HomeBusinessRBZ gives advice on money transfer regulations

RBZ gives advice on money transfer regulations


THE Reserve Bank of Zimbabwe (RBZ) has advised customers of Authorised Dealers with Limited Authority (ADLA) institutions that they can cancel transactions which have not been processed within 30 minutes of payment.


This advice was included as a special notice in the new exchange control guidelines for ADLAs which signalled a release of stringent money transfer regulations which prohibited money transfer agencies (MTAs) from remitting money outside the country.

An ADLA is a financial services provider not necessarily licensed under the Banking Act (Chapter24:20) but authorised by the central bank in terms of the Exchange Control Act to buy and sell foreign currency and carry out small value person-to-person cross-border remittances through money transfer systems.

Transfers include cash-cash money transfers, international wire transfers, international mobile transfers, international automated clearing house transactions, and mobile companion prepaid card transfers.

In a release of the new exchange control guidelines for ADLAs, RBZ said the ADLA must issue the sender with documentation or receipt detailing the pricing, exchange rate and expected delivery time at the bottom of the receipt.

“You have the right to dispute errors in your transaction. You can register cancellation for a full refund within thirty (30) minutes of payment if the money has not been paid out or deposited. If you think there is an error, contact us within ninety (90) days,” the notice read.

“If there is error of account information or sender cancels the transaction within 30 minutes, but before delivery, the ADLA shall refund the sender but without reimbursing the fees and/or the cost of funds that cannot be recovered.”

The exchange control regulator, however, advised financial institutions to address complaints about them through its exchange control division.

ADLA service providers were grouped in three tiers with the first comprising locally-incorporated money transfer operators (MTOs) partnering with approved international MTOs or using own systems to carry out both inward and outward international remittances.

The second has locally-incorporated MTOs operating as MTAs by either partnering with approved international MTOs or using own systems to carry out inward international remittances only.

Tier three has bureau de changes, which are locally-incorporated financial service providers authorised to only buy and sell foreign currency on a spot basis.

However, both the first and second tier are allowed to buy and sell foreign currency on a spot basis.

“An ADLA in tier one or tier two may receive or send money on behalf of natural persons for one of the following transactions, gifts, medical fees, school fees, pension funds, alimony and maintenance, donations, emergencies and any other non-business or non-corporate small value transactions,” the RBZ said.

It said an ADLA cannot purchase or sell more than $5 000 per customer per day.

“ADLA may charge money transfer fees to the sender and no fees shall be charged to the beneficiary in the initial transaction.”

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