Financial Crime World

Zimbabwe Takes a Major Step Forward in Fight Against Corruption

Zimbabwe has made significant progress in its fight against corruption, implementing various initiatives to strengthen international efforts to end “Safe Havens for Corrupt Funds”. One such initiative is the asset forfeiture/parallel financial investigation through the Money Laundering and Proceeds of Crime Act.

Strengthening International Efforts

  • Zimbabwe has implemented the good practice of asset forfeiture/parallel financial investigation in line with the United Nations Conventions against Corruption.
  • This initiative aims to strengthen international efforts to end “Safe Havens for Corrupt Funds”.
  • The anti-corruption exercise has seen the return of $300 million to the country, and there are currently 1166 cases of externalization of funds under investigation.

Corporate Governance Framework

Zimbabwe has developed and launched a Corporate Governance Code to ensure business sustainability. The code covers areas such as:

  • Trust between shareholders
  • Boards of directors
  • Management performance measurement
  • Accountability
  • Sustainability
  • Ethical conduct of directors

The country has also introduced the Public Entities Corporate Governance Bill, which will provide for corporate governance of public entities.

Legislation on Unexplained Wealth Orders

Zimbabwe has recently passed legislation on unexplained wealth orders or illicit enrichment. This requires an enforcement authority to make a civil application to the High Court citing that they have reasonable suspicion that any person, natural or juristic, has unexplained wealth.

  • The court can grant an unexplained wealth order restraining or freezing property and requiring the respondent to provide evidence to the contrary.

Challenges in the Fight Against Corruption

Despite progress, Zimbabwe still faces challenges in its fight against corruption, including:

  • Gaps in legislation to combat corruption
  • Lack of international cooperation
  • Strengthening capacity of institutions in the criminal justice system

The country is yet to enact legislation in line with Article 32 of the UNCAC, which provides for witness protection for witnesses, experts, and victims of corruption.

Conclusion

Zimbabwe’s anti-corruption efforts are making progress, although challenges remain. The country is strengthening its collaborations with national, regional, and international partners to continue being relevant in the anti-corruption regime.

Ultimately, the government aims to improve the integrity of the country’s financial system and reduce the scope of illicit transactions in the economy through an adequate and effective implementation of the Anti-Money Laundering/Countering Financing of Terrorism (AML/CFT) system.