SecZim penalises market intermediaries
The Securities and Exchange Commission of Zimbabwe (SecZim), says it penalised five securities market intermediaries in the six months to June 2023 for failing to comply with the obligations under the Money Laundering and Proceeds of Crime Act.
SecZim’s mandate is to promote, develop and regulate capital markets through the formulation and implementation of appropriate rules and regulations to guide capital market operations.
According to a notice by SecZim, one securities dealing firm was penalised for having no official money laundering and proceeds of crime policy (AML/CFT), incomplete know your customer (KYC), and no execution of staff training.
After being penalised US$500, the firm was recommended to implement a corrective order and the Commission also recommended the removal of a compliance officer. The other dealing firm was penalised US$1500 for various deficiencies with the AML/CFT policy.
Two securities investment managers were fined US$1100 to US$1500 for various offenses. The highest penalty of US$5,000 was slapped on one securities investment manager for weak CDD/KYC documentation and no reporting of a suspicious transaction.
During the period under review, SecZim also imposed AML/CFT penalties for late submission of quarterly returns between January and June 2023.
The penalties, which ranged from US$100 up to US$1000, were imposed on securities investment managers, dealing firms and three investment managers.
According to the SecZim 2022 annual report, income for the year grew by 268 percent in nominal terms, while expenditure grew by 387 percent as costs tracked real inflationary developments in the economy.
The Commission achieved a profit of $297 million in nominal terms, but in inflation-adjusted terms, a loss of $36 million was recorded.
The Commission said it welcomed the Government’s effort in spearheading the establishment of the International Financial Services Center and looks forward to participating in its implementation.
SecZim has also targeted strengthening its supervisory function by dedicating more resources to the licensing, supervision, and surveillance department.
Funds permitting, the Commission plans to initiate work on the Capital Market Development Plan to ensure there is a coordinated national vision for the capital markets.-chronicle
