Staff Writer 
By Sithuthukile Sibanda and Patience Chinomona
As the banking sector commemorates Global Compliance and Ethics Week 2026 from 1 to 7 November, it is an opportune moment to reflect on a year that saw significant regulatory developments, heightened supervisory scrutiny and emerging risks reshaping the compliance landscape. There is a growing recognition that compliance is not merely a regulatory obligation but a strategic enabler that protects customers, strengthens resilience and supports sustainable growth.
Throughout 2026, banks navigated an increasingly complex operating environment. The sector saw increased focus on AML/CFT effectiveness ahead of future mutual evaluation processes, implementation of exchange control guidelines, growing oversight of data protection obligations, increasing expectations around climate risk management and sustainability reporting, and greater attention to the governance implications of technology and digitisation.
Below is a reflection on some of these developments and their implications for the financial sector going forward.
Money Laundering, Terrorist Financing and Proliferation Financing
Financial crime remained one of the most significant priorities for banks during 2026. Regulatory attention focused increasingly on demonstrating effectiveness rather than simply maintaining policies and procedures. Enforcement actions across the sector highlighted the importance of customer due diligence, beneficial ownership verification, sanctions screening and transaction monitoring. Key actions include strengthening KYC processes, enhancing transaction monitoring, maintaining robust sanctions controls, improving suspicious transaction reporting and ensuring readiness for future regulatory assessments.
Data Protection and Privacy
Data protection moved further into the regulatory spotlight during the year. Increased regulatory frameworks and planned inspections reinforced the need for strong governance of personal data. Banks should strengthen data privacy controls, observe on data subject rights and effectively respond to data breaches and cyber incidents compromising personal data. Continuous staff awareness is key along with industry participation and regulatory engagement as this is a continuously evolving space.
Sustainability
Sustainability continues its transition from a corporate responsibility issue to a core risk and compliance consideration.
The year was characterised by growing regulatory engagement between banks and regulators on climate and sustainability matters. Through industry engagements, supervisory interactions and ongoing implementation of the sustainability regulations, banks were encouraged to strengthen climate governance frameworks, incorporate climate risks into enterprise risk management processes and enhance board and management oversight of sustainability-related risks and opportunities. Compliance teams should support sustainability literacy initiatives, ESG reporting capabilities, transparent disclosures and controls to prevent greenwashing.
Customer Protection and Fair Outcomes
Customer protection remained a central regulatory focus area throughout 2026 as regulators continued to emphasise financial inclusion, responsible banking and fair customer outcomes. Authorities reinforced the importance of consumer confidence within the financial system, while supervisory engagement increasingly focused on transparency, fair treatment and customer experience.
Regulators continued to emphasise fairness around pricing, charges and customer communication, requiring banks to ensure that fees, terms and conditions are clearly disclosed and understood by customers. These developments reflect a broader shift towards outcomes-based supervision, where regulators are increasingly interested not only in whether banks comply with rules, but whether customers ultimately experience fair, transparent and appropriate outcomes. Banks and compliance teams must ensure that customer protection considerations are embedded throughout the product lifecycle.
Exchange Control and Regulatory Reporting
Exchange control compliance remained a significant area of regulatory focus during 2026 as authorities continued efforts to strengthen market confidence, improve foreign currency governance and support financial stability. Key exchange control guidelines reinforced regulatory expectations regarding foreign currency transactions, supporting documentation requirements, customer due diligence standards for foreign currency flows, acquittals and the submission of returns.
Additional regulatory and industry engagements were held, aimed at clarifying compliance expectations and addressing emerging market practices. Through these engagements, regulators consistently emphasised the importance of robust controls over cross-border payments, foreign currency utilization and the accuracy of regulatory reporting. Significant penalties have been attached for none compliance. Therefore, financial institutions must continue investing in staff training on exchange control requirements, strengthen quality assurance over regulatory submissions, enhance oversight of cross-border payment activity and ensure robust governance over foreign currency transactions and reporting obligations.
Compliance as a Competitive Advantage
As the Global Compliance and Ethics Week draws to a close, the lessons from the year are clear. In an environment defined by increasing regulatory scrutiny, rapid technological change and evolving stakeholder expectations, compliance can no longer be viewed as a back-office function or regulatory obligation. It is a critical driver of trust, resilience and sustainable growth.
The institutions best positioned for success will be those that embed compliance into their culture, strategy and decision-making. Whether responding to financial crime risks, strengthening customer protection, enhancing regulatory reporting, safeguarding data or managing emerging sustainability and technology risks, the common thread remains the same: strong compliance creates stronger banks.
Ultimately, trust is the banking sector’s most valuable asset. By continuing to uphold the highest standards of integrity, accountability and ethical conduct, Zimbabwe’s banking industry can strengthen confidence in the financial system and contribute meaningfully to the country’s economic development.
Sithuthukile Sibanda and Patience Chinomona are the Chair and Deputy Chair of the Bankers Association of Zimbabwe Compliance Committee.
