Government Moves To Tighten Anti-Money Laundering Laws
The government has resolved to strengthen legislation to combat money laundering and the financing of terrorism.
Money laundering involves concealing the origins of illegally obtained money, typically by passing it through a complex sequence of banking transfers or commercial transactions. The goal is to make the money appear legitimate, allowing the criminal to use it without attracting attention.
During a post-Cabinet media briefing last week, Information, Publicity and Broadcasting Services Minister Jenfan Muswere announced that the Cabinet had approved the principles underpinning the proposed amendments to the law. He said:
Cabinet considered and approved the principles underpinning proposed amendments to the Money Laundering and Proceeds of Crime Act [ Chapter 9:24], Suppression of Foreign and International Terrorism Act [ Chapter 11:21 ] and The Customs and Exercise Act [ Chapter 23:02 ], as presented by the Minister of Finance, Economic Development and Investment Promotion, Honourable Professor Mthuli Ncube.
The proposed amendments on a number of Acts are thus meant to address remaining gaps in the country’s legal and institutional framework on combating Money Laundering, Financing of Terrorism and Financing of Proliferation of weapons of mass destruction.
Zimbabwe subscribes to the international standards on combating Money Laundering, Financing of Terrorism and Financing of Proliferation of Weapons of Mass Destruction as set out in the Financial Action Task Force (FATF) Forty (40) Recommendations.
Member countries are assessed periodically, to determine the extent to which they are implementing the FATF standards. Zimbabwe is due for the next round of assessment in 2026.
Muswere also said a proposal was made to harmonise sections 11 and 12 of the Money Laundering and Proceeds of Crime Act chapter 9:24 and amendments with sections 27 and 55 of the Customs and Exercise Act. He said:
It is proposed that sections 11 and 12 of the Money Laundering and Proceeds of Crime Act [ Chapter 9:24] be amended.
Amendments to sections 11 and 12 of the Money Laundering and Proceeds of Crime Act will also necessitate amendments to sections 27 and 55 of the Customs and Excise Act so that the two Acts are aligned.
The Financial Action Task Force is an intergovernmental organisation established in 1989 to combat money laundering and terrorist financing.
Its primary objectives are to set standards and promote measures that ensure effective global action against these illicit activities.
The FATF’s Forty Recommendations were established in 1990 and updated several times. These recommendations provide a framework for countries to implement effective measures in both the public and private sectors.
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