Africa-Press – Zimbabwe. GOVERNMENT has launched the third Money Laundering and Terrorist Financing Risk Assessment Report as it moves to strengthen efforts to combat financial crimes in the country.
Speaking at the launch event on behalf of Finance, Economic Development and Investment Promotion minister Mthuli Ncube yesterday, his deputy Kudakwashe David Mnangagwa highlighted the country’s milestones in aligning its anti-money laundering (ANL) and counter financing of terrorism (CFT) framework to international standards.
Mnnagagwa said the country is currently rated as largely compliant in 37 out of the Financial Action Task Force’s (FATF) 40 recommendations on AML and CFT, a rating that puts the country’s AML CFT legal and institutional framework among the best in the region and globally.
“Zimbabwe has always been at the forefront of the region in terms of aligning its anti-money laundering and counter financing of terrorism framework to international standards, while ensuring that efforts to combat financial crimes support the country’s developmental goals,” he said.
“In this regard, Zimbabwe is currently rated as largely compliant or fully compliant in 37 out of the FATF’s 40 recommendations on AML and CFT, a rating that puts the country’s AML CFT legal and institutional framework among the best, not only in the region but globally.”
Mnangagwa emphasised that the effective implementation of the laws and regulations is key to tackling money laundering and related financial crimes, urging all stakeholders to work together to ensure that the laws are effectively implemented.
“I urge all stakeholders across the entire anti-money laundering value chain, from policy makers, regulatory bodies, law enforcement agencies, the FIU [Financial Intelligence Unit], and the private sector, including financial institutions and designated businesses and professions, to work tirelessly to ensure the laws are effectively implemented,” he said.
The deputy minister added that come next June, Zimbabwe would undergo assessment under the Eastern and Southern Africa Anti-Money Laundering Group, ISMILAG, a third round of mutual evaluations.
Speaking at the same event, Reserve Bank of Zimbabwe deputy governor Innocent Matshe spoke highly of the importance of effective implementation of AML and CFT measures.
He noted that the central bank remains committed to playing its part in safeguarding the integrity of the financial system through risk-based AML-CFT supervision and robust enforcement of compliance by its supervised institutions.
“Understanding where our greatest money laundering risks lie enables the country, both at national policy level and at the institutional level, to come up with appropriate measures and responses to mitigate the risks,” he said.
“Most importantly, risk-based approach to combating money laundering and other financial crimes also enables countries and institutions to prioritise limited resources to areas of greatest need and impact.
“We should all use the risk assessment process and today’s launch as an opportunity for the country to renew and refocus efforts to combat money laundering and financial crimes.”
He added: “Although the country assessment is already around the corner, let us use the precious time between now and the assessments to redouble efforts in our respective areas of responsibility to give the country a chance for the best rating possible.
“Under the previous round of country evaluations, Zimbabwe, along with many other countries in the region, ended up being placed on FATAP’s grey list.”
Presenting on the key findings of the National Risk Assessment, FIU deputy director Clara Hwata said Zimbabwe’s overall risk of money laundering is rated as medium, combining a medium-low threat and medium-high vulnerability.
“The threat rating has improved due to enhanced law enforcement capabilities, including dedicated units for investigating financial crimes and asset forfeiture,” she said.
“However, significant vulnerabilities persist, particularly in sectors like car dealers, real estate, and banking, exacerbated by a largely informal economy and reliance on cash transactions.”
For More News And Analysis About Zimbabwe Follow Africa-Press
