KBN TV EDITORIAL – IT’S NOT ILLEGAL OR CRIMINAL TO KEEP MONEY AT HOME
Following the Bank of Zambia’s decision to print new notes and mint new coins, there is an emerging wrong narrative to paint anyone hoarding cash as a criminal.
Granted, everyone has a right to hold an opinion but let’s resist the temptation to manufacture lies, twist facts and forget what the law says.
The truth is that it’s not criminal to keep any amount away from the Bank. That’s the hard fact!
There is no law in the constitution or Bank of Zambia Act that stops anyone from keeping money at home.
The only reason one must bank their money is that the bank is a store of value and it guarantees safety. Other than that, keeping huge amounts of money is not illegal.
Many of you will recall the case of Austin Liato who buried K2bn at his farm and the Court ruled in his favour. It was his money and he chose how to keep it!
The High Court overturned a 2 year jail term slapped on Liato by the Magistrate Court and ordered the State to surrender back the cash, farm and other properties seized for the former Minister of Labour.
Today, the Ministry of Community today is administering the so- called Cash For Work, they are drawing and moving with hard cash. If the cash is discovered kept at some office or house of a Government official, does that become illegal? The answer is No!
The issue of money laundering comes in where you need to justify the source of money. That’s the law not that you can’t keep the money.
Clearly, a false political narrative is building and it seems to be targeted at certain individuals. To say the least, that is pedestrian talk which is contrary to what the Central Bank has guided.
The sentiments from the Central Bank is that there will be a specified period when old currency must be exchanged with new notes.
This doesn’t mean you are guilty if you take huge amounts as long as you can justify the source of your money.
If for example someone runs a chain of fuel pump stations and they choose to keep money instead of taking it to the bank, there is nothing criminal about that.
The only right thing to do is that money needs to be in circulation and banks are one of the channels that helps ensure constant circulation of cash in an economy.
There is nothing sinister about bulky cash deposits. Banks have bulky cash deposit tellers, they are part of everyday bank operation.
There’s nothing special about going to deposit bulky cash. Let’s not create a narrative that something new has happened.