FIU Cracks Down On Businesses Manipulating Foreign Exchange Rates
By Business Reporter
The Zimbabwe Financial Intelligence Unit (FIU) expressed deep concern over businesses engaging in illegal forward pricing practices to manipulate the foreign exchange rate.
The FIU emphasized that such actions not only undermine the integrity of the market but also unfairly impact consumers who face unjustified pricing of goods and services as a result.
In a statement, the Financial Intelligence Unit said businesses are allowed to apply a margin of up to 10% above the interbank exchange rate, as stipulated by the law.
“The Financial Intelligence Unit (FIU) has noted with grave concern that some businesses are engaging in illegal forward pricing practices thereby manipulating the foreign exchange rate. In terms of the law, businesses are permitted to apply a margin a up to 10% above the interbank exchange rate,” read the statement
To combat this illicit activity and protect consumers, the FIU has announced immediate measures to escalate and widen remedial and punitive actions against businesses found guilty of manipulating foreign exchange rates.
“There is no justification for non-compliance with the legal margins in light of the recent implementation of a market determined interbank exchange rate system. The forward pricing and non-compliance with legal limit is being done at the detriment of the consumers who bear the brunt of the resultant unjustified pricing of goods and services.
“With immediate effect, the FIU will be escalating and widening remedial and punitive measures against delinquent businesses by not only imposing administrative fines but also directing that culprits’ bank accounts be frozen indefinitely and referring the culprits to relevant authorities for the suspension/revocation of trading or operating licenses and prosecution. Liability will also be extended to directors and owners of the concerned business,” warned FIU
