The Reserve Bank of Zimbabwe’s Financial Intelligence Unit (FIU) has urged small-scale miners to comply with anti-money laundering (AML) regulations to protect the mining sector from greylisting, which would complicate financial transactions, hinder foreign investment, and damage the industry’s reputation.
Speaking at the Zimbabwe Miners Federation (ZMF) conference during Mine Entra 2024, FIU official Nkosilathi Mpofu stressed the need for collaboration with auditors and warned that non-compliance by miners or key buyers like Fidelity Gold Refinery could lead to greylisting, impacting operations and international trade.
Zimbabwe’s small-scale mining sector plays a vital role in the economy but remains vulnerable to illicit financial activities. Common money laundering tactics include manipulating sales figures, creating shell companies, using cash transactions, and inflating equipment costs to conceal the origins of funds.
The Financial Action Task Force (FATF) has identified these vulnerabilities and urges targeted AML measures, including due diligence and stronger cooperation between miners, authorities, and financial institutions. Zimbabwe, currently rated 36 out of 40 on FATF recommendations, aims to achieve full compliance by 2025.
