First it was EcoCash and now ZIPIT is getting the same treatment. The Financial Intelligence Unit (previously an arm of the RBZ but now operating independently) has issued a directive to ZIPIT CEO Cyril Nyatsanza placing a daily and monthly limit on ZIPIT transactions.
The Directive dated 27 May reads;
Dear Mr Nyatsanza.
Temporary Downward Review of ZIPIT Limits to ZW$20 000 per Day and ZW$100 000 per Month
The FIU has noted that the existing ZIPIT transaction limits which have no monthly cap are being misused, primarily for illicit foreign currency transactions.
The current limits of ZW$100 000 per day allow a customer (subject to any bank-specific limits) to move about ZW$3 million per. month using a single account, and much more if he/she is multi-banked and/or uses third-party accounts.
The FIU has noted KYC shortcomings in the ZIPIT system that make it difficult for banks, regulators and law enforcement agencies to speedily identify counter-parties to a transaction, or to identify multi-banked users.
Until such a time hen adequate safeguards are built into ZIPIT system to minimize the money laundering risk, ZIMSWITCH is directed to implement, with immediate effect, daily and monthly ZIPIT limits of ZW$20 000 and ZW$100 000, respectively.
The limits have been arrived at cognizant of the reality that very few Zimbabweans earn more than ZW$100 000 per day
It’s no surprise that the FIU is now targeting ZIPIT the same way they’ve targeted EcoCash over the last few weeks.
Money changers started migrating from EcoCash to ZIPIT and OneMoney (which is also powered by ZIPIT) to move money way before the FIU sent the directive to EcoCash so it was only a matter of time before ZIPIT was under the microscope as well.
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