The Effectiveness of asset forfeiture in combating financial crimes

Author

Zvavamhari, Lawrencia

Title

The Effectiveness of asset forfeiture in combating financial crimes

Abstract

The incidence of financial crimes has been on the rise globally, and Zimbabwe is no exception to this trend. In response, various legal and policy interventions have been implemented to suppress such offences, among them the mechanism of asset forfeiture. Nonetheless, the efficacy of these measures, particularly asset forfeiture, has not met the desired expectations. Despite a number of initiatives aimed at addressing financial crime, this research specifically examined the utility and suitability of asset forfeiture within the Zimbabwean legal and socio-economic context. The study aimed to identify the predominant forms of financial crime prevalent in Zimbabwe, to evaluate the effectiveness of asset forfeiture as a tool for combating such crimes, and to assess the challenges associated with the implementation of asset forfeiture regimes. The research reveals that corruption is the most prevalent financial crime in Zimbabwe, with a 93% prevalence rate which is mainly driven by fraud with an 87% prevalence, tax evasion with 78% prevalence and smuggling which is involved in nearly two-thirds of the financial crime incidents reported or perceived across various sectors.

A combination of stratified random sampling and convenience sampling methodologies was employed. Forty-eight officers in various institutions charged with asset forfeiture efforts in Zimbabwe were sampled and completed an online survey while twenty-two officers from the same institutions were interviewed. The research found that asset forfeiture is perceived to be 69% effective in combating financial crimes in Zimbabwe. This is driven by competence and experience of personnel involved in asset forfeiture which rated at 100%, high level of knowledge and understanding of asset forfeiture, which was rated 86%, well structured institutions which was rated 84% and capacity building which scored 86%. This suggests a moderate to high level of confidence in asset forfeiture as a legal and enforcement tool in the fight against economic and financial crimes. The adoption of asset forfeiture is not without challenges. Principal research findings showed that the biggest hurdle is political interference (98%), closely followed by corruption (94%), lack of resources (90%), and fear of victimization (70%) as the key factors militating against the optimal effectiveness of asset forfeiture measures. Furthermore, the extant legal framework was found to be misaligned with the practical exigencies of effective asset forfeiture, rendering it unfit for purpose.

To enhance the functionality and impact of asset forfeiture mechanisms in the fight against financial crime, it is imperative to increase fiscal allocations to relevant enforcement bodies, invest substantially in capacity-building initiatives, reform and harmonize the legal framework governing asset forfeiture, and foster political will and institutional integrity by ensuring an appropriate “tone from the top” that minimizes undue political influence. Without allocating adequate resources, decisively dealing with corruption, political interference, and fear of victimization as well as revamping the legal framework, effectiveness of asset forfeiture will thus remain evasive .

Date

June 2025

Publisher

BUSE

Keywords

Asset

Financial Crimes

Supervisor

Ms Gopo