Financial Crime World

Zimbabwe Falls Short on Financial Action Task Force (FATF) Compliance Assessment

Partial Compliance with FATF Recommendations

HARARE - Zimbabwe’s financial sector has been found to be partially compliant with the recommendations of the Financial Action Task Force (FATF), according to a follow-up report released by the international organization. The assessment evaluates countries’ efforts to combat money laundering and terrorist financing.

Areas of Partial Compliance

  • Assessing risk and applying a risk-based approach
  • National cooperation and coordination
  • Targeted financial sanctions related to terrorism and terrorist financing

Non-Compliance in Key Areas

  • Transparency and beneficial ownership of legal persons and arrangements
  • Regulation and supervision of designated non-financial businesses and professions (DNFBPs)
  • Mutual legal assistance

Partial Compliance in Other Areas

  • Confiscation and provisional measures
  • Terrorist financing offence
  • Targeted financial sanctions related to proliferation
  • Customer due diligence
  • Record keeping
  • Politically exposed persons
  • Correspondent banking
  • Money or value transfer services
  • New technologies
  • Wire transfers
  • Reliance on third parties
  • Internal controls and foreign branches and subsidiaries
  • Higher-risk countries
  • Reporting of suspicious transactions
  • DNFBPs: customer due diligence
  • DNFBPs: other measures
  • Regulation and supervision of financial institutions
  • Powers of supervisors
  • Cash couriers
  • Statistics
  • Guidance and feedback
  • Sanctions
  • International instruments
  • Mutual legal assistance
  • Freezing and confiscation
  • Extradition
  • Other forms of international cooperation

Areas for Improvement

The report highlighted several areas that require improvement, including:

  • Strengthening regulations and supervision
  • Improving transparency and beneficial ownership disclosure
  • Enhancing international cooperation

Challenges Ahead

Zimbabwe has been working to improve its financial sector’s compliance with FATF recommendations in recent years, but the country still faces significant challenges in this area. The government will need to take concrete steps to address these issues if it is to meet the requirements of the FATF and maintain its position as a responsible player in the global financial system.