SOME Zimbabweans wielding millions of United States dollars in cash have tried to entice law firms to facilitate lucrative property transactions, bypassing banks, businessdigest heard this week.
According to the Reserve Bank of Zimbabwe (RBZ), approximately US$2,5 billion in cash is circulating outside the banking system where it is prone to being used to facilitate illicit deals.
Law Society of Zimbabwe president Rumbidzai Matambo this week said in carrying out their mandates, lawyers were always guided by the law.
However, a lawyer, who requested anonymity, said some property barons were approaching legal practitioners to circumvent formal procedures when acquiring properties.
“It is sad that the banking sector is struggling when all the money is in people’s pockets,” the lawyer said.
“People walk in with millions of dollars to buy property or anything using cash — I mean US dollars.
“Someone can come and say I want to buy this kind of property, and I want legal guidance in the deal, and you see him with large sums of cash, something like US$4 million.”
The lawyer emphasised the importance of ensuring compliance with exchange control regulations and tax obligations.
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“Some of them do not mind going to Zimra (Zimbabwe Revenue Authority) to declare their money, but some walk in with cash, make a deal and walk away. However, ensuring compliance with local regulations is crucial,” the lawyer said.
“My role would be to navigate these complexities to facilitate smooth transactions, safeguarding my client’s interests and trying to make sure what we do is adhering with the law.
“It is not just ordinary people who are keeping their money out of the banking system.”
“Do you think money is in any way going to be withdrawn from a bank? It is sitting in offices,” the lawyer said.
The flow of illicit funds has attracted global attention, and banks worldwide have been putting in place measures to combat the vice.
Matambo said: “I think economic issues will always impact lawyers because as you know, first of all, we handle trust funds, which are funds belonging to other clients and you find that sometimes you are holding trust funds and there are the currency changes and all that,” she said.
“We encourage our members to have agreements with the clients to make sure that it is clear what happens when there is a currency change or there is a devaluation. For most members, the law has been guiding us”.
