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Customers at a Western Union outlet in this file photo

Oliver Kazunga Senior Business Reporter
MONEY transfer agency, Western Union has resumed online transfer of money from Zimbabwe to any country around the world. In 2006, the Reserve Bank of Zimbabwe suspended cash transfers by 16 foreign exchange transfer agents due to foreign currency trading irregularities such as money laundering. According to an advertisement that Western Union is running, Zimbabweans can now send money to their loved ones abroad in minutes.

“With Western Union, you can now send money to your loved ones abroad, be it for school fees, rent or a special occasion. Send money in minutes… to over 200 countries and territories,” it said.

An official from one of the Western Union’s offices in Bulawayo told Business Chronicle that they were accepting a daily maximum limit of $1,000 which can be sent in tranches.

“We resumed the service of transferring money from Zimbabwe to different countries on Monday. Individuals can send up to $1,000 a day but in batches of say $500,” said the official preferring not to be named citing professional reasons.

In April, the RBZ announced that it was moving in to tackle the externalisation of funds by licensing approved foreign exchange agents to transfer limited amounts of cash by individuals out of the country.

Presently, through free-funds accounts, individuals can transfer cash up to a maximum of $5,000 outside Zimbabwe.

In the 2015 monetary policy statement, RBZ governor John Mangudya said the central bank was seriously concerned about the abuse of individual or personal accounts to externalise business earnings.

Externalisation of the funds, he said was being done under the pretext of “free funds” for family upkeep, medical bills among others to circumvent or avoid taxes.

The central bank boss said the practice was promoting illicit financial flows and was therefore counterproductive.

He urged the banking public to adhere to good principles in conducting transactions in their free funds accounts hinting that banks should continuously conduct customer due diligence.