|
|
Sanctions:
None applicable.
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
Zambia is not a major financial center. The proceeds of narcotics
transactions and money derived from public corruption are the
major sources of laundered money. Human trafficking is also a
problem. Money laundering takes place in both the formal
financial sector and the non-bank financial sector. Money
launderers in Zambia have used structuring, currency exchanges,
monetary instruments, gambling, under-valuing assets, front
businesses, and non-financial institutions to launder their
proceeds. Other means include securities, debit/credit cards, bulk
cash smuggling, wire transfers, and false currency reporting.
Further, some criminals use their proceeds to purchase luxury
goods such as vehicles and real estate.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, and money exchanges and remitters
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, money exchanges and remitters,
securities dealers and pension funds, insurance companies,
leasing companies
Number of STRs received and time frame: Not available
Number of CTRs received and time frame: Not available
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Not available
Convictions: Not available
Assets forfeited: criminally: Not available civilly: 0
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Zambia is a member of the Eastern and Southern Africa Anti-
Money Laundering Group (ESAAMLG), a Financial Action Task
Force (FATF)-style regional body. Its most recent mutual
evaluation can be found here: http://www.esaamlg.org/reports/me.
php
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
In 2010, the Government of Zambia (GOZ) passed legislation
creating a financial intelligence unit (FIU) independent from law
enforcement agencies. The FIU has received little government
funding and is not yet operational. The FIU has received some
assistance from international donors and continues to look for
capacity building and financial support. Like much of the Zambian
government, authorities tasked with investigating and prosecuting
financial crimes are hampered by a lack of resources and
capacity.
In 2010, the major shareholder of Zambia’s sixth largest bank was
charged with money laundering in connection with an illegal
ownership stake in the bank. The Bank of Zambia also intervened
in the operations of the bank, removed senior management, and
dissolved the equity holders’ shares.
The Zambian government is currently developing a number of
multi-facility economic zones that are similar to free trade zones.
The GOZ should become a party to the UN International
Convention for the Suppression of the Financing of Terrorism.
____________________________________________________
US State Dept Narcotics Report 2012:
Zambia is not a major producer or exporter of illegal drugs, nor is
Zambia a significant transit route for drug trafficking. Cannabis
continues to be the primary drug abused in Zambia, as it is the
only illicit drug that is locally cultivated in large quantities, mainly
by small-holder farmers. It is consumed locally and exported
regionally and to Europe. Small amounts of other illicit drugs and
precursors to synthetic drugs are brought into Zambia for
domestic consumption or for transshipment to other markets.
The Drug Enforcement Commission (DEC) works closely with
other Zambian law enforcement and health agencies on drug
control and treatment programs and has a record of good
cooperation with the U.S. Government. As is true of the Zambian
government generally, the DEC is hampered by a lack of
resources and capacity. Zambia is a party to the 1988 UN Drug
Convention.
The DEC reported a 42 percent decrease in the amount of
cannabis seized in the first ten months of 2011. The sharp decline
appears to be the result of a “base effect”: a particularly large
seizure of cannabis plants in 2010 increased seizures by 260
percent for that year. Comparing this year with last year’s large
spike in seizures exhibits a sharp decline that may not accurately
reflect other trends. In the same ten month period, the DEC
seized 21 kilograms of ephedrine and de minimus amounts of
cocaine, heroin, and other drugs. The DEC reported an increase
in Khat trafficking from Tanzania, but reported no seizure
statistics.
There appear to have been some small crystal methamphetamine
seizures even though none were reported. Failure to report the
seizures appears to have resulted from oversight or inefficiency
following recent leadership changes in enforcement agencies
under the new government.
The Zambian Government (GRZ) works closely with its neighbors
and countries in the region on drug and drug trafficking issues
through Joint Permanent Commissions on Defense and Security
and regional organizations such as the Southern Africa Regional
Police Chiefs Co-operations (SARPCCO) and the South African
Narcotics Bureau. The GRZ also collaborates with the U.S. Drug
Enforcement Administration, United Nations Office for Drugs and
Crime, the International Narcotics Control Board, and the United
Kingdom’s Customs & Excise Service.
The National Education Campaign Division (NECD) of the DEC
carries out drug education in schools throughout the country and
provides drug treatment and counseling. Zambia does not have
dedicated drug treatment facilities. The DEC works with hospitals
to provide treatment. NECD provides counseling and treatment at
hospitals and clinics throughout the country.
No evidence has emerged to suggest that current government
officials are involved in the production or trafficking of drugs. The
Zambian Government does not, as a matter of government policy,
encourage drug-trafficking or the laundering of the proceeds of
drug-trafficking.
The U.S. Government provides training assistance to Zambian
law enforcement agencies, including the DEC, through the
International Law Enforcement Academies in Gaborone,
Botswana, and Roswell, New Mexico. The 1931 extradition treaty
between the United States and the United Kingdom governs
extraditions between the United States and Zambia, although the
treaty has not been used in several years.
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2)
Zambia is a source, transit, and destination country for men,
women, and children subjected to forced labor and sex trafficking.
Most trafficking occurred within the country’s borders and involved
women and children from rural areas exploited in cities in
domestic servitude or other types of forced labor in the
agricultural, textile, and construction sectors. Zambian trafficking
victims have also been identified in South Africa, the Democratic
Republic of the Congo, and Namibia. While orphans and street
children are the most vulnerable, children of more affluent village
families are also vulnerable to trafficking, as sending children to
the city for work is perceived as a status symbol. Some child
domestic workers receive adequate room and board, but others
are starved, beaten, deprived of sleep, or overworked to the point
of exhaustion – practices indicative of forced labor. To a lesser
extent, Zambia is a destination for migrants from Malawi and
Mozambique who are exploited in forced labor or forced
prostitution after arrival in Zambia. Asian and South Asian males
continue to be trafficked to and through Zambia for forced labor in
the mining and construction industries in Zambia or South Africa.
