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Zimbabwe’s forex black market crackdown shakes banks

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BY MEMORY MATARANYIKA

Zimbabwean bankers are fretting over compliance with government directives to root out “illegal foreign currency dealings, with the country’s biggest bank, CBZ, cautioning its employees against facilitating such deals as well as instructing them to report all suspicious accounts and transactions.

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This follows a meeting of the central bank and business leaders, including representatives for banks, on Monday.

Sources who attended Monday’s meeting said the governor blamed the banks for not reporting suspicious transactions.

Said a finance manager at a foreign-owned finance institution: “We are under pressure as an industry to do something.

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“The governor and other government officials are already exerting pressure on the industry to play a role in shielding the local currency and to protect the official foreign exchange market and that’s why banks have started to issue these cautions to employees.”

CBZ Bank group chief compliance officer Matthew Manyati and managing director Peter Zimunya said in a October 12circular to all departments that staff members were being “advised to desist from participating in illegal foreign currency transactions, either on behalf of clients or for their own personal” benefit.

“Disciplinary action shall be taken against any staff member, who breaches the contents of this instruction circular, hence staff members are encouraged to use the legally designated channels to access foreign currency,” further reads the circular.

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The Reserve Bank of Zimbabwe (RBZ) and the Financial Intelligence Unit had “cited great concern on the number of CBZ clients who are advertising parallel foreign currency transactions on different social media platforms”, highlighting that this in turn was “fuelling exchange rate distortions”.

CBZ has thus instructed its workers to “identify any persons advertising parallel foreign currency transactions using the CBZ name” on social media.

The RBZ – which has already blacklisted 77 individuals for money laundering – charges that some bank clients are openly advertising illegal parallel market forex rates on social media platforms quoting specific bank platforms.

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This, authorities in Harare argue, has resulted in price increases and a widening of the gap between official and unofficial forex rates.

The Zimbabwean dollar was on Wednesday trading around 1:175 against the US dollar on the parallel market compared to 1:90 on the official auction market, which has been sluggish.

In a communique released after the meeting on Monday, the central bank said the Zimbabwean bankers had committed to “enhancing reporting of suspicious transactions” as well as “promptly implementing regulatory directives on freezing of bank accounts for participants in illicit foreign currency transactions”.

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The FIU has separately directed local banks to institute monitoring measures aimed at rooting out bank accounts and debit cards that are being used for foreign currency dealings.

“Banks should implement a robust automated transaction monitoring mechanism to identify debit cards and the linked bank accounts that are being used frequently and in a pattern that raises suspicion.

“Banks must carry out further analysis to establish the source of funding into the accounts,” the FIU said in a notice to banks. – News24

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In the community

Low environmental crime prosecutions raise concern in Matabeleland North

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BY STAFF REPORTER

The National Prosecuting Authority (NPA) has raised alarm over the low number of environmental cases recorded and prosecuted in Matabeleland North Province, warning that weak enforcement risks emboldening offenders.

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Speaking at a multi-stakeholder engagement meeting organised by the Environmental Management Agency (EMA), Hwange-based public prosecutor Pride Mharadza said fewer than 15 EMA-related cases were recorded in the province in 2025, describing the situation as “deeply disappointing.”

“In Hwange, we only received one case last year involving the transport of hazardous substances without a permit,” Mharadza said. The accused, who had transported mercury, was convicted and fined US$500, with four months’ imprisonment suspended for five years.

Mharadza said Victoria Falls recorded no EMA cases in 2025, calling it “worrying that a whole station did not receive a single case.”

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Binga recorded two cases involving cyanide, one resulting in six months’ imprisonment and forfeiture of the chemical, while the other could not proceed to court due to the absence of a forensic report.

In Inyathi, a single case involved implementing a project without an Environmental Impact Assessment (EIA) certificate, resulting in a US$200 fine. Nkayi recorded one case of prohibited alluvial mining, leading to suspended sentences for 19 accused persons.

Meanwhile, Tsholotsho and Lupane reported no EMA cases during the year.

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Mharadza said delays in forensic reports, limited EMA representation, and weak collaboration between police and prosecutors were major obstacles to successful prosecution.

“The overall picture points to weak environmental law enforcement rather than an absence of environmental crimes,” she said. “Half the stations did not receive any EMA cases. Some prosecutors even said they do not know how to handle EMA cases because they are not receiving them.”

Mharadza urged law enforcement and prosecutors to take action, saying that successful prosecutions would “send a message to society” and strengthen environmental protection across the province.

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SOURCE: CITE

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War veteran Blessed Geza dies in exile

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BY STAFF REPORTER

War veteran Blessed Runesu Geza, who rose to national prominence after publicly calling for the resignation of President Emmerson Mnangagwa, has died in exile in South Africa, his family has announced.

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In a statement released on Friday, the Geza family said he died on Thursday morning at a cardiac hospital in South Africa after a battle with cancer.

“It is with profound sadness that we announce the passing of our hero Cde Blessed Runesu Geza, popularly known as Cde Bombshell,” the family said.

Geza, a liberation war veteran, gained a large following in recent years through his outspoken criticism of the government and his calls for political accountability, positioning himself as a vocal figure within Zimbabwe’s increasingly polarised political landscape.

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The family said Geza “touched many lives with his fight for justice to ensure that all Zimbabweans realise their aspirations,” and urged the public to remain strong during what it described as a trying moment.

They also cautioned Zimbabweans against fundraising initiatives linked to his death, warning that some individuals may seek to “cash in” on the tragedy.

“We encourage Zimbabweans to ignore any call for GoFundMe towards his funeral,” the statement said.

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Funeral arrangements are still being finalised and will be communicated in due course, the family added. They said a designated family spokesperson would be announced to handle all official communication.

Geza had been living outside Zimbabwe at the time of his death, having relocated to South Africa amid heightened political tensions.

 

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In the community

Tsholotsho man jailed for stealing and slaughtering neighbour’s goat

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BY STAFF REPORTER

A 31-year-old man from Tsholotsho has been sentenced to an effective six months in prison after being convicted of stealing and slaughtering his neighbour’s goat.

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The incident occurred on 11 July 2024 when the complainant released his herd to graze at Mhlahlo grazing land. One black-and-white goat failed to return, prompting the owner and fellow villagers to launch a search.

The search led to the accused’s homestead, where the complainant positively identified the carcass of his missing goat. The man initially denied involvement in the theft, but investigations revealed overwhelming evidence linking him to the crime.

He was arrested and placed in police custody but later escaped while being taken to the police station. The escape was promptly reported, leading to his re-arrest.

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The court sentenced the accused to 12 months’ imprisonment, with three months suspended on condition of good behaviour. A further three months were suspended on condition that he pays restitution amounting to ZAR1 500. He will therefore serve an effective six-month prison term.

In a statement, the National Prosecuting Authority of Zimbabwe commended communities for remaining vigilant and reporting crime promptly.

“Justice is strongest when citizens stand together against lawlessness. Silence and tolerance of crime only empower offenders,” the NPAZ said.

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