By Staff Writer
THE Financial Intelligence Unit (FIU) an independent arm of which compliments the work of the Reseve Bank of Zimbabwe (RBZ) has issued a directive to ZIPIT placing transaction limits for daily and monthly periods in a move aimed at curbing illicit foreign currency dealings.
In a letter addressed to the platform’s chief executive, Cyril Nyatsanza the FIU said the move is informed by confirmed abuses.
“The FIU has noted that the existing ZIPIT transaction limits which have no monthly cap are being misused, primarily for illicit foreign currency transactions.The current limits of ZW$100 000 per day allow a customer (subject to any bank-specific limits) to move about ZW$3 million per. month using a single account, and much more if he/she is multi-banked and/or uses third-party accounts,”said the letter.
The FIU said it had noted KYC shortcomings in the ZIPIT system that make it difficult for banks, regulators and law enforcement agencies to speedily identify counter-parties to a transaction, or to identify multi-banked users.
“Until such a time hen adequate safeguards are built into ZIPIT system to minimize the money laundering risk, ZIMSWITCH is directed to implement, with immediate effect, daily and monthly ZIPIT limits of ZW$20 000 and ZW$100 000, respectively,” FIU said..
The intelligenmce unit said the limits have been arrived after taking note of the fact that very few Zimbabweans earn more than ZW$100 000 per day
Last week , the RBZ governor vowed to clampdown all illegal activities which are pushing parallel market exchange rates beyond the reach of many and in the process causing high inflation and price hikes.
To date , the Ecocash platform has since been directed to stick to daily limits of amounts of cashing flowing into their trust accounts and have also been directed to produce their clients details.