Reserve Bank of Zimbabwe warns banks about money-laundering
In the beginning of January 2008, the Reserve Bank of Zimbabwe (RBZ) has directed banks to adhere to Zimbabwe’s anti-money laundering laws as well as to report any suspicious transactions. Some of the banks directed by the RBZ were found to have been working with “cash baronsâ€.
RBZ Governor Dr Gideon Gono said that banks must respect the anti-money laundering laws and adhere to the guidelines provided by the central bank regarding this problem. According to him, the message and advice to the financial sector is numerous circulars and guidelines issued by the RBZ as regards money-laundering and other undesirable banking practices.
Gono informed that, in accordance with investigations, some bank officials were releasing billions of USD to cash barons while ordinary depositors were suffering. There also were cases, when bank employees reactivated dormant accounts to use them afterwards as channels to syphon money. Gono said that some bank employees have lost their jobs recently as investigations established their involvement in cash deals from which they would get kickbacks.
The central bank of Zimbabwe urged the business community, labour and the general banking public to avoid any illicit cash transactions.