ZIMBABWE: Gono warns banks on money-laundering

The Reserve Bank of Zimbabwe (RBZ) has directed banks - some of whom were found to have been working with so-called cash barons - to adhere to Zimbabwe's anti-money laundering laws and report any suspicious transactions, the Herald Online reported on Thursday.

Those caught on the wrong side of the law would meet the consequences of their actions, the Herald said.

RBZ Governor Dr Gideon Gono said banks, although fully apprised of the anti-money laundering laws, had not taken heed of appeals by the central bank to adhere to the guidelines.

"Our message and advice to the financial sector is that we have talked to one another for a long time now, we have appealed to your good selves long enough and we issued many circulars and guidelines on the subject of money-laundering and other undesirable banking practices.



"Now is not the time to continue with such talking or lectures anymore but action and as a central bank we shall not be found wanting in this direction so that together and in partnership, we can rid our economy of the cash-hoarding and money-laundering menace," Gono said at a press briefing.

Investigations had shown that some bank officials were releasing billions of dollars to cash barons while starving ordinary depositors, the Herald said.

In some cases, bank employees were reactivating dormant accounts which they would then use as channels to syphon money.

Some bank employees are said to have lost their jobs in recent weeks after investigations established that they were involved in cash deals from which they would get kickbacks.

The bulk of the cash would then be sold to cash-desperate companies and individuals at premiums as high as 40 percent.

The cleansing process was meant to plug loopholes that large cash movers and some individuals had taken advantage of.

"As monetary authorities, we now also hold vital intelligence we have now gathered from the entire banking system on the intricate web of shelf companies and multiple accounts that were being held and operated simply to beat the standing banking regulations," Gono reportedly said.

The central bank implored the business community, labour and the general banking public to desist from any illicit cash transactions. - Sapa

http://www.iol.co.za/index.php?set_id=1&click_id=84&art_id=nw20080103085806189C503685