Authorities are
concerned that such practices leave millions of dollars lying idle, starving
the economy of much-needed cash for transactions.
Announcing his
2025 Monetary Policy Statement in February, RBZ Governor Dr John Mushayavanhu
described the practice of hoarding cash in banks or company premises as
financial disintermediation, which he said was stifling economic growth by
depriving economic agents of much-needed liquidity.
Some
manufacturers, he said, were supplying goods to the informal market but were
not banking the proceeds. Instead, they were keeping these funds in cash
deposit boxes, which violates the Anti-Money Laundering Act.
Dr Mushayavanhu
said the Financial Intelligence Unit (FIU) of the RBZ would take action to
address this malpractice.
FIU
director-general, Mr Oliver Chiperesa, confirmed the impending blitz, citing
concerns raised by Dr Mushayavanhu.
“You may recall
that during the presentation of his 2025 Monetary Policy Statement, the RBZ
Governor mentioned that businesses and individuals, especially manufacturers
and informal retailers, were hoarding millions of dollars in their cash deposit
boxes. This is depriving the economy of the much-needed liquidity,” Mr
Chiperesa said.
“We are
currently working on the regulations to ensure that we conduct this blitz
within the confines of the law. Normally, cash deposit boxes are used to keep
important documents, but the current trend is that they are being used to store
large sums of money outside the banking system, which is illegal according to
the Anti-Money Laundering Act”.
He said it was
encouraging to see improved use of the official banking system, which promotes
free financial flows.
“We want to
encourage growth and ensure that all transactions are accounted for in line
with anti-money laundering and anti-terrorism regulations. We were removed from
the FATF (Financial Action Task Force) grey list because of the clean flow of
money in our economy, and we want to maintain that achievement to support
economic growth through attracting Foreign Direct Investment,” Mr Chiperesa
said.
The FIU
recently strengthened its operations by opening offices in Bulawayo to bolster
ZiG stability.
However, the
widespread hoarding of millions of dollars in cash deposit boxes was a major
challenge as it threatened financial stability.
Currently, as
Dr Mushayavanhu indicated, there was stability in the market and the continued
stability of Zimbabwe Gold (ZiG) was expected to lead to more transactions
being conducted in local currency.
These
transactions are expected to include fuel sales as the market begins to embrace
ZiG as a store of value and a reliable medium of exchange.
Dr Mushayavanhu
also emphasised that keeping large sums of cash was an unnecessary risk given
the upward revision in limits on prepaid credit and attractive interest rates
on savings.
As part of
efforts to promote a culture of saving and bolster confidence in the local
banking sector, the RBZ has implemented an incremental rise in interest rates
on savings accounts. Herald
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