RBZ slaps hefty penalties on forex offenders

STAFF WRITERS

The Reserve Bank of Zimbabwe (RBZ) has issued a hard-hitting warning to banks, authorised dealers with limited authority (ADLAs), corporates and individuals engaged in foreign currency trading, introducing hefty penalties of up to 1% of the transaction value or US$100 000 — whichever is greater — as part of a crackdown on exchange control violations.

RBZ Governor Dr John Mushayavanhu said in the Mid-Term Monetary Policy review that the central bank had “observed recurring incidences of non-compliance with exchange control rules and regulations across the economy,” warning that “acts of non-compliance will not be tolerated.”

The most common breaches include failure to acquit export and import documentation within set timelines, falsifying records to facilitate irregular transactions, under-declaring exports, overpricing imports, and abusing the Willing-Buyer Willing-Seller (WBWS) market through “double dipping” and fraudulent documentation.

“To foster a culture of compliance and uphold the foreign exchange rules and regulations that govern trade and investment transactions, the Reserve Bank has revised the penalty fees for non-compliance upwards to one percent of the transaction amount or one hundred thousand United States dollars (US$100 000.00 or ZiG equivalent), whichever is greater, or suspension or revocation of foreign exchange trading licence,” the bank said.

The RBZ said authorised dealers must strengthen internal controls and conduct proper due diligence to safeguard the credibility of the WBWS system, warning that abusers risk losing trading licences. The measures form part of broader reforms to strengthen financial discipline, protect the economy from illicit flows, and maintain investor confidence.