Cryptocurrency to be included in amended money laundering act

by | Jul 14, 2021 | Business | 0 comments

Nevanji Munyaradzi Chiondegwa

Virtual assets, which are digital representation of value that can be traded digitally or transferred and can be used for payment or investment purposes such as bitcoin, blockchain technology and cryptocurrency will soon be included in the amended Money Laundering Act.

This comes after Cabinet considered and approved the Principles of the Money Laundering and Proceeds of Crime Act [Chapter 9:24] and the Securities and Exchange Act [Chapter 24:25] which were presented by the Minister of Finance and Economic Development, Professor Mthuli Ncube.

“The nation is advised that the Money Laundering and Proceeds of Crime Act will be amended to include proliferation financing, as well as cooperation and coordination among relevant authorities to ensure compatibility of money laundering, counterfeiting Terrorism and Proliferation Financing requirements with Data Protection and Privacy rules,” Minister Monica Mutsvangwa told the press yesterday.

“The definition of securities will be widened to include Virtual Asset Service Providers, through amending the Securities and Exchange Act [Chapter 24:25]. It is highlighted that this will enable the Securities and Exchange Commission to come up with regulations to supervise the Virtual Assets Service Providers on a risk-based approach. Cabinet reports that the Money Laundering and Proceeds of Crime Act will be amended in order to provide for identification and assessment of money laundering and terrorist financing risks that may arise in relation to Virtual assets, acts and the activities,” continued Minister Mutsvangwa

“The Act will be amended to ensure that sanctions are also applicable to Virtual Asset Service Providers, their directors and senior management. Amendments to the Act will also be made to ensure that Virtual Asset Service Providers comply with set preventive measures. Furthermore, amendments will be made to allow supervisors of Virtual Asset Service Providers some legal basis for exchanging information with their foreign counterparts.”
Legislation around emerging forms of money is becoming the norm in the world countries like South Africa also deliberating around regulations to govern use of Bitcoin and other related currencies.