Exchange Control Regulations,1996 (Statutory instrument 109 of 1996)

Statutory instrument 109 of 1996

Exchange Control Regulations,1996

S1s. 109/1996, 258A/1997, 89/ 2003, 5/2004, 25/2005.

ARRANGEMENT OF REGULATIONS

PART I

PRELIMINARY

3. Determination of residence.

PART II

DEALINGS IN FOREIGN CURRENCY

4. Dealings in foreign currency.
5. Money receivable outside Zimbabwe.

PART III

FOREIGN CURRENCY ACCOUNTS

6. Interpretation in Part III.
7. Right to open and operate foreign currency account.
8. Denominated currencies.
9. Deposits and withdrawals from foreign currency accounts.

PART IV

CONTROL OF PAYMENTS

10. Payments in Zimbabwe.
11. Payments outside Zimbabwe.

PART V

SECURITIES

12. Issue of Zimbabwean-registered securities.
13. Transfer of Zimbabwean-registered securities and coupons.
14. Issue of bearer certificates and coupons.
15. Foreign currency securities.
16. Duties of persons keeping registers of securities.
17. Special provisions for securities listed on Zimbabwe Stock Exchange.
18. Validation of certain transfers.
19. Presumptions re mode and place of transfer of securities.

PART VI

IMPORTS ANDEXPORTS

20. Export of currency, etc.
21. Export of goods.
22. Departure or transit lounge.
23. Import of Zimbabwean currency.
24. Payment for imports.

PART VII

INSURANCEPOLICIES, SETTLEMENTS,BORROWINGS AND INVESTMENTS

25. Transfer of insurance policies.
27. Borrowings, lendings and investments: foreign-controlled organisations.

PART VIII

GENERAL

28. Remittability of funds.
29. Grant of permission, authority, etc.
30. [Repealed]
31. Export processing zones.
32. Blocked accounts.
33. Persons leaving Zimbabwe.
34. Declarations by travellers.
35. Authorised dealers and other persons to comply with directions.
36. Supervision of authorised dealers.
37. Penalties for failure by authorised dealers to comply with regulations or directions.
39. General provisions re directions, authorities, etc.
41. Power to require information and search persons and premises.
42. Authorised officers and their powers.
44. Effect of regulations on negotiable instruments.
45. Effect of regulations on proceedings for recovery of debts.
47. Destruction of records and obstruction of officers.
48. Disposal of forfeited property.
49. Provisions having extra-territorial operation.
50. Repeals and savings.

SCHEDULES

First Schedule: Form of declaration re residence.

Second Schedule: Provisions having extras-territorial operation. Third Schedule: Repealed regulations.

IT is hereby notified that His Excellency the President, in terms section 2 of the Exchange Control Act [Chapter 22:05], has made the following regulations:—

PART I

PRELIMINARY

1. Title

These regulations may be cited as the Exchange Control Regulations, 1996.

                                                                                              2.   Interpretation

In these regulations—

“authorised dealer” means—

• the Reserve Bank; and
• any commercial bank or accepting house, or any class thereof, which the Reserve Bank, by order, declares to be an authorised dealer for the purposes of these regulations;

“authorised officer” means a person who is an authorised officer in terms of section 42;

“bearer certificate” means a certificate of title to a security the delivery of which, with our without endorsement, transfers title to the security;

“certificate of title”, in relation to a security, means a document whereby a person who has issued or will issue the security recognises another person’s title to the security and, in the case of any such documents with coupons, whether they are attached or on separate coupon sheets, includes any coupons, which have not been detached;

“coupon” means a coupon representing dividends or interest on a security;

“equivalent value in Zimbabwean currency” means the equivalent in Zimbabwean currency after payment of any usual and proper charges of the authorised dealer concerned;

“exchange control authority” means—

• the Minister, in relation to every provision of these regulations; and
• the Reserve Bank, in relation to such of the provisions of these regulations as the Minister may specify by statutory instrument; and
• in relation to any particular provision of these regulations, any authorised dealer that is declared, by order, to be an exchange control authority for the purposes of that provision;

“foreign currency” means—

• a foreign currency note or coin; or
• a foreign currency document;

“foreign currency account” means an account opened with a commercial or accepting house in Zimbabwe in terms of Part III;

“foreign currency document” means any bill of exchange, travellers cheque, letter of credit, draft or other document which—

• is issued outside Zimbabwe and is intended to enable the person to whom it is issued to obtain, directly or indirectly, Zimbabwean currency or any foreign currency note or coin from some other person on the credit of the person issuing the document;
• is issued in Zimbabwe and is intended to enable the person to whom it is issued to obtain, directly or indirectly, any foreign currency note or coin from some other person on the credit of the person issuing the document;

“foreign currency note or coin” means any currency, other than Zimbabwean currency or gold, which is legal tender in a country other than Zimbabwe.

