Zimbabwe Gold Coin Buyers Will Need To Prove Source Of Funds – Central Bank

The central bank of Zimbabwe recently announced the introduction of the gold coins as a store of value amid soaring inflation and depreciation of the local Zimbabwean dollar against major currencies.

Mosi-oa-Tunya is the local name of the Victoria Falls, 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 on Monday issued guidelines for the purchase 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.

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.

To promote a culture of saving, the coins can only be resold after 180 days, and all buybacks will be done on provision of the original bearer certificate for the specific coin, the bank said.

On selling, customers may decide whether they want to be paid in local or foreign currency. Among the features of the 22-carat coin is a serial number.

Residents and non-residents will be allowed to export the coins supported by the bearer certificate of each coin, the bank added.

“Agents shall sell the Mosi-oa-Tunya gold coins in both local currency and United States dollars and other tradable/denominated foreign currencies at the willing-buyer willing-seller exchange rate,” it said.

“Denominated currencies for the purpose of buying gold coins will include the British Pound, the Euro, Australian Dollar, Botswana Pula and Rand,” said the bank.