Statutory Instrument 122A of 2017

Exchange Control (Amendment) Regulations, 2017 (No. 5)

Gazetted and into force Thursday  28th September 2017

These regulations were  explained by Hon Patrick Chinamasa, Minister of Finance and Economic Development, in paragraph 10 of his Ministerial Statement on Cash Shortages and Bank Charges  delivered in the National Assembly on 28th September. 

10.  Mr. Speaker Sir, in order to deal with the scourge of people buying and selling cash on the streets, Government has today gazetted Exchange Control (Amendment) Regulations enacted by His Excellency the President, in terms of Section 2 of the Exchange Control Act. 

These Regulations will empower the police to arrest anyone trading in currency without a licence; as such  it is an offence.  Further, it will allow the police to seize the cash found on a possessor of currency suspected of dealing in currency. 

This seized currency will be deposited at the Central Bank pending prosecution so that the cash will be held as an exhibit.  The regulations also provide for freezing of funds of a corresponding value in a financial institution where such proceeds are the subject of a suspected case of dealing in currency.

The penalties for the offence of trading in currency are contained in the Exchange Control Act and empower the Court to impose a fine not exceeding the value of the currency and a sentence of imprisonment not exceeding 10 years.  In addition to the penalty the Court can impose a fine of three times the value of the currency.

The complete Ministerial Statement can be accessed here.