News / National
Govt toughens punishment for money launderers
06 Jan 2014 at 05:27hrs | Views
GOVERNMENT has toughened punishment for money launderers and funders of terrorism activities in Africa.
In the extraordinary Government Gazette published Friday afternoon, President Robert Mugabe tightened on punishments handed down to people found on the wrong side of the law.
Zimbabwe passed the Money Laundering and Proceeds of Crime Act in June 2013, but Mugabe said "a number of deficiencies still remain and require to be addressed without delay in order for Zimbabwe to meet the deadline of January 7, 2014 set by the Financial Action Task Force".
Among other provisions of the law that are to be amended include a section which deals with powers that a director has when imposing fines to persons charged with money laundering.
According to a Guide to Zimbabwe Criminal Law, fines for crimes in level one to level 14 are between $20 and $5 000 and from the new law presented by Mugabe, the lowest fine for anyone convicted for money laundering is level 14 which attracts $5 000.
The fines can now also go up to $100 000.
The new law also provides legal mechanisms for the confiscation and recovery of assets found to be proceeds of serious crime and terrorist financing schemes.
The Act, according to the gazette, is crucial in curbing white collar crime in the country.
Zimbabwe is a member of the Eastern and Southern African Anti-money Laundering Group, a body which aims to combat money-laundering and the financing of terrorism and serious crime.
Money laundering is the process of converting dirty money into clean funds by using various methods.
Dirty money is that which was garnered through illegal means such as high ranking employees in large corporations diverting money to personal accounts, tax evasion, prostitution, or drug trafficking.
The most common ways to launder money are through the use of financial institutions (such as insurance companies and banks) or by setting up businesses and companies that serve as a front for receiving the illicit funds. In many cases, these businesses operate on cash-only, allowing the owners to avoid paper trail.
Although Zimbabwe has not witnessed many individuals being accused of money laundering, in 2011 the former Intermarket bank founder Nicholas Vingirai was accused of money laundering.
In the extraordinary Government Gazette published Friday afternoon, President Robert Mugabe tightened on punishments handed down to people found on the wrong side of the law.
Zimbabwe passed the Money Laundering and Proceeds of Crime Act in June 2013, but Mugabe said "a number of deficiencies still remain and require to be addressed without delay in order for Zimbabwe to meet the deadline of January 7, 2014 set by the Financial Action Task Force".
Among other provisions of the law that are to be amended include a section which deals with powers that a director has when imposing fines to persons charged with money laundering.
According to a Guide to Zimbabwe Criminal Law, fines for crimes in level one to level 14 are between $20 and $5 000 and from the new law presented by Mugabe, the lowest fine for anyone convicted for money laundering is level 14 which attracts $5 000.
The fines can now also go up to $100 000.
The Act, according to the gazette, is crucial in curbing white collar crime in the country.
Zimbabwe is a member of the Eastern and Southern African Anti-money Laundering Group, a body which aims to combat money-laundering and the financing of terrorism and serious crime.
Money laundering is the process of converting dirty money into clean funds by using various methods.
Dirty money is that which was garnered through illegal means such as high ranking employees in large corporations diverting money to personal accounts, tax evasion, prostitution, or drug trafficking.
The most common ways to launder money are through the use of financial institutions (such as insurance companies and banks) or by setting up businesses and companies that serve as a front for receiving the illicit funds. In many cases, these businesses operate on cash-only, allowing the owners to avoid paper trail.
Although Zimbabwe has not witnessed many individuals being accused of money laundering, in 2011 the former Intermarket bank founder Nicholas Vingirai was accused of money laundering.
Source - zimbabwefocus.com
