Towards Ingenious Technology and the Robust Enforcement of Financial Markets Laws to Curb Money Laundering in Zimbabwe

Abstract

Technology has positively contributed to the creation of financial markets and the facilitation of payments globally. The effective use of robust technology could enhance the consistent enforcement of financial market laws by curbing financial crimes in any country. This in turn would enhance the integrity of financial markets and promote the viability of financial markets. In relation to this, it appears that Zimbabwe has struggled to comply with international measures to combat money laundering and the financing of terrorism (AML/CFT) since it has poor financial market laws which are inconsistently enforced due inter alia to its poor money laundering detection mechanisms and inadequate resources. For instance, Zimbabwe has to date failed to make satisfactory progress to adopt and enforce adequate risk mitigation measures against money laundering practices in accordance with the Financial Action Task Force (FATF) recommendations. This is evidenced by the increased incidence of money laundering in Zimbabwean financial markets. Furthermore, the inconsistent enforcement of financial market laws has resulted in poor liquidity and the recent suspension of the Zimbabwe Stock Exchange (ZSE). The viability and integrity of the Zimbabwean financial market has thus been compromised. This article discusses the integration and use of robust technology in the Zimbabwean financial market to curb financial crimes such as money laundering and bank fraud. The adequacy of financial market laws and/or regulations will also be discussed vis-à-vis their consistent enforcement by relevant bodies such as the Financial Intelligence Inspectorate Evaluation Unit (FIU) in Zimbabwe. This is done to evaluate the use of technology to curb money laundering and promote a viable economy and financial market in Zimbabwe. It is submitted that the relevant authorities should promote the effective use of technological inventions like artificial intelligence (AI) and machine learning to curb money laundering, bank fraud and other related financial crimes in Zimbabwe.

The adequacy of the legal framework for combating money laundering and terrorist financing in Nigeria

“…Money laundering is growing at a phenomenal rate in Nigeria, and it presents challenges of a global dimension to policymakers, especially with regards to terrorist financing activities and the integrity of the financial markets and financial institutions [Chitimira and Munedzi (2021), OECD (2019); Haigner et al (2012), Kama (2005)]. The process of money laundering occurs in three stages, namely, placement, layering and integration [Chitimira and Ncube (2021), Ryder (2012); Lacey and George (2002/03)]. The placement stage of money laundering introduces the funds gained from criminal activities into the formal financial system [Chitimira and Ncube (2021), OECD (2019), Lastra (2012)].…”

“…Cryptocurrencies are conveniently used for money laundering as transactions are done anonymously from anywhere using the Internet (OECD, 2019). The second stage of layering involves the concealment of the criminal origin of the proceeds to mislead potential investigators and give the illicit funds an appearance as if they have a legal origin (Chitimira and Ncube, 2021). At this stage, money launderers may use offshore mechanisms or other devices to mislead investigators regarding the origin of the money (OECD, 2019; Tofangsaz, 2012).…”

“…Thus, tax authorities have a crucial role in identifying and reporting money laundering and terrorist financing activities in any country, including Nigeria (OECD, 2019). Money laundering is shrouded in mystery, its scope is difficult to measure (Gruji c and Šikman, 2020; Alldridge, 2003), and it is an economic crime which affects all countries in the world, including Nigeria [Chitimira and Ncube (2021); Gruji c and Šikman (2020); Stanley and Buckley (2016), Hopton (2016), Buchanan (2004)]. Money laundering is growing at a phenomenal rate in Nigeria, and it presents challenges of a global dimension to policymakers, especially with regards to terrorist financing activities and the integrity of the financial markets and financial institutions [Chitimira and Munedzi (2021), OECD (2019); Haigner et al (2012), Kama (2005)].…”

“…The process of money laundering occurs in three stages, namely, placement, layering and integration [Chitimira and Ncube (2021), Ryder (2012); Lacey and George (2002/03)]. The placement stage of money laundering introduces the funds gained from criminal activities into the formal financial system [Chitimira and Ncube (2021), OECD (2019), Lastra (2012)]. Cryptocurrencies are conveniently used for money laundering as transactions are done anonymously from anywhere using the Internet (OECD, 2019).…”

Tindak Pidana di Luar KUHP Pencucian Uang terhadap Kasus Gagal Bayar Pemilik Grup Kresna Terancam Dipidanakan 20 Tahun Pidana

“…Selain itu, tindak pidana pencucian uang adalah sering kali dilakukan dengan menggunakan skema yang melibatkan berbagai yurisdiksi hukum. Para pelaku memanfaatkan perbedaan aturan dan standar pengawasan keuangan antarnegara untuk menghindari deteksi dan penuntutan (Chitimira, 2021). Mereka dapat memanfaatkan negara-negara yang memiliki sistem pengawasan yang longgar atau bahkan menjadi tempat "pencucian" dana haram.…”