RBZ Announces Tough New US$100K Penalty For Forex Offenders

US$100K Penalty For Forex Offenders: RBZ Announces Huge Fines For Exchange Control Cheats

The Reserve Bank of Zimbabwe (RBZ) has announced massive fines for individuals, companies, and financial institutions found guilty of breaking exchange control rules. In a policy statement on 15 August 2025, RBZ Governor Dr John Mushayavanhu confirmed that offenders will now face penalties of 1% of the transaction value or US$100 000 (about R1.8 million) — whichever is greater.

Dr Mushayavanhu told the public:

“We have observed recurring incidences of non-compliance with exchange control rules and regulations across the economy. These incidents undermine the conduct of trade and investment transactions and compromise the integrity of the financial sector.”

Common Violations Highlighted

The Herald reports that according to the RBZ, breaches have taken many forms. These include failing to submit import and export documents on time, falsifying paperwork, hiding borrowed funds through multiple bank transfers, and overpricing imports. The bank said these actions were distorting official trade data and enabling some players to manipulate the Willing-Buyer Willing-Seller (WBWS) foreign exchange market.

In its statement, the RBZ explained:

“The most prevalent violations include failure to acquit export and import documentation within prescribed timelines, non-application of liquidation requirements on export receipts, falsification of documents to facilitate irregular exports and imports, and the establishment of cross-border investments without prior RBZ authorisation.”

The central bank further revealed that some offenders had engaged in “double dipping”, which means obtaining foreign currency from more than one source for the same purpose.

Heavy Penalties And Licence Suspensions

To address the problem, the RBZ said it has revised penalties upwards and will not hesitate to suspend or revoke trading licences for serious breaches.

“To foster a culture of compliance and uphold the foreign exchange rules and regulations that govern trade and investment transactions, the Reserve Bank has revised the penalty fees for non-compliance upwards to one percent of the transaction amount or one hundred thousand United States dollars (US$100 000.00 or ZiG equivalent), whichever is greater,” the statement read.

The RBZ urged authorised dealers, ADLAs (Authorised Dealers with Limited Authority), and corporates to strengthen their internal controls to avoid falling foul of the law.

The WBWS market — where exchange rates are set by supply and demand — was introduced to create transparency in foreign currency trading. However, the RBZ warned that abuse of the system would destabilise the economy and threaten currency stability.

The central bank stressed that protecting the credibility of Zimbabwe’s trade and investment system was vital to maintaining investor confidence.