The Role of Financial Intelligence Units in Zimbabwe: A Study on Combating Money Laundering Using the Financial Action Task Force Recommendations Implementation Model

Abstract

This quantitative study examines the role of Financial Intelligence Units (FIUs) in Zimbabwe in combating money laundering, using the Financial Action Task Force (FATF) Recommendations Implementation Model. A survey of 40 stakeholders involved in anti-money laundering efforts yielded 38 responses, analysed through regression analysis to identify key factors influencing FIU effectiveness. The findings reveal significant challenges, including regulatory deficiencies such as gaps in legal frameworks and inconsistent enforcement economic instability and inadequate resources, which limit operational capacity. For instance, outdated legislation hinders effective monitoring and reporting of suspicious transactions. The study concludes that strengthening the regulatory framework, enhancing resources and improving international cooperation are critical to FIU effectiveness. A comprehensive model, the Zimbabwe Financial Intelligence Unit Enhancement Model (ZFIUEM), was developed, integrating regulatory enhancements, resource optimisation and international cooperation. The implications for policy-makers and financial institutions are profound: policy-makers should prioritise robust regulatory frameworks to keep pace with evolving money laundering techniques, while financial institutions are encouraged to invest in training and resources to enhance compliance capabilities. Strengthening collaboration between FIUs and international bodies will facilitate information sharing and improve responsiveness to global money laundering threats, ultimately fostering a more resilient financial system in Zimbabwe.