Guilty fines of businesses not banking can go up to US$500 000 – RBZ

Source: Guilty fines of businesses not banking can go up to US$500 000 – RBZ | The Financial Gazette June 6, 2016

THE Reserve Bank of Zimbabwe says guilty fines of retailers who do not bank money can go up to US$500 000 while there is also an option of prosecution.

The central bank also directed mobile wallet operators to reduce the costs of transactions on their platforms to ease the burden on consumers at a meeting held on Friday. In line with the call EcoCash has announced that payments made on its mobile money platform, EcoCash, will not attract any transaction fees except the 5c tax on every transaction.

Governor John Mangudya said the central bank, which administers seven Acts, will use the Bank Use Promotion and Suppression of Money Laundering Act to compel businesses particularly retailers to bank money.

The Acts state that every trader and parastatal shall, unless it has good cause for not doing so, deposit in an account with a financial institution no later than the close of normal business hours on the day following that on which the cash is received or on the next banking day —
(a) cash that is surplus to the requirements of the trader or parastatal; or
(b) cash in excess of ten million dollars (or such other amount in excess of ten million dollars as the Minister may prescribe from time to time); whichever is the lesser amount

“We have come to the realisation that moral suasion has failed and will now use the Acts we have under our control to compel businesses to bank. We have been importing cash weekly but that money is not flowing back to the banks. It should be banked so that money can circulate in the economy.”

Fines for not banking cash can go up to US$500 000 while the offence can also be prosecuted and the business licence cancelled. “What makes the offence worse is that the retail sector is listed as a reserved sector for locals under the Indigenisation Act. Not banking money can lead to licence cancellation.”

“We respect businesses but they should behave and operate along the parameters set by the laws of the country.”

A team from the Bank Use Promotion and Suppression of Money Laundering Unit made up of  inspectors had been deployed to businesses starting last week with the Act empowering them to work with police officers. Any designated institution, trader or parastatal which hinders or obstructs or fails to comply with a lawful request of an inspector, assistant of an inspector or police officer shall be guilty of an offence and liable to a fine or imprisonment for a period not exceeding three years, or both.

While the big retailers have been banking their money and greater use of POS  machines has been observed, small operations dominated by Chinese, Nigerians and Indians (Pakistanis) have not been doing such with some of them at the forefront of externalisation. The Source


  • comment-avatar
    R Judd 6 years ago

    The real problem is the money that has been stolen from the banking system by ZANU. Our ZANU “heroes” are the main externalisers too.

    All of this nonsense from the Reserve Bank will solve nothing. All currency in this country is earned by the private sector. None by the government.

    Governor (ha ha) John Mangudya is carrying on as though he actually had a prior claim or even some moral authority. The man is as mad as a hatter. Is he trying to destroy the economy?

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    Joe Cool 6 years ago

    The solution is to legislate the death penalty for anyone found hoarding more than, say, US$ 10.

  • comment-avatar

    This is just the latest example of a government that does not believe in creating an environment where the ability of companies and individuals to succeed is given space to grow. In such an environment, government could reap the benefits, or taxes, that accrue due the the citizenry’s success. Instead, government continues to presume that it is wiser than the individual and when shown otherwise, resorts to overly intrusive solutions to very simple problems. No wonder government needs so many employees – to keep track of so many overly complex regulations!

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      Joe Cool 6 years ago

      It’s a matter of philosophy. Most governments work on the basis of allowing people to use their money to do business and then tax them on the profits that they make. In Zimbabwe the philosophy is – if someone has money, let’s find a way to tax it off him before he can do anything else with it. That’s why we are expected to import materials from South Africa, pay 40% duty on them, and then use them to compete against South African products – which are then classified by the government as ‘cheap imports’, which then calls for another round of duties in order to make local products , competitive’. Get it?

  • comment-avatar
    IAN SMITH 6 years ago




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    Mazano Rewayi 6 years ago

    Zimbabwe is one of those countries, if not the only one, in the world where ordinary citizens are presumed guilty by virtue of being in the country. As to the poor carpenter every problem needs a hammer so to this impostor government every problem is solved by a penalty. Driving is an offence, doing business in an offence, farming is an offence, talking freely is treason, and voting freely is, well, an abomination deserving of a thorough beating and occasionally, death. This circus needs to end. How on earth does this nincompoop expect companies that are shutting down to raise half a million USD for a fine? What does Aesop’s fable say about the goose that laid the golden eggs?

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      Jake PhD 6 years ago

      @Mazano….good analysis. Driving along a 2 kilometre stretch, from Ardbennie School to Graniteside – there were 3 Police road blocks, so driving is an offence in these brain surgeons eyes. Aesop would have a heart attack, if he were living here.

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    Barry 6 years ago

    Just so the politicos can all. Not called the Reverse Bank for nothing.

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    Say It AsItis 6 years ago

    Pathetic attempt to control a currency you neither own nor earn as a government. You destroyed your own currency through plunder and misappropriation.
    The USD is not yours RBZ to control, your futile attempts will result in citizens revolting and circumventing your regulations. You have to realise Zanu PF is no longer the paymaster.

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    Joe Cool 6 years ago

    It’s sad that the US government doesn’t step in and warn these fools against abusing the use of their currency, but they probably view it the same as trying to introduce manners to a chimpanzees’ tea party.