Collaboration helped Zim to exit grey list

Collaboration helped Zim to exit grey list

 

 

STAFF WRITER

 

 

 

Collaboration among government institutions, supervisory authorities, reporting entities, law enforcement agencies, policymakers and the private sector helped Zimbabwe to exit FATF Grey List as the partnership addressed deficiencies that were identified.

 

 

 

In October 2019, Zimbabwe was placed on the list of countries under increased monitoring for compliance with AML/CFT Standards, commonly referred to as the FATF Grey list due to lack of adequate risk-based supervision and frameworks for financial institutions and Designated Non-Financial Businesses and Professions (DNFBPs) and insufficient mechanisms and gaps in ensuring competent authorities had access to timely and up-to-date beneficial ownership information for legal persons and arrangements.

 

 

 

There were also gaps in the implementation of targeted financial sanctions related to terrorism and proliferation financing and weaknesses in internal controls, record-keeping, and customer due diligence practices across sectors.

 

 

 

Speaking at the Fifth Public Private Sector Dialogue on Anti-Money Laundering and Financial Crime, Joseph Mverecha, Chief Director, Economic Affairs in the Ministry of Finance, representing Permanent Secretary George Guvamatanga, who is also the Chairperson of the National Anti-Money Laundering Advisory Committee, told the delegates that effective public-private cooperation helped the country to be removed from the FATF grey list on March 4, 2022.

 

 

 

“Government institutions, supervisory authorities, reporting entities, law enforcement agencies, policymakers and the private sector worked together with a common purpose.Through coordinated efforts, we strengthened legislation, enhanced institutional frameworks, improved supervision, increased reporting quality, strengthened investigations and prosecutions, and addressed identified deficiencies,” Guvamatanga said.

 

 

 

He said these collective efforts culminated in Zimbabwe’s exit from the FATF Grey List in February 2022.

 

 

 

“That achievement was not the success of a single institution. It was not the success of the Government alone. Nor was it the success of the private sector alone.It was the success of the partnership.It was the success of stakeholders recognising that the integrity of the financial system is a shared responsibility,” Guvamatanga added.

 

“Today, we can state with confidence that Zimbabwe’s AML/CFT framework is significantly stronger than it was a few years ago. Yet we must also recognise that AML/CFT effectiveness is not a destination. It is a continuous journey requiring constant vigilance, adaptation and collaboration.”

 

 

 

The Financial Intelligence Unit (FIU) director general Oliver Chiperesa said the unit remains committed to supporting meaningful public-private engagement, providing appropriate feedback and guidance, and promoting the responsible exchange of information within the confines of the law.

 

“This conference should be treated as a working platform—one through which we identify specific challenges, develop practical responses and strengthen relationships between and among institutions across the public and private sector divide,” Chiperesa stated.

 

 

FIU dialogue has become a critical mechanism for engagement, cooperation and collective action among all stakeholders involved in protecting Zimbabwe’s financial system and economy from abuse by criminals and terrorist financiers.

 

 

 

The effectiveness of a country’s AML/CFT system is not measured by the number of reports produced, the number of meetings attended , or the quantity of information gathered, it is measured by outcomes.

 

 

 

“It is measured by our ability to use the insights we have gathered to detect illicit activity, investigate financial crime, recover criminal proceeds, prevent abuse of our financial system and ultimately safeguard our economy and citizens.

 

 

 

A results focussed approach is very much in keeping with Government’s Integrated Results Based Management system, that was ushered in by His Excellence, the President of the Republic of Zimbabwe to improve performance in all areas of government services to our people,” he said.

 

 

 

Chiperesa said effectively combating money laundering and illicit financial flows also aligns perfectly with the country’s National Development Strategy (NDS2).

 

 

Zimbabwe is in the middle of a mutual evaluation process which will culminate in the onsite visit by the assessors in January 2027.

 

 

 

The country is undergoing a new Mutual Evaluation process under the auspices of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG).

 

The Mutual Evaluation will assess much more than the existence of laws, regulations and institutional structures.

 

It will examine whether the national framework is producing effective and demonstrable outcomes.