Gold coin buyers will need to prove source of funds- RBZ

The Reserve Bank of Zimbabwe RBZ says buyers of the of the gold coins (Mosi-Oa-Tunya coins) which were introduced as a store of value amid soaring inflation must prove their source of funds.

The bank on Monday issued guidelines for the buying and selling of the Mosi-oa-Tunya gold coins, which will be released on July 25, saying that the agents will include authorized dealers (banks) its subsidiaries and foreign banks to sell the coins.

Mosi-oa-Tunya is the local name of the Victoria Falls, one of the country’s wonders which is located on the border of Zimbabwe and Zambia to the north.

“All sales of the gold coins by the agents will be subject to Know Your Customer principles in line with international best practice, which include declaration of the source of funds,” a statement from the bank said.

The bank said once payment had been received by the agent through normal banking channels, a buyer was allowed to take physical possession and ownership of the coin or opt to keep it through a registered bank (custodial services) on terms and conditions of the service provider.

Apparently, the local currency the Zimdollar is losing its purchasing power on a daily basis, making keeping it unsafe, hence the introduction of the coins.

Zwnews