1. MONEY LAUNDERING and the ITC – Paper by Optimalegal to CSZ
ACRONYMS AND TERMS USED
POCA
Money Laundering and Proceeds of Crime Act
“ the Act “
[Chapter 9:24],No. 4 of 2013 enacted Zimbabwe 21st June,2013
w/o a Bill being gazetted or debated in Parliament
AML / CFT
Anti Money Laundering and Combating Financing of
Terrorism:measures or programs for combating ML + FT
CSO
DNFBPs
“competent supervisory authority” = any statutory body or authority
responsible for the licensing, registration, regulation or discipline of
“dodgies” [ including the CSO’s listed in Part II of the First Schedule of
the Act] required to co-operate with the FIU to ensure compliance by
their respective constituencies,
Designated Non Financial Businesses and Professions
“dodgies”
= FI’s + DNFBP’s
“dpoppae”
director, principal, officer, partner, professional, agent or
employee=persons madepersonally liable for breaching POCA –
incurring both criminal + civil penalties
ESAAMLG
FATF
FATF “Grey
list”
Eastern and Southern Africa Anti-Money Laundering Group,
founded in 1999 in Arusha with 16 member countries including
Zimbabwebeingthe first ESAAMLG country to be evaluated in
2006 after RBZ published its Guidelines
FINANCIAL ACTIONTASK FORCE:An inter-governmental body
established in 1989 with the mandate to set AML/CFT standards
and to monitor their implementation by all countries.The work of
the FATF is also endorsed and complemented by world bodies
such as the UN, IMF and the World Bank.July
2013,VladimirNechaev of the Russian Federation became
President .
countries with significant AML/CFT deficiencies but have given the
IMF high level political commitment to address them and are
working with the FATF to rectify their deficiencies. FATF calls on
all financial institutions, from member and non-member countries
using “ peer review”, to carry out enhanced due diligence when

2. conducting business with FI’s from the listed country.
Refers to the Forty Recommendations on AML/CFT, formulated by
FATF
Recommendat
the FATF and which all countries are expected to implement
ions
FATF
Standards
Articulates the FATF 49 Recommendations, the Interpretive Notes
accompanying the Recommendations and the Assessment Criteria
used by the FATF and FSRB assessors to measure a country’s
compliance with the Recommendations
“40+9”
Recommend
-ations
FI
F.I.I.E UNIT
The 40 FATF Recommendations came to be referred to as the
“40+9” Recommendations after they were revised after the ‘9/11’
terrorist attack, the 9 Special Recommendations on TF were
integrated into the 40 Recommendations
FinancialInstitutions,
Financial Intelligence Inspectorateand Evaluation Unit .
FATF
Standardsrequire every country to have this in place to receive,
analyze and disseminate (to law enforcement agencies)financial
intelligence.
Zimbabwe’s
FIU headed by
Director
FSRB
was established in 2004 as a department within RBZ but with a
statutory mandate separate from and independent of its host: sect
3 of the Bank Use Promotion Act [Chapter 24:24].
FATF Style Regional Bodies: regional bodies such as
ESAAMLGaffiliated to and working with the FATF in implementing
“40+9” inFSRBs’ member jurisdictions
KYC
Know Your Customer

3. Money Laundering: process by which criminals + associates
ML
“clean up” funds earned from criminal activities in order to
disguise the illicit origin of the funds, by channeling them into
/through formal financial systems into “legitimate”business .
MLRO
NPA
PG
PEPs
Money Laundering Reporting Officer
National Prosecuting Authorityheaded by Prosecutor General
Politically Exposed Persons: who hold high public office –
whereforregardedas representing a higher risk of corruption.
Regulated entities are therefore required to carry out enhanced
due diligence when transacting with a PEP+ their close relatives or
associatesto verify source of funds
Proliferation
Proliferation of Weapons of Mass Destruction:In 2008 FATF
mandate was expanded beyond combating ML and TF to combat
financing of proliferation of weapons of mass destruction - now reflected in the revised Recommendations.
STR
SUSPICIOUS TRANSACTION REPORT:
I.t.o. section 30 of the Act, all“dodgies”are required to submit an
STR to the FIU, whenever they handle a transaction where there is
suspicion of ML or TF or any other offence.
MINIMUM CONTENTS OF STR will be supplied to CSZ,
Members can download off Pages 59- 60 of the RBZ WWW
www.rbz.co.zw