Mosi-oa-Tunya On KYC Principles&Unwise For Banks Loaning To Purchase Gold Coins
Reserve Bank of Zimbabwe (RBZ) Governor Dr John Panonetsa Mangudya has said that banks would not be allowed to lend for purposes of purchasing the Mosi-oa-Tunya gold coins as that would add pressure on the ability of banks to settle their transactions at the Central bank.Mangudya also added that the purchases of the gold coins would be in line with the “know your customer” (KYC) principles so that banks and agencies would know who they are selling to.
“If a commercial bank provides a loan to an individual or company to purchase gold coins, they are endangering themselves because at the end of the day the bank might not necessarily be able to meet their settlement platform at the bank to ensure that they clear their transactions.
“This is because they have other transactions they need to clear with the central bank,” said the Governor during his press conference on the introduction of the first batch of gold coins.
Also KYC standards are designed to protect financial institutions against fraud, corruption, money laundering and terrorist financing.
The KYC process serves to protect the controlling financial institution and protect the common good and the economy.