Zimbabwe faces crucial FATF test

Zimbabwe's anti-money laundering and counter-terrorism financing framework is set to undergo one of its most important examinations yet, with international assessors preparing to evaluate not only the country's legal and regulatory systems but also their effectiveness in combating financial crime.

According to Financial Intelligence Unit director-general Oliver Chiperesa, Zimbabwe has made significant progress in strengthening its financial crime-fighting framework since its last assessment in 2015. However, the upcoming review under the standards of the Financial Action Task Force (FATF) will place greater emphasis on tangible outcomes rather than the existence of laws and institutions alone.

Zimbabwe is preparing for a mutual evaluation under the FATF framework, the global benchmark for combating money laundering, terrorism financing and proliferation financing. The process begins this year and is regarded as a critical measure of a country's integrity within the international financial system.

"The bar has been set higher this time around, where the assessors will come and check the effectiveness with which we are implementing anti-money laundering measures," Chiperesa said.

Unlike previous evaluations that largely focused on technical compliance, the current FATF methodology requires countries to demonstrate measurable results, including successful prosecutions, convictions, asset recoveries and a reduction in financial crime risks.

The assessment carries significant implications for Zimbabwe's international standing. Countries that perform poorly risk increased scrutiny from global financial institutions, potential restrictions on correspondent banking relationships and reduced investor confidence. Strong ratings, on the other hand, can enhance credibility and facilitate international trade and investment flows.

Chiperesa explained that the FATF standards are designed to protect the integrity of the global financial system by preventing criminals from exploiting weaknesses in individual jurisdictions.

"These standards have been put in place to make sure that weaknesses in one country do not corrupt the rest of the global financial system," he said.

As financial transactions become increasingly digitised and cross-border fund transfers occur within seconds, authorities worldwide face growing challenges in detecting and intercepting illicit financial flows.

Zimbabwe's participation in the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) has strengthened regional cooperation and information-sharing mechanisms aimed at closing loopholes exploited by criminal networks.

"Whenever they commit a crime in one country and channel proceeds into another country, we have now built a global and regional network that will make it much easier to investigate those cases, bring the perpetrators to book and also to identify the assets and ensure they are confiscated," Chiperesa said.

In preparation for the evaluation, the Financial Intelligence Unit has intensified collaboration with law enforcement agencies and other stakeholders to improve investigative outcomes and strengthen prosecution efforts.

Authorities are focusing on increasing the number of money laundering cases brought before the courts, improving asset recovery rates and ensuring that financial criminals are held accountable.

"Our challenge now going forward is to use that framework, put that framework to good use, to actually produce more and more results in terms of the number of cases that go through the courts in terms of money laundering, as well as the assets that are recovered," Chiperesa said.

The country's efforts are being guided by the Anti-Money Laundering National Strategy 2025-2030, a five-year roadmap that outlines specific targets and responsibilities for institutions involved in combating financial crime.

The strategy reflects a broader transition from building legal and institutional frameworks to measuring real-world impact and effectiveness.

"We have been effective to a large extent, but we are not satisfied with the level of effectiveness that we have reached at this stage. We are at a stage where our anti-money laundering regime is still developing," Chiperesa said.

While acknowledging progress in prosecutions and asset seizures, he noted that illicit financial flows continue to undermine economic development by diverting resources that could otherwise support infrastructure development, healthcare services and broader economic growth.

"We haven't yet reached the highest level of effectiveness that we would want to see if our country is to move forward in terms of arresting illicit financial flows and ensuring that resources are rechannelled to development," he said.

The forthcoming FATF evaluation is therefore expected to serve as a key benchmark of Zimbabwe's progress in combating financial crime and strengthening the integrity of its financial system.

Beyond compliance, the assessment will provide an opportunity for Zimbabwe to demonstrate its commitment to transparency, accountability and international best practice, while reinforcing confidence among global investors and financial institutions that the country is actively addressing the risks posed by money laundering and other forms of illicit finance.