A NEWLY installed Currency Stabilisation Task Force (CSTF) will tighten screws on mobile money platforms which have become an instrument for the illegal trade of foreign exchange, Finance minister Mthuli Ncube has said.
Government on Wednesday introduced a raft of measures to stabilise the exchange rate and bring down inflation to sustainable levels in order to achieve macro-economic stability after the parallel market rates spiralled out of control.
Speaking at a hastily arranged Press conference, Ncube said government had decided to implement a holistic package of key policy measures in order to stabilise the exchange rate.
Among the regulations being reviewed include those involving mobile money platforms.
“While mobile money platforms have made a significant contribution to facilitating trade and payments in the country, they have also become an instrument which is being used by unscrupulous businesses to illegally trade foreign exchange and undermine the economy,” Ncube said.
“The RBZ is, therefore, currently reviewing all the regulations covering such platforms. In particular, it is intended to: (Firstly) place limits on daily bulk payer transactions. (Secondly), to ensure compliance with the 2% IMTT on bulk payers.“
“Additionally, the daily returns being submitted by the mobile platforms to the Financial Intelligence Unit of the RBZ will be scrutinised very carefully by the CSTF to ensure that all transactions are legitimate and in accordance with the financial regulations in place.”
He concluded: “Finally, I would like to state that as the financial authorities of the country, it is our duty to undertake a strong communications drive to explain all the measures we are introducing, and their intended outcomes.”
Ncube assure that it is the determination of the President Emmerson Mnangagwa led government, to work closely with all stakeholders to achieve exchange rate stability, reduce inflation and by the end of this year, put in place all the necessary building blocks to achieve high rates of growth, poverty reduction, and the other goals of Vision 2030.
Other regulatory measures
To ensure the success of the economic measures outlined above, certain regulatory changes would also be put into effect as a matter of urgency, Ncube said.
“Our laws and enforcement regime are not as effective as they should be when it comes to crimes relating to foreign exchange and financial fraud. The current legal and institutional framework relating to curbing of trading on the parallel market (are) inadequate,” Ncube said.
He added that government would be reviewing all the laws and institutional framework in order to bring them in line with international best practices and more importantly, monitor the effectiveness of institutions charged with implementing the laws.
The sanctions framework for illegal foreign exchange trading would be enhanced to provide for a range of effective proportionate and dissuasive sanctions, including more stringent criminal, civil and administrative penalties, Ncube concluded.
