[2008-04-23]  Depositors resort to multiple bank accounts
DEPOSITORS have resorted to opening multiple bank accounts to access more money above the set maximum cash withdrawal limit of $1 billion.

Early in the month, the Reserve Bank of Zimbabwe increased the maximum cash withdrawal limit to $1 billion from $500 million with the argument that the low withdrawal limits would curb illegal dealings in the economy while at the same time helping the liquidity position to avoid a run on the banks.

However, this amount ($1 billion) is too little given the recent wave of price increases where lunch in decent eating places ranges between $300 million-$1 billion and the pending school fees payment.

"I have had to open different accounts in company names to get more money from the bank as the limit is too little given the inflationary pressures," said one account holder. However, multiple cardholders have caused long delays at ATM queues.

Banks have said there is nothing they can do as most of the accounts would not be in the name of an individual but could be in company names or family names.

Barclays head of corporate affairs Mrs Valeta Mthimkhulu said bank policy allows customers to hold a number of accounts under different product types depending on the purpose for which the accounts will be used, for example, current account for day-to-day transactions and savings accounts for savings products.

If any account holder is found to be with two accounts of the same product, he or she will be given an option to close one account, said an official at CBZ.

CFX managing director Mr Onesimo Mukumba said opening multiple accounts was legal be it in company or family names as long as they don’t commit fraud with the accounts.

Banks have Anti-Money Laundering and Suspicious Transaction Monitoring systems which monitor the use of the accounts to detect any instances of abuse.

However, since last year, the RTGS system has been used for illegal foreign currency deals, which has been better paying than street rates.
Source: (C)copyright 2008 The Herald ltd.