“foreign exchange bureau de change” …

[Definition repealed by s.i 89 of 2003.]

“foreign resident” means a person who is not a Zimbabwean resident;

“free funds” means money which is lawfully held outside Zimbabwe by a Zimbabwean resident and which was acquired by him otherwise than as the proceeds of any trade, business or other gainful occupation or activity carried on by him in Zimbabwe;

“gold” means gold in any form, including gold coins;

“goods” means movable property of any kind, including animals.

“insurance policy” means any policy securing the payment of a capital sum or an annuity on the occurrence of a specified event which is certain to happen, and includes a policy—

• by which the payment of money is assured on death, except death by accident only, or the happening of any contingency dependent on human life; or
• which secures the payment of an immediate annuity; and the reference in this definition to the occurrence of a specified event which is certain to happen includes the occurrence which is certain to happen of one or more specified events none of which by itself is certain to happen;

“listed”, in relation to a security, means included in the official list of securities kept by the committee of the Zimbabwe Stock Exchange in terms of section 16 of the Zimbabwe Stock Exchange Act [Chapter 24:18];

“Minister” means the Minister responsible for finance;

“nominee”, in relation to a security, coupon or insurance policy, means a person– (a)      has no beneficial interest in the security, coupon or insurance policy; and

(b) is not entitled to exercise any rights in relation to the security, coupon or insurance policy except in accordance with instructions given by another person;

“note” includes a part of a note;

“order” means an order made in terms of section 40;

“prescribed” means prescribed in an order;

“registered”, in relation to a security, means registered or inscribed in any book, file, index or other record in which securities are registered;

“repealed regulations” means the regulations repealed by section 50;

“Reserve Bank” means the Reserve Bank of Zimbabwe established by the Reserve Bank of Zimbabwe Act [Chapter 22:15];

“security” means any of the following—

• shares, stocks, bonds, debentures and debenture stock;
• units under a unit trust scheme;
• shares in an oil royalty;
• a renounceable letter of allotment or a letter of rights;
• a warrant conferring an option to acquire, or a deposit certificate in respect of, anything referred to in paragraphs (1) to (d).

but does not include a bill of exchange or a promissory note;

“traveller” means a person who— (a) has just entered Zimbabwe; or

• is on a train or aircraft destined for Zimbabwe; or
• is about to depart from Zimbabwe, whether temporarily or otherwise.

“unit”, in relation to a unit trust scheme, means a right or interest, whether described as a unit or otherwise, which may be acquired under the scheme;

“unit trust scheme” means an arrangement the purpose or effect of which is to enable persons to participate in or receive profits or income arising from the acquisition, holding, management or disposal of property of any description, where—

• the property is held in trust for the participants; and
• the participants do not have day-to-day control over the management of the property, whether or not they have the right to be consulted or to give directions in regard to its management; and (c) the arrangement has either or both of the following characteristics—
  • the participants’ contributions and the profits or income out of which payments are to be made are pooled;
  • the property is managed as a whole;

“Zimbabwean currency” means currency which has been issued under the Reserve Bank of Zimbabwe Act

[Chapter 22:15] and which has not been demonetised under that Act;

“Zimbabwean resident” means a person who is regarded as a Zimbabwean resident in terms of section 3.

                                                                                    3.   Determination of residence

(1) Subject to subsection (2), for the purposes of these regulations—

• an individual shall be regarded as a Zimbabwean resident if he is ordinarily resident in Zimbabwe;
• an individual ordinarily resides partly in Zimbabwe and partly in another country shall be regarded as a Zimbabwean resident whenever he is in Zimbabwe.
• A company or other body corporate shall be regarded as a Zimbabwean resident if— (i) it is incorporated in Zimbabwe; or
  • it has its head office or principal place of business in Zimbabwe;
• an unincorporated association if persons shall be regarded as a Zimbabwean resident if— (i) it is incorporated in Zimbabwe; or
  • it has its head office or principal place of business in Zimbabwe;
• the executor or administrator of a deceased estate shall be regarded, for the purpose of the administration, liquidation and distribution of the estate, as a resident of the country in which the deceased person ordinarily resided at the time of his death.

(2) If—

• it is not possible to ascertain the country of which a person is a resident; or
• a person is a resident of two or more countries at the same time; an exchange control authority may give direction that that person shall be regarded, for the purposes of these regulations or any particular provision of these regulations, as being resident or as not being resident, as the case may be, in such country or countries as the exchange control authority may specify. PART II