The Effectiveness of anti-money laundering policies and regulations in Zimbabwe for the period 2019-2022

Abstract

This research examines the effectiveness of anti-money laundering policies and regulations in Zimbabwe between 2019 and 2022, a period when the country was placed on the Financial Action Task Force grey list due to strategic deficiencies in its antimoney laundering framework. The aim was to assess how effective does the existing legislative and institutional measures are in preventing and detect money laundering and to identify challenges that hinder implementation. A mixed-method case study design was used, grounded in a pragmatic research philosophy. Data were collected through questionnaires, semi-structured interviews and document analysis from institutions, microfinances, Financial Intelligence Unit, ZACC, ZRP and the banking sector including Designated Non-Financial Businesses and Professions. . Purposive sampling was used to target compliance officers and regulators. Quantitative data get analysed using trend analysis and presented through graphs and tables, while qualitative data underwent thematic and content analysis. Triangulation across three data sources was applied to enhance validity and reliability. Findings indicate moderate perceptions of anti-money laundering effectiveness. Customer due diligence measures showed stronger compliance than Suspicious Transaction Reporting obligations. Document analysis confirmed legislative progress with Zimbabwe addressing 38 of the 40 FATF compliance recommendations by 2022 and improving Eastern and Southern Africa Anti-Money Laundering Group ratings. However, triangulation revealed a gap between technical compliance and practical effectiveness. Key challenges included weak interagency coordination, limited institutional capacity, inadequate resources and technology, inconsistent enforcement of sanctions asset forfeiture. Interview respondents highlighted operational difficulties within Financial Intelligence Unit, such as shortages of skilled personnel and limited systems for analysing suspicious transaction reporting. While Zimbabwe made notable legislative improvements, low effectiveness in prosecution and confiscation undermines the deterrent impact of the AML regime. Recommendations focus on strengthening institutional cooperation, improve resource allocation and technology, enhancing enforcement to bridge the gap between compliance paper and real impact.