RBZ, Police go after car dealers
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THE Reserve Bank of Zimbabwe’s Financial Intelligence Unit (FIU) is heightening its surveillance on car dealers, some of whom are being suspected of money laundering, it has been learnt.
The authorities believe lack of regulation of the car dealership industry provides loopholes for illicit financial transactions.
FIU director-general Mr Oliver Chiperesa told The Sunday Mail that the country is estimated to be losing between US$1 billion and US$1,5 billion through money laundering.
“However, there is no international standard on car dealers but countries are left to add sectors they feel are at high risk of money laundering. As for us, we added the car dealership sector as one of the areas where money laundering could be taking place,” he said.
FIU is understood to be working with other stakeholders such as the police and the Central Vehicle Registry to enhance the regulatory framework for car dealers.
“So, at the moment, we actually don’t have a register to say who the registered car dealers in Zimbabwe are because we don’t have a regulatory authority that registers them. I think that’s going to be the starting point, so we still have a lot to do . . . So, the next step is to make sure that they are registered and regulated by someone who is not FIU. FIU only comes to deal with the anti-money laundering aspect . . .”
Mr Chiperesa said all records of car sales need to be scrutinised to ensure dealers are more accountable.
“There needs to be records of every car sold. It will be easier to follow up when records are maintained and suspicious transactions are reported. Sometimes, the transactions are not recorded because we use cash. At least, the easy thing about buying houses is that we can go to check at the Deeds Office when ownership changes, but with vehicles, one can buy a vehicle and not change ownership.”
If there was an industry regulator, he added, it would become easier to enforce record-keeping and report suspicious transactions.
Zimbabwe Republic Police acting commanding officer for the Commercial Crimes Division (Northern Region) Superintendent Godwin Mvurume said they are working together with FIU to combat money laundering in the car dealership sector.
“We have adopted what we call the follow-the-money concept. Financial crime is a financial benefit. The benefit is money. We are trying to follow the money and engage the courts in order to freeze and seize assets,” Superintendent Mvurume said.
“The car dealers are reluctant to supply information . . . We are engaging FIU so that we come up with a workable solution.”
In March 2022, Zimbabwe was removed from the grey list of the Financial Action Task Force after showing it was fully compliant in implementing global anti-money laundering standards and that its banks could not be used by those financing terrorism.
