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The Reserve Bank of Zimbabwe (RBZ) has announced a forthcoming crackdown on businesses and individuals hoarding money in cash deposit boxes at banks, homes, and business premises.
Authorities say such practices are depriving the economy of much-needed liquidity, thereby stifling economic growth. During the presentation of his 2025 Monetary Policy Statement in February, RBZ Governor Dr. John Mushayavanhu highlighted the issue of financial disintermediation, where businesses, particularly manufacturers and informal retailers, fail to bank their earnings. Instead, they keep large sums of money in cash deposit boxes, violating the Anti-Money Laundering Act.
Dr. Mushayavanhu revealed that the Financial Intelligence Unit (FIU) of the RBZ would take decisive action against this malpractice. FIU director-general, Mr. Oliver Chiperesa, confirmed the imminent enforcement measures.
“You may recall that during the presentation of his 2025 Monetary Policy Statement, the RBZ Governor mentioned that businesses and individuals, especially manufacturers and informal retailers, were hoarding millions of dollars in their cash deposit boxes. This is depriving the economy of the much-needed liquidity,” Mr. Chiperesa stated.
He further explained that the FIU is currently finalizing regulations to ensure the crackdown is legally sound.
“Normally, cash deposit boxes are used to store important documents, but the current trend is that they are being used to store large sums of money outside the banking system, which is illegal according to the Anti-Money Laundering Act,” he said.
Authorities believe that increased use of the formal banking system will promote financial transparency and economic stability.
Mr. Chiperesa underscored the importance of preventing money laundering and terrorism financing, emphasizing that Zimbabwe’s removal from the Financial Action Task Force (FATF) grey list was a result of improved financial monitoring.
“We want to encourage growth and ensure that all transactions are accounted for in line with anti-money laundering and anti-terrorism regulations. We were removed from the FATF grey list because of the clean flow of money in our economy, and we want to maintain that achievement to support economic growth through attracting Foreign Direct Investment,” he added.
The FIU has expanded its operations, including the opening of new offices in Bulawayo, to strengthen the monitoring and enforcement of financial regulations.
However, officials warn that the hoarding of cash continues to pose a significant challenge to financial stability. Dr. Mushayavanhu noted that the market is showing signs of stability, with growing confidence in the Zimbabwe Gold (ZiG) currency. He expects an increase in local currency transactions, including fuel sales, as businesses and individuals embrace ZiG as a store of value and reliable medium of exchange.
To encourage savings and reduce cash hoarding, the RBZ has raised interest rates on savings accounts and revised prepaid credit limits upwards.
These measures, coupled with policies requiring 50 percent of quarterly corporate tax payments to be settled in local currency, are aimed at strengthening the financial system and ensuring continued economic stability.
