The Government has admitted that the country’s laws are not as effective as they should be when it comes to crimes relating to foreign exchange and financial fraud.
Addressing the media in the capital yesterday, Minister of Finance and Economic Development Mthuli Ncube said the government will be reviewing all the laws and institutional framework in order to bring them in line with international best practices.
“The current legal and institutional framework relating to the curbing of trading on the parallel market is quite inadequate.
“Government will be reviewing all the laws and institutional framework in order to bring them in line with international best practices and more importantly, monitor the effectiveness of institutions charged with implementing the laws.
“The sanctions framework for illegal foreign exchange trading will be enhanced to provide for a range of effective proportionate and dissuasive sanctions, including more stringent criminal, civil and administrative penalties,” he said.
Minister Ncube said that the government had decided to implement a holistic package of key policy measures in order to stabilise the exchange rate.
Among the regulations being reviewed include those involving mobile money platforms.
“While mobile money platforms have made a significant contribution to facilitating trade and payments in the country, they have also become an instrument which is being used by unscrupulous businesses to illegally trade foreign exchange and undermine the economy.
“The RBZ is, therefore, currently reviewing all the regulations covering such platforms. In particular, it is intended to: (Firstly) place limits on daily bulk payer transactions. (Secondly), to ensure compliance with the 2% IMTT on bulk payers,” he said.