CBZ Bank Fined $385 Million by the US for doing transactions on behalf of ZB, which was under sanctions

CBZ Bank is reported to have been fined $385 million by the United States Treasury’s Office of Foreign Assets Control (Ofac) after it allegedly performed over 15 000 transactions on behalf of ZB Bank when it was still under US sanctions. CBZ was initially fined a whopping $3.8 billion dollars for the violations, but the amount was reduced by 90 percent after negotiations and mitigation. The fine was reduced in March and there is the chance that it can be reduced further as the negotiations are still ongoing.

Ofac deputy director Andrea Gacki wrote to CBZ saying:

Accordingly, the base penalty for the apparent violations equals the applicable schedule amount for each apparent violation, capped at US$250 000 per apparent violation, which in this case totals US$3 856 505 460

According to the weekly newspaper, the Independent, this is the real reason that CBZ group chief executive officer Never Nyemudzo resigned from his post, contrary to his claims that he wanted to spend more time with family.

More:  The Independent