Insurance and Pension Sector in Zimbabwe Progressing in Anti-Money Laundering Efforts
Both sectors in Zimbabwe are prone to money laundering, and the first target of the authorities is combating white-collar crimes that contribute to increasing money laundering. Hence, the sectors have targeted the completion of an assessment regarding the country’s exposure to money laundering crimes. This assessment will inform a risk-based approach to AML/CFT supervision.
According to the FATF recommendations, all countries must identify, analyse, and understand the money laundering and terrorist financing risks for the state followed by an action to mitigate the risks effectively.
The insurance industry is more vulnerable to white-collar crimes than others since the financial flows are high. The IPEC is in the phase of enforcing sector risk assessment, which is expected to be completed by the end of the year. Following its completion, there will be more focus on AML/CFT supervision, according to IPEC.
Both of these sectors are linked to other companies in the finance industry. Hence, improving the AML compliance in the local pension and insurance industry is vital. The Zimbabwe Stock Exchange has several companies from the pension and insurance sector that can be a victim of white-collar crimes too.
Zimbabwe is also a member of the FATF Global Community, which sets and updates AML laws on international standards. According to the NRA in 2019, the country was at a medium risk of money laundering. Before it reaches higher levels, enhancing AML/CFT compliance is vital.
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