Source: Govt adopts risk-based classification for PVOs – herald
Minister Edgar MoyoZvamaida Murwira
Senior Reporter
THE Government will classify private voluntary organisations (PVOs) using a risk-based approach where each entity will be categorised based on factors such as level of exposure to foreign funding from high-risk jurisdictions, conflict areas and cross-border cash movements.
The classification of PVOs is part of the country’s compliance with the Financial Action Task Force (FATF), a global standard setter for anti-money laundering and combating the financing of terrorism.
FATF requires countries to criminalise terrorist financing, actively identify and assess terrorist threats, and apply strict financial controls across all relevant economic sectors to disrupt terrorist networks.
The decision to categorise PVOs was announced by Public Service, Labour and Social Welfare Minister Edgar Moyo in a Statutory Instrument published in the Government Gazette last week.
Categorisation of PVOs is also part of broader compliance with the PVO Act, which was signed into law in April 2025.
The law seeks to ensure the country complies with the recommendations of FATF to prevent the abuse of charities for the financing of criminal and terrorist activities. It will also streamline the administration, accountability and transparency of charity organisations.
The Private Voluntary Organisations (Risk-Based Supervision and Protection from Terrorist Financing Abuse) Regulations 2026 seek to implement a risk-based approach to the supervision of PVOs, in accordance with FATF.
PVOs will be classified as high risk, medium risk or low risk depending on their exposure to foreign funding and will be based on sectoral risk assessment.
“The purpose of these regulations is to implement a risk-based approach to the supervision of PVOs in accordance with FATF Recommendation 8, ensure that measures to prevent terrorist financing are proportionate to the risks identified and to protect the private voluntary sector from terrorist financing abuse without disrupting or discouraging legitimate charitable activities,” read the regulations.
The regulations provide for close cooperation between the Ministry of Public Service, Labour and Social Welfare and the Reserve Bank of Zimbabwe’s Financial Intelligence Unit (FIU).
“In carrying out the risk assessment referred to in section 22(3) of the Act, the Minister, in cooperation with the FIU and relevant stakeholders, shall conduct a periodic sectoral risk assessment of the PVO sector to identify the subset of organisations that fall within the FATF definition of a non-profit organisation and are likely to be at risk of terrorist financing abuse,” read the regulations.
Also, it stipulates that the assessment shall identify the nature of threats posed by terrorist entities to PVOs and their vulnerability.
“The Minister shall review the sectoral risk assessment at least once every five years or whenever there are significant changes in the risk landscape,” read the regulations. Categorising non-governmental organisations (NGOs) as high risk means they have significant exposure to foreign funding from high-risk jurisdictions or those operating in conflict zones.
The medium risk category is for organisations that have moderate exposure to domestic or foreign funding and standard operational risks, while low risk refers to community-based organisations with purely domestic funding and operations and limited financial turnover.
One of the objectives of the PVO Act is to ensure that civic organisations stick to their core business and not stray into partisan political activism.
The Government introduced the law after realising the proliferation of PVOs, some of which were deviating from their core mandates.
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