CBZ to start identifying & reporting account holders suspected of illegal forex deals

It looks like the meeting that the Reserve Bank of Zimbabwe (RBZ) had with captains of industry has started a wider domino effect against those dabbling on the black market. According to a report by ZimPriceCheck, CBZ Bank will start reporting those suspected of illegal forex deals to the RBZ’s Financial Intelligence Unit.

Reference is being made to the Press Release statement issued by the Reserve Bank of Zimbabwe and the Financial Intelligence Unit (FIU) on 30 September 2021 and 5 October 2021 respectively, on individuals participating in parallel market activities.

Both Regulators have cited great concern on the number of CBZ clients who are advertising parallel foreign currency transactions on different social media platforms, this in turn is fuelling exchange rate distortions in the foreign exchange market.

In a bid to curb the fuelling of exchange rate distortions and preserve the Group’s good image, CBZ shall fulfil its obligation of identifying such clients and reporting them to the FIU.

Additionally, all staff members are being advised to desist from participating in illegal foreign currency transactions, either on behalf of clients or for their own personal benefit.

Disciplinary action shall be taken against any staff member who breaches the contents of this Instruction Circular hence staff members are encouraged to use the legal designated channels to access foreign
currency.

It should be noted that clients and staff members identified by both Regulators to be involved in parallel market activities shall be blacklisted and barred from accessing financial services for the next 2 years.

Lastly, all staff members are being encouraged to identify any persons advertising parallel foreign currency transactions using the CBZ name on social media and report them to groupcompliance@cbz.co.zw, or forward the social media message to the following WhatsApp number
+263774132360.

Circular distributed by CBZ on illegal forex deals via ZimPriceCheck

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