ZIMBABWE’S AML/CFT RISK ASSESSMENT 2019: KEY FINDINGS

A comprehensive risk assessment of Zimbabwe’s Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) system has revealed a mixed bag of vulnerabilities across various sectors. The assessment, conducted by [Name of institution/agency], highlights several areas of concern that need to be addressed urgently.

Vulnerabilities in Specific Sectors

• Trust and Company Service Providers: The sector was found to be particularly vulnerable due to the lack of AML/CFT guidelines for these entities. Many trust and company service providers (T&CSFs) failed to comply with AML/CFT requirements, making them more susceptible to abuse.
• Law Firms: Most law firms were found to have failed to submit Suspicious Transaction Reports (STRs) since 2015, making it difficult to identify and track suspicious transactions. This lack of reporting allows potential money launderers and terrorist financiers to operate undetected.

Areas of Concern

• Lack of AML/CFT Guidelines: The absence of guidelines for trust and company service providers, law firms, and lawyers has led to a lack of understanding of their obligations under the law.
• Inadequate Supervision and Monitoring: There is a need for effective supervision and monitoring of lawyers and law firms to prevent money laundering and terrorist financing.

Relative Low-Risk Sector

• Financial Inclusion Products: Many institutions in this sector have implemented acceptable mitigatory measures to prevent the abuse of their products for money laundering and terrorist financing. However, there is always a risk of abuse if adequate controls are not in place.

Conclusion

Zimbabwe’s AML/CFT system requires urgent attention to address the identified vulnerabilities. The lack of guidelines, inadequate supervision, and non-compliance with AML/CFT requirements pose significant risks to the country’s financial stability and national security. The full report can be accessed on [website URL].