Zimbabwe’s apex bank, the Reserve Bank of Zimbabwe (RBZ) has refuted claims that the country has been blacklisted over terrorist financing.
This was after the European Commission recently released a list of high-risk Third World countries with ‘strategic deficiencies’ with regards to anti-money laundering and countering terrorist financing.
On Thursday, the European Union (EU) said under the Anti-Money Laundering Directive (AMLD) it has revised its list to take into account developments at the international level since 2018, and that the “new list is now better aligned with the lists published by the FATF (Financial Action Task Force)”.
Terrorist financing can involve funds raised from legitimate sources, such as personal donations and profits from businesses and charitable organizations. It can also come from criminal sources.
Countries listed included The Bahamas, Barbados, Jamaica, along with Botswana, Cambodia, Ghana, Mauritius, Mongolia, Myanmar, Nicaragua, Panama and Zimbabwe.
RBZ governor Dr John Mangudya has moved to clarify that Zimbabwe been included on the list is not tantamount to being blacklisted for terrorist financing.
“Zimbabwe is a member of the Financial Action Task Force (FATF) Global Community. The FATF is responsible for setting and continuously updating international standards on Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT).
“Through its network of regional bodies,the FATF periodically assesses countries AML/CFT systems to identify any gaps that need to be addressed. Zimbabwe was assessed in 2015 and the resultant Mutual Evaluation Report was adopted and published in September 2016.
“The Report identifed some gaps and, in line with the FATF procedures, the country was given five years (up to September 2021) to address all the identified gaps.
“Zimbabwe has since addressed almost all the legislative and institutional gaps, with the result that the country is now rated Fully Compliant or Largely Compliant in thirty-three out of the Forty FATF Recommendations, which is one of the best Technical Compliance ratings in the region,” said the central bank governor.
“Key outstanding deciencies relate to effectiveness in implementing the AML/CFT laws and policies. In this regard the country is working closely with the FATF and the regional AML/CFT body, the Eastern and Southern Africa Anti Money Laundering Group, and is making good progress.
Dr Mangudya added that Zimbabwe was in the process of fixing the loopholes.
“It is the practice to publish the list of countries that have been assessed and have AML/CFT gaps, and the list is updated three times a year after the FATF Plenary Meetings. It is also the practice of the European Union to adopt the FATF list and circulate it within its member countries.
“Zimbabwe is on what is referred to as a list, that is, of countries that are cooperating with the FATF and making progress. A grey list is not a blacklist. A black list is for high risk and uncooperative countries.
“Zimbabwe is not unique on this grey list as other countries from the region and beyond, that have so far undergone the FATF assessment, are or have been on the list, while others will be added as and when the results of their assessments come out.
“The bank wishes to stress that at no point has Zimbabwe ever been accused of funding terrorism, whether by the FATF, the EU or by any State or organisation.”
According to an Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) follow-up report on Zimbabwe, which was released last year, the country “made progress in addressing some of the technical compliance deficiencies identified in its 2016 Mutual Evaluation Report,” and was re-rated on 10 recommendations.