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MONEY LAUNDERING AND PROCEEDS OF CRIME (AMENDMENT)
This Bill will amend the Money Laundering and Proceeds of Crime Act [Chapter 9:24], section 27 of the National Prosecuting Authority Act [Chapter 7:20], section 6 of the Criminal Matters (Mutual Assistance) Act [Chapter 9:06], section 87 of the Deeds Registries Act [Chapter 20:05], section 210 of the Customs and Excise Act [Chapter 23:02], section 5 of the Income Tax Act [Chapter 23:06], section 34A of the Revenue Authority Act [Chapter 23:11], section 360 of the Companies Act [Chapter 24:03] and the Bank Use Promotion Act [Chapter24:24] with a view to achieving the following: the enactment of a comprehensive legal framework to combat money laundering and terrorist financing:
- the implementation in domestic law of the International Convention for the Suppression of the Financing of Terrorism was adopted by the General Assembly of the United Nations Organisation by Resolution 54/109 of 9 December, 1999, and related UN Security Council Resolutions 1267 (of 15 October, 1999) and 1373 (of 28 September, 2001);
- the implementation in domestic law of 40 recommendations regarded by the Financial Action Task Force (FATF), as representing international standards to which all states should aspire;
- the strengthening of the legislative defences against misuse of our financial system for the purpose of money-laundering or the financing of terrorist activities.Since 1999 Zimbabwe has been a member of the Eastern and Southern African Anti Money Laundering Group, a body whose object is to adopt and implement measures to combat money-laundering and the financing of terrorism and serious crime. By virtue of its membership, Zimbabwe is pledged to implement recommendations issued by an inter-governmental organisation called the Financial Action Task Force, whose 40 recommendations are regarded as representing international standards to which all states should aspire. Failure to implement the recommendations will lead to Zimbabwe being increasingly isolated from the international financial system.The Eastern and Southern African Anti Money Laundering Group evaluates its members’ compliance with the 40 recommendations by sending teams of trained assessors from its member countries to visit each member state and assess the member’s legislation and financial systems. Zimbabwe was found not to be fully compliant with a number of recommendations.
The findings of the team, and the urgent need to remedy the deficiencies found by them, are the immediate occasion for this Bill.
In more detail, the individual provisions of the Bill are as follows:
This Clause sets out the Bill’s short title.
This clause sets out definitions of key words and phrases used in the Bill. Of particular note are the definitions of “competent authorities”; “document”; “Financial Action Task Force”
The principal act is amended by the amendment of section 3 on the Units and competent supervisory authorities’ co-operation in ensuring compliance with the Act.
Money Laundering and Proceeds of Crime (amendment) Clause 4
The principal Act is amended in section 4 Insertion of a new Chapter IA which shall give detail to the Financial Intelligence Unit.
Section 11 of the principal Act is amended in subsection (2) by the deletion and substitution to effect identification of and record keeping in relation to disclosures.
This clause makes an insertion of a new Part III in Chapter II in the principal act, on the Policy, Coordination and Risk factor of the Unit.
Amends section 13 in the interpretation section for Part I of Chapter III of the principal Act by inserting new definitions.
Amends section 15 of the principal Act, by being more specific to the property that is the subject matter to the prescribed transaction.
Amends section 20 of the principal Act is amended by the insertion of three new subsections, dealing with high risk customers and politically exposed persons.
Amends section 21 of the principal Act by inserting of a new paragraph (e1) in relation to compliance of previous sections of the principal act.