Zimbabwe has joined African economies in crafting strategies to stamp out externalisation of funds that are costing the country and the region billions of dollars yearly.

Concern is being raised over threats posed by money laundering to Zimbabwe’s financial systems and the development of African economies.

The billion dollar illegal activities are understood to be undermining the integrity of economies and damaging reputation of companies with societies bearing the costs of underdevelopment.

The Director of Financial Sector Management, Mr Patrick Mutimba told the ZBC News on the sidelines of regional money laundering meeting in Harare that Zimbabwe and the African countries are focusing on mechanisms that can be put in place to deal with externalisation of funds.

“What we just need are the right systems to stamp out the challenge and enhance the capacity to deal with the challenge,” he said.

An effective sharing of ideas about anti-money laundering and avoiding financing terrorism is needed as a matter of urgency, noted Mr Calvin Habasonda, a member of the Eastern and Southern African Money Laundering Unit.

“It is a big challenge but we cannot let it just like that. We really need better mechanisms to ensure sustainability of the entire system,” he said.

Some of the key issues being considered by the regional African economies to stamp out capital outflows include harmonisation of regulations, consistent updates, effective monitoring systems and integration of financial operations database, among others.