Businesses will face a fine of Z $ 50,000 for not accepting the ZWL $ equivalent of US $ goods and services



The government published statutory instrument 127 of 2021 (SI 127 of 2021), which details the civil penalties for those who violate the foreign exchange law (22:05) and the Law on the Promotion of Banks and (24:24).

The penalties are as follows:

Pricing of goods and services only in forex

In accordance with the prevailing multi-currency environment, any business according to SI 127 of 2021 that refuses to take local currency at the official exchange rate for goods or services valued in USD may be fined up to ZWL 50,000. Businesses cannot price or invoice goods and services exclusively in USD.

Use of auction funds

“A person will be guilty, if he or she, without an exchange control authority, uses foreign currency obtained directly or indirectly from a currency auction or from an authorized dealer for any purpose other than that specified in the request. to participate in the auction or demand for foreign currency. “

SI 127 from 2021

If you participate in the forex auction, you will now be fined for not using that money for the intended purpose. According to a report from newZWire, the fine is set at ZWL $ 1 million or the equivalent of the value of the foreign currency drawn from the auction. In this case, the higher amount is the one you will have to pay.

Price of goods above auction rate

Anyone who places a premium on goods and services in local currency to induce a buyer to buy in foreign currency now faces a fine of ZWL $ 50,000. In short, there should be no discounts for customers paying in foreign currency.

Issuing a local currency receipt for a foreign currency purchase

If your customer pays something in USD and you give them a receipt in local currency (ZWL $) or note that the sale was in ZWL $ then you will face a fine of 50,000 ZWL $ or the equivalent amount in forex.

Banks will be penalized for their customers

Banks are now responsible for the information submitted by their customers in the event of a foreign exchange request. If a customer submits false information and the bank does not do their due diligence, the financial institution will have to pay a fine of ZWL $ 5 million.

Appeal process

If you are found guilty of any of the new regulations under SI 127 of 2021, you will have 48 hours to submit your appeal. The bid will have to show proof that the fine was in error, and if the situation is not reversed, you must pay the stipulated amount. If you do not pay the fine on time, you will be charged an additional 5% per day over a period of 90 days.

If the 90 days go by without the fine being paid, you will be subject to a sentence of six months to one year in prison.

You should also read:

Fast airtime recharge NetOne, Econet and Telecel


Leave A Reply

Your email address will not be published.