Zimbabwe KYB in 2025–2026: What Fintechs Must Do Before the Re-registration Deadline

Zimbabwe is entering a decisive regulatory phase. With the country moving to a modernised corporate registry, and all businesses required to obtain updated certification before April 2026, fintechs and regulated entities must tighten how they verify corporate clients.

Accurate KYB procedures are now essential for meeting expectations from the Reserve Bank of Zimbabwe (RBZ) and the Financial Intelligence Unit (FIU). Digital onboarding solutions such as VOVE ID help compliance teams keep pace with these changes, especially as verification volumes rise.

Regulatory Context: What Changed?

COBE Act and mandatory re-registration (deadline: 20 April 2026)

All entities incorporated under the old Companies Act must re-register under the Companies and Other Business Entities Act (COBE). Those that fail to obtain new certification risk removal from the register, which effectively prevents them from operating, contracting or maintaining financial accounts.

Who enforces business verification?

• RBZ supervises banks, payment providers, mobile money operators and fintechs.
• FIU enforces AML obligations, including verification of corporate customers and reporting of suspicious activity.
• Companies Registry (PACRA) now issues modern, QR-coded certificates that make authenticity checks easier and reduce document fraud.

Penalties and enforcement powers

Non-compliance with KYB or AML rules can trigger administrative penalties. Under Zimbabwe’s scale, Level 14 fines generally fall between USD 5,000 and 20,000 (based on SI 25/2021 and subsequent monetary adjustments).

For serious or repeated AML breaches, FIU may apply multipliers and escalate cases, with penalties reaching up to USD 500,000. The FIU also has authority to freeze accounts, issue directives or suspend operations where systemic failures are identified.

Core KYB Requirements in Zimbabwe

1. Updated company documentation

Institutions must verify that a business holds the new PACRA-issued certificate where applicable. The QR code allows for instant digital validation and helps prevent onboarding companies that will be struck off during the transition.

2. Identity and authority of key persons

Regulated entities must confirm who manages the business and who acts on its behalf. This includes ID verification, role confirmation and checks for conflicts or elevated risks.

3. Ownership and control structure

Understanding the full chain of control remains essential for AML compliance. Institutions must be able to identify who ultimately influences the entity, even when the ownership structure spans several layers or jurisdictions.

4. Business activity and risk evaluation

The onboarding institution must assess whether the company’s stated purpose aligns with expected business behaviour and whether any indicators place it in a higher-risk category.

5. Company address and governance requirements

A verifiable operating address and reliable contact details are mandatory. Residency rules also apply differently depending on the entity type:

• Since 2023, PBCs may be formed entirely by non-residents without requiring a Zimbabwe-based director or member.
• PLCs, however, must still appoint at least one resident director, as required by COBE section 195.

Practical KYB Considerations for 2025–2026

Re-registration status and document validity

Because many older businesses are still in transition, regulated entities must verify whether a client already holds an updated certificate. Onboarding a company that could be removed from the registry creates operational and compliance risk.

Authenticity checks

PACRA’s QR-coded documents enable automated validation. Institutions should prioritise these updated formats and request them during onboarding or periodic review.

Changes in ownership or management

Re-registration often triggers updates to shareholding or governance. Institutions should maintain a mechanism to re-check information when material changes occur.

Alignment with AML expectations

The FIU now expects documented justification for each risk classification, even when the entity appears low risk. Proper record keeping is important, since auditability is a key component of supervisory reviews.

Why Automated KYB Matters Now

Zimbabwe’s regulatory overhaul increases the operational burden on compliance teams. Manual processes struggle to keep up with document checks, risk scoring, and monitoring obligations. Automated KYB platforms can help:

• validate QR-coded certificates
• review identities of officers and decision-makers
• detect gaps or inconsistencies in corporate information
• track updates with minimal manual work
• provide complete audit trails for FIU inspections

For fintechs and digital-first institutions, automation reduces onboarding time and lowers the chance of errors that could attract penalties.

2025 KYB Checklist for Zimbabwe

Before onboarding a corporate client, regulated entities should ensure they have:

1. A valid, updated certificate from the Companies Registry
2. Founding and constitutional documents
3. Verified identities of key persons
4. A clear view of the control structure
5. Reliable company address and contact details
6. Completed AML screening for the entity and relevant individuals
7. A documented risk assessment with supporting evidence

Conclusion

Zimbabwe’s shift to a modern corporate registry and stronger AML supervision means KYB will remain a top priority throughout 2025 and 2026. Institutions that maintain outdated or manual verification frameworks risk penalties, onboarding delays and operational disruption.

For organisations that want to streamline corporate onboarding while staying compliant with RBZ and FIU expectations, VOVE ID offers an automated approach that supports QR-coded document validation, identity checks and risk-based workflows built for African markets.