Zimbabwe Imposes Bank Transfer Limits to Stop Illicit Transactions
29 May 2020

Zimbabwe’s central bank imposed limits on the amounts banks may transfer via a payment platform with 2 million users, as it tries to curtail illicit transactions and money laundering that it claims contributed to a currency rout.

In a letter dated May 27 and seen by Bloomberg, the central bank’s financial intelligence unit ordered ZimSwitch Technologies, the owners of the Zimswitch Instant Payment Interchange Technology (Zipit) system, to implement daily and monthly limits of Z$20,000 ($800) and Z$100,000, respectively, with immediate effect. Zipt is used by mobile-phone users to send money to each other, according to the company’s website.

“The limits have been arrived at cognizant of the reality that very few Zimbabweans earn more than Z$100,000 per day, and those who do have other payment options available for high-value transactions,” the intelligence unit said in the letter, which was also sent to the country’s 19 commercial lenders.

The curbs would remain until safeguards were in place to minimize the risk of money laundering, the central bank said.

By Ray Ndlovu, Bloomberg, 28 May 2020

Read more at Bloomberg

RiskScreen: Eliminating Financial Crime with Smart Technology

You can claim CPD minutes for this content, by signing up to our CPD Wallet

FREE CPD Wallet