In a stern warning to businesses bypassing traditional banking channels, the Reserve Bank of Zimbabwe (RBZ) has escalated its scrutiny on the growing misuse of self-deposit boxes and the proliferation of unregulated shadow banks. Governor John Mushayavhu has voiced concerns over the surge in businesses hoarding cash outside the formal banking system, a practice that has led to significant gaps in financial transparency.
Speaking at a recent monetary policy briefing, Mushayavhu noted with alarm that certain enterprises were deliberately circumventing banking regulations by withholding cash receipts, opting to store their funds in self-deposit boxes at financial institutions or private security firms.
“We cannot have a proliferation of banks that are not regulated,” Mushayavhu stated firmly. “Where self-deposit boxes have become unregulated storage sites, operating outside the remit of our financial oversight, it compromises the integrity of the banking system and the economy.”
The RBZ has made it clear that it is working in close partnership with the Financial Intelligence Unit (FIU) to identify businesses engaging in these practices. “We will be monitoring business turnover closely—specifically the cash component—and tracking its proper deposit into the banking system,” Mushayavhu added.
Under the Bank Use Promotion and Suppression of Mandatory Act (Zimbabwe), businesses are required to bank all cash receipts, a legal mandate aimed at encouraging formal financial participation and reducing informal sector risks. “In terms of the Bank Use Promotion and Suppression of Mandatory Act, you are supposed to bank all your take-ins,” Mushayavhu pointed out, warning that any evasion would attract severe penalties.
