RESERVE Bank of Zimbabwe (RBZ) governor Gideon Gono has refunded banks convicted and fined for violating exchange control regulations over $6 billion, it has been established.
Official sources said Gono recently repaid the banks that breached the exchange control regulations in a bid to “rebuild the collapsing trust between the central bank and all stakeholders”.
Sources said Gono reimbursed the banks following a “conditional amnesty” extended last December to the affected institutions. The banks include Time, NMB, Trust, Zimbank, Metropolitan, Century, CFX, MBCA, Renaissance, Genesis, ABC, Interfin, Barclays, Stanbic, First Bank, Royal, Kingdom, Agribank and Jewel Bank.
Time Bank was initially convicted for violating the exchange rate order and the RBZ’s 40% surrender require-ment. It was fined $202 million and ordered to suspend foreign currency trading for three months. The bank was also directed to sell and remit US$39 561 due to the RBZ.
NMB was convicted on similar charges. The bank was fined $1,9 billion and suspended for 12 months. It was also ordered to sell and remit US$10,6 million due to the RBZ.
Trust Bank was similarly fined $875 million and ordered to dispose of US$14 801. It was suspended from dealing in foreign currency for a year.
Zimbank was convicted of violating the exchange rate order only and fined $1,1 billion. It was ordered to cease foreign currency trading for six months.
For violating the 40% surrender requirement, Metropolitan was fined $388 million and directed to stop foreign currency deals for six months. The bank was asked to sell US$450 976 due to the RBZ.
Century Bank was charged for breaching the exchange rate order and the 40% remission regulation. It was fined $299 million and suspended for three months. CFX was convicted for both offences and fined $156 million. It was also suspended for three months.
MBCA was fined $52 million and suspended for three months over exchange rate violations. It was only charged for the contravention of the exchange rate order. Renaissance was fined $43 million and suspended for three months, while Genesis was fined $1 million and suspended for a similar period.
ABC was slapped with a $414 million fine and suspended for six months. It was ordered to sell US$167 150 due to RBZ. Interfin was fined $66 million and asked not to trade for three months. Barclays was fined $32 million and also suspended for three months.
For violating the exchange rate regulations, First Bank was fined $104 million and suspended for three months. Kingdom was fined $593 million and suspended for nine months.
It was ordered to sell US$851 000 due to RBZ. Agribank was fined $351 million and suspended for three months. CBZ was fined $57 million.
Stanbic and Royal Bank were acquitted.