POLICE and officials of the Reserve Bank of Zimbabwe (RBZ) have cracked a major foreign currency smuggling ring based in the UK which was offering Zimbabweans in the Diaspora higher exchange rates on the local black market, The Standard has established.

Sources close to the investigations told The Standard that a number of Zimbabweans, including senior members of a registered money transfer agency - Montreax Money Transfer - have been arrested.

The joint swoop has also netted officials of unregistered money transfer agencies, which the police say have been fuelling the recent fall of the Zimbabwean dollar against major currencies on the parallel market.

On Montreax - a money transfer agency registered with the RBZ - official sources said the company was caught exchanging foreign currency employing exchange rates that are above the stipulated auction or "Diaspora" rates.

"The company was compiling two reports, one for the use in their accounts and another one for presentation to Reserve Bank staff if the staff wanted to make a check," said the source.

Police spokesperson assistant commissioner, Wayne Bvudzijena, confirmed that so far 13 illegal foreign currency dealers had been arrested and more could be picked up soon."Yes, we arrested 13 dealers and this include directors of companies and other individual dealers," said Bvudzijena.

One of those being investigated, according to police sources, is David Kamunhu, the managing director of Davecorn Motors. Also arrested was Ivennie Matika, who was operating in Zimbabwe as Unilink Money Transfer while his brother sourced money in the UK under the trade name Worldlink.