StanChart Zimbabwe in sanctions trap

Standard Chartered Bank Zimbabwe will with effect from August 31 2015 cease to process all United States Dollar cross border transactions after the bank's vendor in New York, US, changed its service terms in a move that is believed to be part of the sanctions that are currently hitting Zimbabwe.

The country is specified by the US Office of Foreign Assets Control. Sources say the move will effectively close accounts linked to high risk and politically exposed clients.

According to an internal memo,with effect from this month end, StanChart will no longer process US dollar cross border payments including but not limited to outward telegraphic transfers, letters of credit and cheque transactions.

This, however, will not impact on customers' ability to transact in any other major currencies including the British pound, South African rand and the Euro.