Mixed reaction over InnBucks suspension
THERE were mixed reactions from members of the public following the suspension of InnBucks, a Simba Brands foreign currency transfer service together with MetBank and a bureau de change operator — Rolink Limited from trading in foreign currency.
Inn bucks
On Wednesday, the Reserve Bank of Zimbabwe (RBZ) Governor, Dr John Mangudya, ordered the trio to cease operating with immediate effect for contravening exchange control regulations.
MetBank, a commercial bank is under investigation for breaching the Exchange Control regulations relating to trading in foreign currency, Dr Mangudya said.
Some people have decried the move citing the need to promote financial service innovation and consumer convenience but others have welcomed the decision saying to protect the transacting public, non-compliant players should not be allowed to operate.
Reserve Bank of Zimbabwe.
Those supporting the move said it was critical for all foreign currency trading agencies to fully adhere to set regulations.
“I am a regular user of InnBucks largely due to its vast outlets and low tariffs. In my view, the RBZ directive is a good move as it shows it has the interest of depositors at heart. They (InnBucks) should regularise their operations,” said a client at one of the Simbisa outlets in Bulawayo who identified herself as Mrs Mashayamombe.
The other people said the suspensions tend to cause instability in the market and may scare away investors.
A financial services expert who requested anonymity said although the RBZ was exercising its mandate, it should encourage new financial innovations that improve services to the transacting public.
“The economy needs innovations that improve services to the transacting public and the regulator should assist these newcomers that come up with such innovations to regularise operations as this is critical for financial inclusion,” said the official.
Another InnBucks client Mr Mthandazo Dlamini said forex dealers should regularise their operations to protect the transacting public.
“People can only be guaranteed protection of their money if they deal with registered dealers.
It is good that companies are coming up with innovations for the convenience of the transacting public but they should then regularise their operations. It is a fact that some of the dealers that have been suspended had brought services closer to the people but unfortunately took long to regularise,” he said.
Mr Dlamini said some people were blaming the RBZ for taking such a drastic measure but the same people when they are short-changed by these dealers will blame the central bank.
In response, InnBucks has said it will engage with the regulatory authorities with a view of achieving a speedy and amicable resolution.
“InnBucks has been and remains engaged with the regulatory authority in respect of its ADLA license. Regrettably, an impasse has occurred in respect of which the Simba Board is engaging the regulatory authority with a view of achieving a speedy and amicable resolution,” said the company in a notice.
“Pending further statements, we assure you that funds held in the InnBucks accounts remain secure and all product purchases and cash withdrawals will be honoured as per regulations.”
In a notice on InnBucks, Dr Mangudya revealed that in November 2021, the bank directed InnBucks to apply for and obtain necessary approvals in order to continue offering the service.
“To date, the company has not yet regularised the service as directed hence the inevitable regulatory intervention by the bank. The cessation of the service means that customers shall no longer be able to deposit funds into the InnBucks account or transfer the funds to third parties,” said the Apex Bank.
Although clients would not be able to deposit funds into InnBucks account or transfer the funds to third parties, as a reprieve, the central bank gave clients a 30-day period to redeem their balances.
“However, customers may redeem their balances for cash or goods at Simbisa Brands (Private) Ltd outlets within a period of 30 days from date of this Press statement,” said Dr Mangudya.
Simbisa Brands
On MetBank Limited the RBZ said the operator will not be permitted to deal in foreign currency, that is, buying and selling foreign currency, and processing international and domestic foreign currency transactions until further notice.
Rolink Finance (Private) Limited, which has been suspended from operating as a bureau de charge, has been slapped with a fine of US$120 000 or its equivalent in Zimbabwe dollars.
“The suspension is a result of breaches of the Exchange Control (Authorised Dealers with Limited Authority) Order, Statutory Instrument 104 of 2015 and Exchange Control Circular Number 2 of 2021 issued to Authorised Dealers with Limited Authority (ADLAs),” said the RBZ.
“The suspension of its operating licence does not relieve Rolink Finance (Private) Limited of any outstanding obligations it incurred or had at the time of suspension of the licence.”-The Chronicle
