CHAPTER 22:16

BALANCE OF PAYMENTS REPORTING ACT

Act 4/2004

ARRANGEMENT OF SECTIONS

Section

1. Short title.
3. Designation of exporters.
4. Declaration of reportable transactions.
5. Establishment of reporting systems.
6. Operating rules of reporting systems.
7. Reporting of reportable transactions.
8. Control of undesirable conduct in regard to reporting system.
9. Unauthorised access to or manipulation of reporting system.
10. Powers of entry and search.
11. Preservation of secrecy.
12. Use of confidential information for personal gain.
13. Suspension of rights of financial institution or designated exporter.
15. Reserve Bank to consult financial institutions and designated exporters and to observe rules of natural justice.
16. Exercise of functions by Reserve Bank.

AN ACT to provide for the reporting of transactions affecting the balance of payments of Zimbabwe; and to provide for matters connected with or incidental to the foregoing.

[Date of commencement: 27th August, 2004.]

1    Short title

This Act may be cited as the Balance of Payments Reporting Act [Chapter 22:16].

                       2    Interpretation

(1) In this Act—

“banking business” means the business of accepting deposits withdrawable or repayable on demand or after a fixed period or after notice and the employment of those deposits, in whole or in part, by lending or any other means for the account and at the risk of the person accepting the deposits;

“designated exporter” means a person declared in terms of section three to be a designated exporter;

“financial institution” means—

• a banking institution registered or required to be registered under the Banking Act [Chapter 24:20]; or
• a building society registered or required to be registered in terms of the Building Societies Act [Chapter 24:02]; or
• a person, other than a banking institution or building society, that carries on the business of buying, selling, exchanging and additionally, or alternatively, transferring foreign currency; or (d) any other person that carries on banking business in Zimbabwe;

“foreign currency” includes—

(a)   any currency which is legal tender in a country outside Zimbabwe; and (b)    any payment instruction which—

• is issued outside Zimbabwe and is intended to enable the person in whose favour it is issued to obtain, directly or indirectly, Zimbabwean currency or foreign currency from some other person on the credit of the person issuing the instruction; or
• is issued in Zimbabwe and is intended to enable the person in whose favour it is issued to obtain, directly or indirectly, foreign currency from some other person on the credit of the person issuing the instruction;

“Minister” means the Minister of Finance and Economic Development or any other Minister to whom the President may, from time to time, assign the administration of this Act;

“operating rules” means rules made in terms of subsection (1) of section six;

“payment instruction” means an instruction to a financial institution to transfer funds or make a payment, and includes—

(a)   a cheque, draft, banker’s acceptance, bill of exchange, travellers cheque or letter of credit; and (b)       an instruction made by electronic means;

“reportable transaction” means any transaction to which a financial institution or a designated exporter is a party and which—

• involves—
  • the purchase or sale of foreign currency; or
  • the exchange of foreign currency for Zimbabwean currency; or
  • the exchange of foreign currency of any particular kind for foreign currency of some other kind; or
  • the transfer of funds from or into Zimbabwe; or
  • the incurring of any debt, obligation or liability on the part of a Zimbabwean resident to make a payment outside Zimbabwe; or
  • the incurring of any debt, obligation or liability on the part of a foreign resident to make a payment in Zimbabwe;

or

• is declared to be a reportable transaction in terms of section four;

“reporting system” means a reporting system established in terms of subsection (1) of section five;

“Reserve Bank”, subject to section sixteen, means the Reserve Bank of Zimbabwe established by the Reserve Bank of Zimbabwe Act [Chapter 22:10];

“supervisor” means—