We all woke up to a vivid article in the paper on Sunday 11 November 2018. So yes, President Emmerson Mnangagwa has used temporary powers for a new law that will see illegal currency traders being sentenced to up to ten years in jail, while ill-gotten wealth will be confiscated.
Brief Summary
The regulations are expected to come into effect on Monday the 12th of November 2018 and government will start tracking "unexplained" movements of money in the financial system. This is a big move, and everyone knows what has been going on in the financial systems. President Mnangagwa’s intervention – which involves amending the Exchange Control and Money Laundering and Proceeds of Crime Acts – is through constitutional provisions of the Presidential Powers (Temporary Measures) Act. To become permanent, it will have to be approved by Parliament in 6 months. Nonetheless, it's effective now and within those contingent 6 months a lot can happen.Verdict - The new law prescribes a maximum 10-year custodial sentence for illegal currency traders, and authorities will be empowered — through the Unexplained Wealth Orders Statute — to confiscate ill-gotten wealth. Where did you get your wealth, the government is coming for all. This almost sounds like Game of Thrones. Oh year, you can sound the trumpets.
In this wake of things, the Zimbabwe Anti-Corruption Commission and Zimbabwe Revenue Authority have been empowered to pursue perpetrators of financial crime. This Act has been signed into law and gazetted on Monday 12 November 2018.
There have been two legislative interventions which have been made in this wake. The first one is amendment to the Exchange Control Regulations (Exchange Control Act). The definition of ‘dealer’ is further clarified to assist judicial officers in interpreting the law and also the general public in appreciating the law.
The second amendment is to the Money Laundering (and Proceeds of Crimes) Act to provide for unexplained wealth and the respective enforcement agents where a public office holder or someone previously in that capacity fails to account for wealth accumulated in a manner suspected to be criminal. The Exchange Control Regulations have also been amended to introduce a presumption where one conducts themselves in a certain manner to be held liable for dealing
Reflections
Okay Ok, so much information about money and law here so let's break it down to see what it means for an ordinary person, investor, employee, business person in Zimbabwe.1. "Unexplained Wealth" - Do you have transaction in your banking systems that you do not have a full explanation for? Make sure you do not because whether or not those transactions amount to financial crime, if they are not fully explainable then you are in trouble. So take time to review your transactions if you are not quite sure of some transactions.
2. "Be Lawful" - There is a reason why the law is there. If there was no law, nothing would be controllable in this world and no country would be livable in peace. Be in the habit of upholding all laws that apply especially when you are fully aware of what the law says.
3. "Know The Law" - IGNORANCE OF THE LAW IS NOT AN EXCUSE. You cannot stand in a court of law and claim that you didn't know what the law says and get away with it. A simple you can't have your cake and eat it too scenario. Maybe not, but you get the point. Law is not very forgiving especially when it comes to ignorance. Lawyers "practice" law, Everyone lives in the confines of every law.
4. "Seek Legal Council" - Do this fast if you know or you suspect that you are in trouble. I know lawyers are quite pricey but they are a bunch you would really need to have in your corner when it comes to statutory issues.
5. "Take Time to review your comments" - Fine print. Some contracts have terms that are illegal that you may not be aware of. Again, you may need a lawyer here.
The Buckologist has always been against illegal business activities. We always advise our audience to adhere to the law in good faith. There are always legal ways of making money. It always feels good to know you have done everything straightforward, it makes you breathe much much better. All The Best!
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