Civil penalties for forex payments

Source: Civil penalties for forex payments | The Herald October 1, 2019

Civil penalties for forex payments

Fidelis Munyoro Chief Court Reporter
Government has stipulated a $6 000 fine for anyone found pricing goods and services in foreign currency, with a view to stopping the price madness on the market where some traders continue to wilfully violate national regulations to price in local currency.

This follows the promulgation of Statutory Instrument (SI) 212 of 2019 Exchange Control (Exclusive Use of Zimbabwe Dollar for Domestic Transactions) Regulations 2019. The SI was published last Friday in terms of Section 2 of the Exchange Control Act [Chapter 22:05].

According to the regulations, failure to pay the prescribed fine will attract an extra $100 daily for each day of default.

The extra charge will run for 90 days before the accused is committed to civil imprisonment.

However, for crimes regarded more serious, defaulters will be fined a cumulative fee of $1 200 per day over 90 days, over and above the $6000 fixed fine in the event they fail to comply with the law.

The new regulations regulations make it illegal for one to pay or to receive payment in foreign currency in any domestic transaction.

It means that it has become a civil offence to pay or receive payment in foreign currency.

The SI further expands the circumstances where such receiving or paying in foreign currency is unlawful.

It also says quoting, displaying, charging, soliciting for payment or receiving payment for goods, services, fees or commission in any other foreign currency is an offence.