused of undermining democracy, contributing to political violence and intimidation, and deliberate breakdowns in the rule of law.

New Sanctions Regime

While the sanctions regime was lifted, a new set of targeted sanctions was introduced under the Global Magnitsky Human Rights Accountability Act. The US Treasury’s Office of Foreign Assets Control (OFAC) imposed fresh sanctions on 11 Zimbabwean individuals and three businesses for their involvement in corruption or serious human rights abuse.

Here is the list of sanctioned individuals:

  • President Emmerson Mnangagwa
  • His wife Auxillia Mnangagwa
  • Businessperson Kudakwashe Tagwirei and his wife Sandra Mpunga
  • Vice-President Constantino Chiwenga
  • Defence Minister Oppah Muchinguri

Misinformation Spreads

Social media platforms have been flooded with false claims that the US has lifted sanctions on Zimbabwe. Xenophobic messages in neighboring South Africa, where Operation Dudula has spread misinformation about Zimbabweans being forced to return home due to the lifting of sanctions.

However, the truth is that the main thrust of US sanctions against Zimbabwe as a country remains in place. The Zimbabwe Democracy and Economic Recovery Act of 2001 (ZDERA) prevents the country from accessing funds from global financial institutions such as the International Monetary Fund and the World Bank’s International Development Association and International Bank for Reconstruction and Development.

Clarification

US State Department official David Gainer clarified Biden’s order, stating that the policy towards Zimbabwe has not changed, but the sanction tools have. The US continues to have serious concerns about human rights abuses and corruption in Zimbabwe, and key individuals bear responsibility for these actions.

Conclusion

While the lifting of one sanctions regime may be seen as a step forward, it is clear that financial sanctions evasion in Zimbabwe remains a complex issue. It is essential to separate fact from fiction and understand the nuances of US policy towards Zimbabwe.