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Friday, March 29, 2024
HomeBusinessRBZ Intensifies Surveillance Of Suspicious Accounts

RBZ Intensifies Surveillance Of Suspicious Accounts

The Reserve Bank of Zimbabwe (RBZ) through its Financial Intelligence Unit (FIU)  is stepping up efforts to curb illicit financial activities that are suspected to be fueling exchange rate fluctuations lately, with more suspected accounts expected to be frozen going forward.

The latest crackdown, befell five companies, Bill Height Investments Private Limited, Landela Investments, Rimosa Trading Private Limited, Fossil Agro (Pvt) Ptd and Traverze Travel (Pvt) Ltd whose accounts were frozen by all banks early this week at the behest of the Central Bank.

However, following scrutiny of suspicious transactions the Central Bank has since ordered banks to unfreeze the accounts as of yesterday.

Last week RBZ ordered banks to freeze company accounts held by Sakunda Holdings, Croco Motors, Access Finance and Spartan Security and related entities on suspicion they were engaging in illicit foreign currency activities that were spiraling the exchange rate.

The Bank is currently seized with investigations into the activities of the companies’ transactions and the accounts remain frozen.

In a statement, FIU director General, Mirirai Chiremba confirmed the company accounts were still under scrutiny.

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“We have become aware of subsequent false social media reports suggesting that a directive has since been issued unfreezing some or all the said accounts. We advise that accounts of the entities named in the directive remain frozen, pending finalization of our analyses,” said Chiremba.

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Earlier this year, Finance and Economic Development Minister, Mthuli Ncube revealed that the ministry had the intelligence of a particular company that was flooding its RTGS balances through its agents in the parallel market to buy foreign currency.

This he said was fueling demand for foreign currency hence spiking the exchange rate.

Worryingly, the government is yet to make any arrests so far, and this is slowly denigrating positive sentiments earlier generated by the surveillance of company accounts.

The exchange rate has since started spiralling again this week, following a major tumble by close of last week when the Central Bank froze the aforementioned accounts.

 

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