It’s worrying that it took the past two weeks for the government to know the evils of a black market, yet in their nature, black markets are known to have a negative impact on the economy. We are now seeing the government starting to pay attention to deal with black markets. The President went as far as to say that black markets should now be treated as a national security threat.
We know the conspiracy theory of bigwigs running the black markets, something that many Zimbabweans have long suspected. Well for the first time, the RBZ admitted that influential people are fuelling the rise of black markets on a wholesale scale. It’s surprising that the Reserve Bank of Zimbabwe (RBZ) know about this yet it seems like it hasn’t done anything to put out the black market. It even had the audacity of saying that the Central Intelligence Organisation, the Financial Intelligence Unit, commercial banks, and the police are failing to do their duty to stem the black markets.
What is the Financial Intelligence Unit?
You may have not noticed it but RBZ was blaming itself for failing to deal with black markets. Why am I saying so? The RBZ runs the Financial Intelligence Unit (FIU), which is an overarching institution that should deal with all crimes related to money in Zimbabwe. In RBZ’s own words, the FIU is a “Unit (that) exists as a Unit of the Reserve Bank of Zimbabwe, but has its own governing statutes, giving it a mandate distinct from that of the central bank”.
In-depth: Who is the Financial Intelligence Unit (FIU)
The Bank Use Promotion & Financial Intelligence Unit was established in 2004 in terms of section 3 of the Bank Use Promotion and Suppression of Money Laundering Act [Chapter 24:24].
The Unit exists as a Unit of the Reserve Bank of Zimbabwe, but has its own governing statutes, giving it a mandate distinct from that of the central bank.
Our Vision
To be a leader in the provision of high quality financial intelligence in the national, regional and international fight against money laundering and financing of terrorism and for ensuring the safety and integrity of Zimbabwe’s financial system.
Our Mission
To formulate and implement strategies to combat money laundering and financing of terrorism
To comply with FATF Standards by financial institutions and Designated Non Financial Businesses and Professions
To assist in the detection, investigation and prosecution of money laundering and terrorist financing offenses
To provide timely and quality information to law enforcement agencies and other stakeholders
Inside the FIU, there is a task force that is empowered by the RBZ to enforce its rules.
The current membership of the National Task Force includes representatives from the following organizations:
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Financial Intelligence Unit
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Ministry of Home Affairs
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Zimbabwe Republic Police
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Zimbabwe AntiCorruption Commission
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National Prosecuting Authority
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Zimbabwe Revenue Authority
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Department of Immigration
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Insurance and Pensions Commission
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Securities Exchange Commission of Zimbabwe
Take a look at that supposed taskforce. How can they all fail to stem black markets if their efforts are coordinated by RBZ? Yet it has the audacity to shame other organizations by saying that they are being incompetent. Apparently, the RBZ pulls the strings in this important institution. So why is it trying to hide behind its pointing finger and blame the police and commercial banks? Please RBZ own up to your incompetence guys. Was there any self-analysis by the RBZ before it threw the blame to others? If it had done self-evaluation (which would have shown that its FIU is not effective) then it stands to reason that it deliberately absolved itself yet it’s in the wrong.
After this, should people be blamed to think that that politicians and some well-politically connected businessman are running the black market? I suppose this is when the Finance Portfolio Committee comes in handy to grill the RBZ as to why it’s failing to deal with black markets.
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3 comments
Even during Gono’s tenure at RBZ he used make vague references to “known individuals” diverting cash to the black market, he used to call them ‘sacred cows’.
It is rather troubling that state security institutions continue to turn a blind eye to such matters even after operation restore order and all the remarks that E.D has made about crushing corruption. Instead they are only too eager to harass and threaten the small fish on the streets.
But, i think Mangudya and also Gono are in the wrong here because their unwillingness to blow the whistle on these people makes them complicit. They know the root of the problem but are not doing anything about it and yet want the rest of us to have confidence in them.
This is just propaganda from the rbz chief and you are all falling for it. There is nothing the FIU can do to correct the exchange disparity between real and imaginary money. The problem simply boils down to the very deceptive nature of the bond notes and rtgs balances. The rbz can’t continue to inject new money from nowhere into the economy and continue to claim that it is at par 1:1 with the US dollar. If things were that simple then why not just inject a billion trillion bond notes into the economy and Zimbabwe will instantly become the wealthiest country in the world?
Maybe these shadowy figures are the real people running the country, regardless of who is “president”