Zim Now Writer
Treasury has signaled an aggressive push to curb illicit financial flows, warning that Zimbabwe’s cash-heavy informal economy is undermining tax collection and fueling corruption, smuggling, and money laundering.
Deputy Finance, Economic Development and Investment Promotion Minister Kudakwashe Mnangagwa said the government is preparing reforms under the National Development Strategy 2 to formalise informal businesses and align financial oversight with global standards.
He was speaking in Harare at the launch of the country’s third national money laundering and terrorist financing risk assessment report.
“The NDS2 will set out key policies to move the country along this path. As we get to the launch, you will see announcements and refinements that make it easier to do business while encouraging formalisation,” Mnangagwa said.
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The report highlights the scale of the challenge, citing “exorbitant informalisation rates” that leave much of the economy outside the reach of Zimra and the Financial Intelligence Unit.
Informal transactions, mostly cash-based, are flagged as major drivers of tax evasion and illicit trade, including in precious metals and stones.
Officials say the government is considering stricter measures, including risk-based supervision of banks and non-financial institutions, tighter regulation of virtual assets, confiscation of illicit wealth, and stronger law enforcement capacity to investigate financial crimes.
FIU Director General Oliver Chiperesa stressed that Zimbabwe’s entrenched cash economy continues to expose the country to risks.
“We have a robust mechanism to monitor implementation of the five-year strategy informed by the national risk assessment. We’ll be carrying out annual reviews,” he said.
Reserve Bank Deputy Governor Innocent Matshe added that compliance with anti-money laundering and counter-terrorist financing (AML/CFT) standards was vital to protecting financial stability.
“The Central Bank doesn’t do this for its own benefit. It does this for the benefit of our economy and ultimately every Zimbabwean,” Matshe said.
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