It Is Not Illegal To Hold Millions In Cash In Zimbabwe: Mthuli Ncube Tells Parliament

It Is Not Illegal To Have Large Amounts Of Cash In Zimbabwe: Mthuli Ncube

Finance Minister Mthuli Ncube has told Parliament that individuals in Zimbabwe can legally hold any amount of cash without limitations, meaning people are allowed to hold millions of United States dollars without breaking the law.

Ncube made the clarification during a parliamentary session, after lawmakers questioned authorities about individuals seen holding and distributing large sums of cash. The Finance Minister confirmed that while banks impose withdrawal limits, there are no legal restrictions on how much money an individual can possess.

The remarks came after Members of Parliament raised concerns about individuals allegedly holding large amounts of cash and making public donations, prompting questions about whether such actions violated exchange control laws.

MPs Raise Concerns Over Large Cash Holdings

The issue was first raised by a legislator who questioned whether authorities investigate individuals holding large amounts of cash, including philanthropists distributing money.

The legislator told Parliament:

“We have seen in the past individuals holding millions of cash, distributing and making donations. The Exchange Control Act of this country provides for limits on withdrawals of cash from our banking sector. Does the Minister of Home Affairs investigate such people such as Wicknell Chivayo and other alleged philanthropists?”

In response to the concerns, Minister of Home Affairs Kazembe Kazembe explained that withdrawal limits do not automatically render the possession of large sums illegal.

He said:

“Cash withdrawals have a limit of US$10,000 (approximately R185,000), but that does not translate to an offence if someone has more than US$10,000. What is limited is the withdrawal and that is controlled by the banks themselves.”

Kazembe added that the matter would fall under the financial authorities where necessary.

“As to people having more than US$10,000, I would defer that question to the Minister of Finance if that amounts to an offence.”

Mthuli Ncube Confirms No Limit On Cash Holdings

Finance Minister Mthuli Ncube then clarified that Zimbabwean law does not limit the amount of money individuals can hold.

He told Parliament:

“The law is very clear in terms of limiting withdrawals. It does limit withdrawals from the bank, but you can keep withdrawing for the next 10 days or 30 days. By that time, you will have a lot of money with you.”

He further stated:

“It is not illegal to be found in possession of that money at all. There is no illegality. Maybe there is a specific case that the Honourable Member wanted to put across, but generally there is no offence being made.”

Later, another legislator, Honourable Nyati, sought explicit confirmation on whether there is any legal limit on cash possession.

Nyati asked:

“I would like the Minister of Finance to confirm in this House that in Zimbabwe you are allowed to hold any amount of money you want to hold because in other countries there is a limitation.”

Ncube responded briefly:

“I confirm.”

MPs Question Banks Over Large Withdrawals

However, Honourable Madzivanyika raised concerns that banks were allegedly allowing large withdrawals exceeding the US$10,000 (approximately R185,000) limit.

He told Parliament:

“We have seen letters addressed to banks such as BancABC requesting withdrawals of such large sums of money. Yet the Exchange Control Act of this country limits withdrawals to US$10,000.”

Madzivanyika added:

“Honestly, holding cash is not an offence. However, withdrawing large sums of money beyond US$10,000 becomes an offence. But we have seen banks giving these large sums of money to individuals.”

Another legislator then raised a point of order, cautioning against relying on unverified claims.

The MP said:

“Madam Speaker, we are entertaining social media stories in this House. If the Honourable Member saw such letters and banks authorising such letters, please can they go to ZACC or to police.”

Minister Kazembe supported the position, stating that applying to withdraw money does not constitute a crime.

“Seeing a letter applying for money does not amount to a crime. An application is not a crime.”

He further urged MPs to submit formal complaints.

“Where the Honourable Member feels that money was actually withdrawn, then that is a specific case. I would ask the Honourable Member to put it in writing with all the necessary details.”

The Speaker ultimately ruled that the Ministers had been clear, urging the House to move on to the next business. The exchange has effectively clarified that while withdrawal limits exist, the Reserve Bank’s cap does not criminalise the stockpiling of cash.