Financial Crime Prevention in Zimbabwe: Progress Made, But More Work Remains

Zimbabwe has made significant strides in addressing technical compliance deficiencies identified in its Money Laundering and Terrorist Financing (ML/TF) report. The country’s efforts have resulted in several recommendations being re-rated by the Financial Action Task Force (FATF), a global watchdog on money laundering and terrorist financing.

Positive Progress

• Recommendation 1 has been upgraded from Partially Compliant to Largely Compliant.
• Recommendation 24 has been upgraded from Non-Compliant to Largely Compliant.

These improvements are seen as a major breakthrough in Zimbabwe’s efforts to strengthen its anti-money laundering (AML) and combating the financing of terrorism (CFT) measures.

Areas for Improvement

• Recommendation 2 has been downgraded from Largely Compliant to Partially Compliant due to changes made to the FATF Standards.
• Recommendations 5, 15, and 21 remain unchanged at Compliant, Concerns or Partially Compliant respectively.

Despite this progress, Zimbabwe is still required to continue implementing its AML/CFT measures and will remain under enhanced follow-up. The country has committed to keeping the Eastern and Southern African Anti-Money Laundering Group (ESAAMLG) informed of its ongoing efforts to improve and implement its anti-money laundering and combating the financing of terrorism measures.

Conclusion

The recent developments are seen as a positive step towards strengthening Zimbabwe’s financial system and preventing financial crimes. However, it is clear that there is still much work to be done to ensure the country’s AML/CFT measures are fully effective. Zimbabwe must continue to prioritize its efforts to improve its anti-money laundering and combating the financing of terrorism measures.