Reserve Bank Of Zimbabwe has imposed limits on the amounts banks may transfer through a payment platform with 2 million customers, as it tries to curtail illicit transactions and cash laundering that it claims contributed to a foreign money rout.
In a letter dated May 27, the central bank’s financial intelligence unit ordered ZimSwitch Technologies, the homeowners of the Zimswitch Instantaneous Payment Interchange Technology (Zipit) system, to implement daily and monthly limits of Z$20,000 ($800) and Z$100,000, respectively, with immediate effect. Zipt is utilized by mobile-phone customers to send money to one another, according to the company’s web site.
“The limits have been arrived at cognizant of the truth that only a few Zimbabweans earn greater than Z$100,000 per day, and those that do have other payment choices available for high-value transactions,” the intelligence unit stated within the letter, which was also sent to the country’s 19 commercial lenders.
The curbs would remain until safeguards had been in place to reduce the danger of cash laundering, the central financial institution stated.
Zabron Chilakalaka, the deputy chief executive of ZimSwitch, declined to touch upon whether or not the platform had been abused. “We have began engagements with our member banks to see how we will adjust to the directive,” he stated
The central-bank controls were meant to make sure that cash flowed into the formal financial system rather than illicit transactions, stated Sijabuliso Biyam, the chief executive of the Bankers Association of Zimbabwe. “It’s a cleaning-up exercise meant to make sure that the quantum of transactions are in line with the market.”