Zim removal from FATF, a confidence booster

The removal of Zimbabwe from the Financial Action Task Force (FATF)’s grey-list is yet another vote of confidence by the international community on the country.

The removal comes as the world continues to recognise the growing list of achievements Zimbabwe has scored within a short space of time.

Finance and Economic Development Minister, Professor Mthuli Ncube, while responding to the removal, said Zimbabwe was on the right track.

The global financial crime watch-dog the removed Zimbabwe from its “grey” watch-list after the country implemented enough and meaningful regulatory reforms.

Zimbabwe was placed on the FATF’s “grey list” in October 2019, following a Mutual Evaluation (assessment) process that identified a number of deficiencies in the country’s implementation of the AML/CFT Standards.

“I commend the National Task Force on AML/CFT comprising the Treasury, the Financial Intelligence Unit (FIU), the Reserve Bank of Zimbabwe and over 80 stakeholders drawn from both the public and private sectors on the successful implementation of the FATF Action Plan, whose contributions culminated in the de-listing of the country from the “grey list,” said Mthuli.

Mthuli said adherence to strict AML/CFT standards is not just a compliance requirement, but enhances the country’s image as a safe destination for investment; strengthens the domestic financial sector, and builds on the confidence stakeholders have in Zimbabwe as a committed and responsible member of the global financial ecosystem.
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“The fight against money laundering and terrorism financing therefore remains an ongoing process, which shall not end with the country’s exit from the “grey-list,” he said.

He said government, which through the Finance is responsible for overall AML/CFT oversight, will continue to provide all the necessary support to the FIU and to ensure continuous enhancement of the country’s capacity to combat money laundering and related financial crimes, for the good of the Zimbabwean economy.

The FATF was set up by the G7 nations to enforce anti-money laundering (AML) and combating of financing of terrorism (CFT) rules.

On its part, the FATF said after a site visit by its experts, it was convinced that Zimbabwe had now done enough financial regulatory reforms to be dropped from the list.

“The FATF congratulated Zimbabwe for the significant progress it has made in addressing the strategic AML/CFT deficiencies previously identified by the FATF and included in its action plan. Zimbabwe will no longer be subject to the FATF’s increased monitoring process. This comes after the country received an on-site visit,” FATF said in a statement.

Zimbabwe improved its risk-based supervision for financial institutions and other private businesses, developed penalties for violators, and increased access to up-to-date beneficial ownership data.-eBusiness Weekly