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OpenRBZ Targets Businesses "Abusing" Cash Deposit Boxes
The Reserve Bank of Zimbabwe (RBZ) has raised concerns about a growing trend in which millions of dollars are sitting idle in cash deposit boxes across the country, warning that this practice is depriving the economy of vital liquidity.
In his 2025 Monetary Policy Statement released last Thursday, RBZ Governor John Mushayavanhu the keeping of cash in cash deposit boxes is hindering economic growth by restricting the flow of much-needed capital within the economy.
He said the Financial Intelligence Unit of the Reserve Bank will not tolerate this malpractice and will take decisive action to address the situation. Said Mushayavanhu:
The Reserve Bank has noted with concern the increasing abuse of safe deposit boxes and the proliferation of “shadow banks”.
It has been observed that some businesses are not banking all or most of their cash receipts and are, instead, keeping such cash in safe deposit boxes held with financial institutions and security companies.
This trend is not only a violation of the Bank Use Promotion and Suppression of Money Laundering Act [Chapter 24:24] which requires businesses to bank all their cash receipts, but it also promotes tax evasion and money laundering.
The Reserve Bank is working with the Financial Intelligence Unit and other Law Enforcement Agencies to curtail such practices and encourage the use of normal banking channels, in line with the Bank Use Promotion and Suppression of Money Laundering Act [Chapter 24:24].
Many Zimbabweans, both individuals and businesses, prefer to keep their money in safe deposit boxes rather than in banks for several reasons, including a lack of trust in financial institutions, frequent regulatory changes, and the growing prevalence of a cash-based economy.
The country’s economic instability and past experiences have led some to question the banking system’s ability to protect their funds, resulting in a lack of confidence in traditional banking channels.
Zimbabwe’s largely multicurrency system, with cash being the primary method of transaction, has made it easier for people to store cash in safe boxes, as it aligns with the daily needs of individuals and businesses.
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