Online Reporter
Africa Moyo
ZIMBABWE is strengthening its legal, regulatory and institutional frameworks to combat money laundering, terrorist financing and proliferation financing, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has said.
The measures are aimed at safeguarding the country’s financial system from emerging threats while enhancing its capacity to detect and prevent financial crimes.
Prof Ncube said this on Friday at the 26th Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) Council of Ministers meeting in Kigali, Rwanda.
“Our contribution has been multifaceted,” he said.
“First of all, we have shown that the best way to deal with anti-money laundering issues is to take a whole-of-Government approach.”
To reflect the whole-of-Government approach, Prof Ncube led a delegation comprising the Insurance Pensions Commission who regulate pension funds, Security and Exchanges Commission, the Reserve Bank of Zimbabwe, the Zimbabwe Anti-Corruption Commission and the Financial Intelligence Unit (FIU).
Prof Ncube said Zimbabwe was also contributing to discussions on emerging risks, particularly the regulation of virtual assets.
“An emerging issue is that of regulating virtual assets, where all the regulators around the world are battling with how to deal with this and we have made our contributions as how this could be dealt with,” he said.
The country is strengthening systems for identifying ultimate beneficial owners of companies to prevent the abuse of front companies for money laundering.
“An issue that should not be forgotten is that of ultimate beneficial ownership when it comes to what we call front companies, or companies that may be used for the purpose of anti-money laundering.
“In Zimbabwe, we have been doing quite a bit in computerising the systems and making sure that we get to know who is the ultimate beneficiary owner, and that way reduce any possibilities of harmful money laundering,” said Prof Ncube.
The meeting was held under the theme “From technical compliance to demonstrable outcome: Strengthening effective AML/CFT/CPF systems in Eastern and Southern Africa”.
A major highlight for Zimbabwe was the announcement that it will host the Eastern and Southern Africa Anti-Money Laundering Group Task Force of Senior Officials meeting from April 5 to 9 in Victoria Falls next year.
Prof Ncube said Zimbabwe would use the meeting to showcase its regulatory infrastructure and reforms aimed at strengthening financial integrity.
“What Zimbabwe will bring to the table is how to effectively deal with anti-money laundering and showcase how we are doing it through our regulatory infrastructure,” he said.
Zimbabwe would also share its experience in regulating financial services, including capital markets and gold holdings.
The hosting of the meeting is expected to strengthen the country’s role in regional efforts to combat financial crime while providing an opportunity for regulators to exchange experiences and develop coordinated responses to emerging risks.
