CABS impose internal transfer limits

CABS

CABS issued a notice announcing that individual customers can now do a maximum of 10 internal transfer transactions per day. CABS say the permitted 10 internal transfer transactions could be of any value.

Dear Valued Customer,

We wish to advise you that the limit for internal transfers on individual accounts is now 10 transfers of any value per day.

We encourage you to ensure that your transactions are limited to the purposes for which you opened your account.

As you can see, this rule only affects individual customers, leaving businesses being able to do as many internal transfer transactions of any value as they want per day.

Did the limit come from the RBZ (Financial Intelligence Unit)

No, this restriction did not come from RBZ’s the Financial Intelligence Unit (FIU). This is just an internal rule by CABS possibly introduced to preempt any rogue customers who might misuse the internal transfer facility to engage in illegal foreign currency dealings on the black market.

Indeed, the facility is being utilized by moneychangers to trade foreign currency that is why the FIU once imposed restrictions on the use of it, only to reverse the decision several weeks later.

Where restrictions are coming from

The RBZ says that the loss of value of the Zimbabwe dollar is attributed to the illegal foreign currency trades happening on the black market.

To stop the black market from flourishing, the RBZ has continuously imposed restrictions on banking platforms and mobile money platforms which are used by moneychangers to conduct their trades.

However, the local currency has kept on losing its value despite the several restrictions imposed. Right now, the black market rate is over ZWL$100 whilst the official rate is ZWL$57.35.

It remains to be seen if muzzling moneychangers will ever stabilize the value of the Zimbabwe dollar in the near future.

Leave a Reply