Published: 2 hours ago

The Financial Intelligence Unit (FIU) has urged Zimbabwe's real estate sector to strengthen safeguards against illicit financial flows (IFFs), warning that the industry is increasingly being used to launder large sums of money.

FIU Director-General Oliver Chiperesa said in an interview that the country's informal economy, where cash-heavy transactions dominate, has created opportunities for criminals to divert funds into high-value assets like property and vehicles.

"What we then do is try to track the manifestations of those cash transactions," Chiperesa said. "They often appear in the form of real estate or car purchases, which is why real estate agents must implement robust anti-money laundering measures."

According to the Zimbabwe National Statistics Agency, the informal economy now accounts for 76.1% of all economic activity, a surge that has complicated regulatory oversight. Cash transactions in particular make it harder to detect and curb illicit activity.

Recent FIU investigations revealed companies diverting foreign currency into cash-heavy businesses and using couriers or directors to move funds outside formal channels. Some firms reportedly channelled forex earnings into personal accounts, withdrawing proceeds in bulk and storing them in safe deposit boxes. Others funnelled money to fuel dealers or essential goods merchants to convert electronic balances into hard cash.

The FIU estimates that Zimbabwe has lost US$6.15 billion to money laundering-related crimes over the past six years, with car dealerships, gold traders, and large corporations among the main enablers.

Chiperesa noted that while the FIU cannot enforce the adoption of electronic payments or the use of the Zimbabwe Gold currency, its work focuses on tracing cash transactions to identify major sources of illicit flows. "The whole purpose of a National Risk Assessment is to identify the activities generating the greatest illicit financial flows," he said.

The central bank estimates that at least US$2.5 billion in hard cash circulates within the informal economy, a figure that has grown alongside the sector. Analysts warn that without increased formalisation, these practices could threaten economic growth and government revenue.

Chiperesa also highlighted upcoming policy refinements under National Development Strategy 2 (2026–2030) aimed at encouraging business formalisation. "As anti-money laundering authorities, we want to support these policies because they help us track transactions and tackle illicit activities," he said.
- The Standard