Between 2014 and 2018 Zimbabwe is estimated to have lost a cumulative US$4.5 billion to money laundering and other illicit flows.
Money laundering refers to the concealment of the origins of illegally obtained money, typically by means of transfers involving foreign banks or legitimate businesses.
Although the numbers are still high considering the size of the Zimbabwean economy, there has been a decline from prior years.
“The results of the assessment indicate that the assessed value of threat proceeds during the period 2014 – 2018 is estimated at US$4.5 billion dollars, giving an annual average of US$900 million per year, down from the US$1.8 billion figure in the last NRA in 2015,” said Finance and Economic Development Minister Mthuli Ncube.
The Minister attributed the improvement to “gold collection strategies” and the extensive use of electronic money.
“This is attributed to the improved gold collection strategies (from 6 tons to 24 tons per annum), the improved security arrangements in Chiadzwa diamond area, among others.
“The demand for imports also experienced a downward trend from 2014 to 2018. Furthermore, improved accounting led to the narrowing of the gap between exports and imports to US$1.3 billion, compared US$2.6 billion in the last NRA of 2015. Increased use of plastic and mobile money also contributed to the downward trend.”
Recently, the government approved the 2nd National Risk Assessment (NRA), indicating its commitment at political levels, towards the process.