Zimbabwe has never been accused of funding terrorism by any institution in the world, Reserve Bank of Zimbabwe (RBZ) governor Dr John Mangudya, has said.
He was reacting to reports carried by some sections of the private media last week, claiming that the European Union had blacklisted Zimbabwe over terrorist funding.
Zimbabwe is a member of the Financial Action Taskforce Global Community (FATF), which is responsible for setting and continuously updating international standards on anti-money laundering and combating financing of terrorism.
Through its network of regional bodies, the FATF periodically assesses countries’ systems to identify any gaps that need to be addressed. Zimbabwe was assessed in 2015 and the resultant mutual evaluation was adopted and published in September 2016.
The report identified some gaps and in line with FATF procedures and Zimbabwe was given five years to address all the issues raised.
Dr Mangudya said Zimbabwe has since addressed almost all the legislative and institutional gaps and the country is now rated fully compliant or largely compliant in 33 out of the 40 FATF recommendations, which is one of the best technical compliance ratings in the region.
Zimbabwe’s key outstanding deficiencies related to effectiveness in implementing the anti-money laundering/combating financing of terrorism laws and policies.
In this regard, Zimbabwe is working with the FATF and the regional anti-money-laundering/combating financing of terrorism body, the Eastern and Southern Africa Anti-Money Laundering Group and is making good progress.
Zimbabwe is on what is referred to as a grey list, which has countries that are cooperating with the FATF and making progress.
“A grey area is not a blacklist. A blacklist is for high risk and uncooperative countries. Zimbabwe is not unique on this grey area list as other countries from the region and beyond that have so far undergone the FATF assessment are or have been on the list while others will be added as and when the results of their assessments come out,” said Dr Mangudya.