Zivanai Dhewa
… As Gvt tightens its Regulatory Systems
Virtual Asset Service Providers (VASP) will soon be forced to keep a record of their clients and report any anomaly in their transactions following Government approval for the amendment of the Securities and Exchange Act (Chapter 24:25).
Speaking during the 23rd Post Cabinet Press Briefing, Minister of Information, Publicity and Broadcasting Services, Senator Monica Mutsvangwa, advised that Cabinet had approved the Principles of the Money Laundering and Proceeds of Crime Act (Chapter 9:24) and the Securities and Exchange Act.
“The Nation is advised that the Money Laundering and Proceeds of Crime Act will be amended to include proliferation financing, as well as cooperation and coordination among relevant authorities to ensure compatibility of money laundering, counterfeiting, terrorism and Proliferation Financing requirements with Data Protection and Privacy rules.
“The definition of securities will widened to include Virtual Asset Service Providers, through amending the Securities and Exchange Act,” said Minister Mutsvangwa
In bid to monitor activities of money laundering and terrorist financing, Minister Mutsvangwa said, “Cabinet reports that the Money Laundering and Proceeds of Crime Act will be amended to provide for identification and assessment of money laundering and terrorist financing risks that may arise in relation to Virtual assets, act and activities.”
While traditional banks have a client base in close proximity of its offices, VASP has clients across the globe. It is therefore the responsibility of the Government to supervise its activities, hence the stringent measures.
“Amendments to the Act will also be made to allow supervisors of Virtual Asset Service Providers comply with set preventive measures. Furthermore, amendments will be made to allow supervisors of VASP some legal basis for exchanging information with their foreign counterparts,” Minister Mutsvangwa concluded.
This new regulation will prevent criminals or terrorists from exploiting the country’s jurisdiction.
