A Harare company has pleaded guilty to making unauthorised foreign payments through the informal Hawala system without approval from the Reserve Bank of Zimbab...
A Harare company has pleaded guilty to making unauthorised foreign payments through the informal Hawala system without approval from the Reserve Bank of Zimbabwe.
Unicorn Trading Private Limited, represented by its finance manager Ryan Eric Maidwell, is facing charges of contravening the Exchange Control Act.
The State alleges that the company made foreign payments totalling R1 687 000 and E519 911 between January and August this year.
The payments were allegedly made to facilitate imports from South Africa and Eswatini without the required authorisation from the Reserve Bank of Zimbabwe.
The matter came to the attention of detectives on September 1 after the CID Asset Forfeiture Unit, Northern Region, received information that the company was allegedly making unauthorised foreign payments.
Police subsequently visited the company’s premises along George Avenue in Harare as part of their investigations.
Investigators requested import documentation and proof showing that the company had obtained approval from the Reserve Bank for the foreign payments.
The State told the court that the company failed to produce evidence of bank transfers relating to the transactions.
Further investigations allegedly established that the payments had instead been made through the informal Hawala system.
Hawala is an informal system for transferring money through a network of intermediaries, generally outside conventional banking channels. Its use can raise regulatory concerns where foreign-exchange transactions require formal approval under applicable exchange-control laws.
According to the State, the payments involved funds used to facilitate imports from South Africa and Eswatini.
The prosecution further told the court that no money had been recovered during the investigations.
Maidwell, who represented Unicorn Trading in court, pleaded guilty to the charge on behalf of the company.
The guilty plea means the matter will now proceed to sentencing, with the court expected to consider the circumstances surrounding the offence and the applicable provisions of the law.
Maidwell is expected to return to court on Friday for sentencing.
The case comes amid Zimbabwe’s regulatory framework governing foreign-exchange transactions and cross-border payments, under which certain transactions require approval or must be conducted through authorised channels.
Authorities have increasingly relied on investigations by specialised units to identify suspected financial offences involving foreign currency, asset concealment and unauthorised financial transactions.
The outcome of the case and any sentence imposed by the court will determine the legal consequences for Unicorn Trading in relation to the alleged transactions.
Until sentencing, the allegations concerning the specific transactions remain matters before the court, although the company has already entered a guilty plea.
