According to FATF, Zimbabwe has already established an asset forfeiture unit within the National Prosecuting Authority and will work to implement its action plan by:
The Reserve Bank of Zimbabwe already has a financial intelligence unit that can track money laundering but the central bank has problems supervising mobile money which has become a currency of its own.
The RBZ can easily monitor and supervise banks which are required to exercise know your customer (KYC).
According to the Bankers Association of Zimbabwe:
The RBZ falls short on mobile money. It does not have the same controls on mobile money which can therefore be a massive conduit for money-laundering.
Although each of the three networks in the country has mobile Ecocash dominates the market. It has 6.6 million clients compared to NetOne’s 335 000 and Telecash’s 54 200.
However, according to the latest report from the Posts and Telecommunications Regulatory Authority of Zimbabwe, although it controls 94.4 percent of the market, Ecocash accounted for 99.6 percent of all the mobile money transactions in the country during the second quarter.
The transactions totalled a hefty $6.2 billion.
Ecocash claims that it is just a platform for transactions but according to one senior banker it knows and has control over all transactions on its platform. The Reserve Bank of Zimbabwe can therefore enforce know your customer rules on mobile money or shut the platform if it does not comply.
All the RBZ needs is to be tough and not be swayed by political pressure because things can really get out of control as they did last month.
With new notes coming, and demands likely to fall short of supply, it might be necessary for the RBZ to enforce these rules on mobile money operators before it injects cash into the market.
Like it or not, Ecocash is now a currency and something needs to be done about that if the country is to curb money laundering and stop the rot which is also eroding the value of the local currency.
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This post was last modified on October 19, 2019 9:20 pm
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