Establish inter agency taskforce
THE Reserve Bank of Zimbabwe (RBZ) should consider establishing an inter-agency task force to complement the work of the Financial Intelligence Unit (FIU) in enforcing exchange regulations and wider monetary policy compliance.
Chairperson of the Parliamentary Portfolio Committee on Budget, Finance and Economic Development, Dr Clemence Chiduwa, said this in Parliament on Thursday where he also urged the RBZ to ensure that 50 percent of the foreign currency retention was available to commercial banks.
“The RBZ should facilitate establishment of inter-agency task forces at district level to enforce compliance given that Financial Intelligence Unit is thin on the ground, by 20 June 2024,” he said.
“RBZ should also enquire on the capacity of the FIU in enforcing financial discipline within the country and also in other countries considering that some illegal transactions happen at border posts. The ministry advised that the capacity of the FIU needs to be enhanced.”
By establishing an in inter-agency unit, the RBZ would be able to harness combined efforts from relevant arms of Government such as the police and other relevant bodies to foster enhanced compliance.
At the moment the FIU serves as a national centre for the receipt and analysis of suspicious transaction reports and relevant money laundering information, associated predicate offences, and terrorist financing.
However, there have been concerns that its composition as a unit within RBZ limits the impact of the huge mandate ahead of its teams.
A former Deputy Minister of Finance, Dr Chiduwa said the Treasury should issue also guidelines on how to comply with the International Financial Accounting Standards by December 2024 and consider relaxing the period for filing of corporate income tax returns from 30 June by one month to 31 July to allow ample time for corporate to make the necessary conversions, by 30 June 2024.
He stressed the need for RBZ to continuously engage in aggressive awareness campaigns to educate the public on the new currency.
Regarding the marketing of maize and other grains, Chiduwa said these should be deregulated to ensure that farmers are efficiently paid upon delivery of grain.
“RBZ should develop regulations for creating and promoting the secondary mortgage market by December 2024. ZiG should, with immediate effect, be designated as the first currency of settlement with an option of paying in foreign currency.
“The Ministry of Finance, Economic Development, and Investment Promotion and RBZ should maintain tight fiscal and monetary policies to create long-term exchange rate stability,” said Dr Chiduwa.
Following the presentation of the 2024 Monetary Policy by RBZ Governor, Dr John Mushayavanhu, in April, the Joint Committees on Budget, Finance, Economic Development and Investment Promotion and Industry and Commerce have been conducting wide consultations to raise awareness and gather public views. — chroncile
