The fight against money laundering and terrorist financing in Zambia and around the world is important to protect our citizens and to ensure the integrity of financial institutions and national Security. Strong and effective Anti-Money Laundering and Financing of Terrorism (AML/CFT) framework promote financial integrity by making it difficult to conceal illegal activities.
On 2nd February 2023, the National Anti-Money Laundering (AML) and Countering Terrorism Financing and Proliferation Financing (CTPF) Policy was launched. The Policy outlines a statement by the Zambian Government that sets a clear direction for the effective combating of money laundering, terrorism financing and proliferation financing. The National Policy can be downloaded below.
The Zambian Government endeavors to develop and implement AML/CFT systems that comply with the required international standards. Below is the outline of the Zambian AML/CFT framework
AML/CFT INSTITUTIONAL FRAMEWORK
- Anti-Money Laundering Authority ( AMLA)
This is the AML/CFT Policy making body established under Section 3 of the Prohibition and Prevention of Money Laundering Act, No 14 of 2001, amended Act, No. 44 of 2010.
The AMLA is chaired by the Attorney General, and other members include; the Governor-Bank of Zambia, the Commissioner General of the Zambia Revenue Authority (ZRA), the Inspector General of Police, the Commissioner-Drug Enforcement Commission (DEC), the Director General-Anti Corruption Commission (ACC). The mandate of AMLA is to provide general or specific policy directives and to advise Government on measures required to prevent and detect money laundering in the Republic of Zambia. - Task Force of Senior Officials on AML/CFT matters
The Zambia Government is cognizant about the importance of coordination among key stakeholders for the effective functioning of the AML/CFT framework. For this reason, Cabinet Office set up the National Task Force of Senior Officials on AML/CFT. The overall mandate of the National Task Force of Senior Officials is to coordinate AML/CFT matters among key stakeholders with a view to improving the effectiveness of existing policies to combat money laundering, financing of terrorism and other serious offences. - The Financial Intelligence Centre (‘the Centre’)
The Financial Intelligence Centre was established to be the sole designated agency responsible for the receipt, requesting, analysing and disseminating of the disclosure of suspicious transaction reports to Law Enforcement Agencies (LEAs) and other foreign designated authorities pursuant to the Financial Intelligence Centre Act No 46 of 2010 (“The FIC Act” or “the Act”). Further, it is the responsibility of the FIC to issue guidelines to reporting entities to ensure reporting entities comply accordingly with the provisions of the FIC Act.
The Financial Intelligence Centre is governed by the Board of Directors appointed by the Zambian Republican President. The primary purpose of the Board is to guide and control the overall direction of the business of the FIC as provided for under section 8 of the Act, and provide policy oversight on AML/CFT matters. - Law Enforcement Agency (LEAs)
Section 2 of the FIC Act designates the following as Law enforcement Agencies (LEAs) in Zambia:
i. The Zambia Police Force, established under the Constitution;
ii. The Zambia Security Intelligence Service, established under the Zambia Security Intelligence Act;
iii. The Immigration Department, established under the Immigration and Deportation Act, 2010;
iv. The Drug Enforcement Commission, established under the Narcotic Drugs and Psychotropic Subsistence Act;
v. The Anti-Money Laundering Investigations Unit, established under the Prohibition and Prevention of Money Laundering Act, 2001
vi. The Anti-Corruption Commission, established under the Anti-Corruption Act, 2010;
vii. The Zambia Revenue Authority, established under the Zambia Revenue Authority Act; and
viii. Any other Investigative Institution that the Minister may, by statutory Instrument designate. - Supervisory Authorities
The FIC Act defines the Supervisory Authorities as:-
i. The Governor of the Bank of Zambia, appointed under the Bank of Zambia Act;
ii. The Registrar of Co-operatives, appointed under the Co-operatives Act, 1998;
iii. The Registrar of Pensions and Insurance, appointed under the Pension Scheme Regulation Act, 1996;
iv. The Commissioner under the Securities Act;
v. The Registrar appointed under the Patents and Companies Registration Agency Act, 2010;
vi. The Commissioner of Lands;
vii. The Zambia Development Agency, established under the Zambia Development Agency Act, 2006;
viii. The Licencing Committee, established under the Tourism and Hospitality Act, 2007;
ix. The Registrar of Estate Agents appointed under the Estate Agents Act, 2001;
x. The Law Association of Zambia, established under the Law Association of Zambia Act;
xi. The Zambia Institute of Chartered Accountants established under the Accountants Act, 2008 ; and
xii. Any other authority established under any written law as a supervisory or as the Minister may prescribe. - Reporting Entities
Reporting entities are institutions regulated by Supervisory Authorities and are required to make a suspicious transaction reports concerning Money Laundering, Terrorist Financing and any other serious offences to the Financial Intelligence Centre.
Inter alia, reporting entities include:
i. Financial institutions e.g. Commercial Banks and Non-Bank Financial Institutions e.g. micro finance institutions
ii. Designated non-financial businesses and professions (DNFBPs)
e.g. Casinos, Real estate agents, Accountants; and Legal Practitioners - National Prosecution Authority
The National Prosecution Authority (NPA) is one of the stakeholders in AML/CFT regime. NPA is the principal authority for all prosecutions in the country as it houses the Office of the Director of Public Prosecutions (DPP). All prosecutors in Zambia derive their authority to prosecute from the DPP pursuant to section 82 of the Criminal Procedure Code, Chapter 88 of the Laws of Zambia. - Judiciary
The Judiciary is considered to be a relevant stakeholder on AML/CFT related issues as it provides efficacy to the process by being an impartial arbiter in proceedings. All prosecuted cases and claims for forfeiture must come before the courts of law. - Others Relevant Government Agencies
The Office of the Auditor General, Ministry of Home Affairs, Ministry of Mines, Ministry of Defence, Zambia Air Force, and Registrar of Societies among others are considered very critical for the provision of intelligence Information on Money Laundering, Terrorist Financing and other serious offences
AML/CFT Legal Framework
The Zambian Government has enacted AML/CFT legislation, to deal with money laundering, Financing of Terrorism, forfeiture and seizure of proceeds of crimes, prevention of corruption, fraud, and financial crime among others.
The AML/CFT legal framework covers inter alia the following Legislation:
i. Prohibition and Prevention of Money Laundering Act No 14 of 2001, amended Act No. 44 of 2010 (Defines and criminalizes Money laundering)
ii. Anti-Terrorism Act No 21 of 2007 (Criminalizes financing of terrorism (section 20);
iii. Forfeiture of Proceeds of Crime Act No 19 of 2010 (Provides civil and criminal forfeiture and seizure of proceeds of crimes);
iv. Financial Intelligence Centre Act No 46 of 2010 (Establishes the Financial Intelligence Centre, provides for duties of supervisory authorities and reporting entities)
v. The Public Interest Disclosure (Protection of Whistleblowers) Act No. 4 of 2010 (Provides for disclosure of conduct inimical to public interest)
vi. Mutual Legal Assistance in Criminal Matters Act (MLACMA), 1993
vii. The Plea Negotiations and Agreements Act, No. 20 of 2010;
viii. The Anti-Corruption Act, No. 3 of 2012 (replacing the Anti-Corruption Act, No. 38 of 2010) ( vested with powers to investigate corruption offences
ix. The Non-Governmental Organisations Act, No. 16 of 2009; and
x. The Penal Code Act, Cap. 87 of the Laws of Zambia.
latest Running | Jun 21, 2021 White Oreo Tech Grey CT8527-100 Release Date - SBD
 National AML_CTPF Policy.pdf | [ ] |
