John AdoyiThe Reserve Bank of Zimbabwe (RBZ) has announced a tough new policy introducing heavy fines for those who breach foreign exchange regulations, setting a minimum penalty of US$100,000 or 1 percent of the transaction value, whichever is higher.
The announcement, made on August 15 by RBZ Governor Dr. John Mushayavanhu, targets individuals, companies, and financial institutions involved in illegal or non-compliant foreign exchange transactions.
Join our WhatsApp ChannelThe central bank said the move is necessary to protect the integrity of Zimbabwe’s financial sector and restore confidence in trade and investment transactions.
“We have observed recurring incidences of non-compliance with exchange control rules and regulations across the economy. These incidents undermine the conduct of trade and investment transactions and compromise the integrity of the financial sector,” said Dr. Mushayavanhu.
The violations identified by the RBZ include failure to submit import and export documents on time, falsification of paperwork, concealing borrowed funds through multiple bank transfers, and overpricing imports. The bank warned that these practices distort official trade data and create opportunities for manipulation of the Willing-Buyer Willing-Seller foreign exchange market.
Additional breaches highlighted include failure to surrender export receipts, ignoring liquidation requirements, making unauthorized cross-border investments and “double dipping” — where businesses obtain foreign currency multiple times for the same purpose.
READ ALSO: Discover the Gold Trading Guide from JustMarkets
To address these challenges, the RBZ has raised penalties significantly and warned that it will not hesitate to suspend or revoke trading licenses for serious violations.
“The Reserve Bank has revised the penalty fees for non-compliance upwards to one percent of the transaction amount or one hundred thousand United States dollars, whichever is greater,” the policy statement added.
The central bank has also urged authorized dealers, money transfer agents, and corporates to strengthen internal controls and ensure full compliance with foreign exchange laws, cautioning that non-compliance will come at a heavy price.
Zimbabwe continues to face economic challenges, including currency instability and discrepancies between official and parallel foreign exchange markets.
The new enforcement measures are part of broader efforts to stabilize the currency and rebuild trust in the financial system.