An increasing number of Chinese and Indian men recruited to
work in Chinese- or Indian-owned mines in Zambia’s Copperbelt
region are reportedly kept in conditions of forced labor by the
mining companies. Officials believe transnational labor trafficking
of South Asians through Zambia is becoming increasingly
organized and linked to criminal groups based largely in South
Africa. Zambia’s geographic location and numerous porous
borders make it a nexus for trafficking from the Great Lakes
Region to South Africa. While the movement of Congolese
children to and through Zambia remains a concern, the
destination of these children remains unclear; some may be
trafficking victims.
The Government of Zambia does not fully comply with the
minimum standards for the elimination of trafficking; however, it is
making significant efforts to do so. During the reporting period,
the government increased law enforcement efforts by convicting
one trafficking offender under its 2008 anti-trafficking law and
investigating and prosecuting three additional suspected
trafficking cases. Government-provided protection for victims
remained weak; though the government continued to provide
services to victims through partnerships with international
organizations and NGOs, the continued lack of shelters
significantly hindered appropriate victim care, as victims were, at
times, detained in jails alongside trafficking offenders.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
In 2007, the Zambian Government passed a counterterrorism bill,
which criminalized acts of terrorism, including terrorist training,
incitement, and financing, and granted the government significant
authority to investigate, prevent, and prosecute acts of terrorism.
Inadequate resources and training impeded Zambia’s law
enforcement agencies’ counterterrorism capabilities, however.
Zambia’s long and porous borders continued to pose a challenge
in terms of the monitoring and control of illegal immigrants
attempting to enter the country. Its points of entry remained
vulnerable to human trafficking and international crime. Instability
in Zimbabwe, Somalia, and Congo resulted in an increase in
migrants during 2009. With U.S. assistance, Zambia has sent a
number of law enforcement officers to the International Law
Enforcement Academy in Botswana to learn and understand
better methods to challenge illegal border crossing.
The Zambian government does not have an internationally-
compliant anti-money laundering or counterterrorist financing
regime, but the Zambian government has announced its
intentions to create a Financial Intelligence Unit (FIU) within the
Bank of Zambia that meets international standards.
____________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
None applicable.
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
Zambia is not a major financial center. The proceeds of narcotics
transactions and money derived from public corruption are the
major sources of laundered money. Human trafficking is also a
problem. Money laundering takes place in both the formal
financial sector and the non-bank financial sector. Money
launderers in Zambia have used structuring, currency exchanges,
monetary instruments, gambling, under-valuing assets, front
businesses, and non-financial institutions to launder their
proceeds. Other means include securities, debit/credit cards, bulk
cash smuggling, wire transfers, and false currency reporting.
Further, some criminals use their proceeds to purchase luxury
goods such as vehicles and real estate.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, and money exchanges and remitters
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, money exchanges and remitters,
securities dealers and pension funds, insurance companies,
leasing companies
Number of STRs received and time frame: Not available
Number of CTRs received and time frame: Not available
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Not available
Convictions: Not available
Assets forfeited: criminally: Not available civilly: 0
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Zambia is a member of the Eastern and Southern Africa Anti-
Money Laundering Group (ESAAMLG), a Financial Action Task
Force (FATF)-style regional body. Its most recent mutual
evaluation can be found here: http://www.esaamlg.org/reports/me.
php
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
In 2010, the Government of Zambia (GOZ) passed legislation
creating a financial intelligence unit (FIU) independent from law
enforcement agencies. The FIU has received little government
funding and is not yet operational. The FIU has received some
assistance from international donors and continues to look for
capacity building and financial support. Like much of the Zambian
government, authorities tasked with investigating and prosecuting
financial crimes are hampered by a lack of resources and
capacity.
In 2010, the major shareholder of Zambia’s sixth largest bank was
charged with money laundering in connection with an illegal
ownership stake in the bank. The Bank of Zambia also intervened
in the operations of the bank, removed senior management, and
dissolved the equity holders’ shares.
The Zambian government is currently developing a number of
multi-facility economic zones that are similar to free trade zones.
The GOZ should become a party to the UN International
Convention for the Suppression of the Financing of Terrorism.
____________________________________________________
US State Dept Narcotics Report 2012:
Zambia is not a major producer or exporter of illegal drugs, nor is
Zambia a significant transit route for drug trafficking. Cannabis
continues to be the primary drug abused in Zambia, as it is the
only illicit drug that is locally cultivated in large quantities, mainly
by small-holder farmers. It is consumed locally and exported
regionally and to Europe. Small amounts of other illicit drugs and
precursors to synthetic drugs are brought into Zambia for
domestic consumption or for transshipment to other markets.
The Drug Enforcement Commission (DEC) works closely with
other Zambian law enforcement and health agencies on drug
control and treatment programs and has a record of good
cooperation with the U.S. Government. As is true of the Zambian
government generally, the DEC is hampered by a lack of
resources and capacity. Zambia is a party to the 1988 UN Drug
Convention.
The DEC reported a 42 percent decrease in the amount of
cannabis seized in the first ten months of 2011. The sharp decline
appears to be the result of a “base effect”: a particularly large
seizure of cannabis plants in 2010 increased seizures by 260
percent for that year. Comparing this year with last year’s large
spike in seizures exhibits a sharp decline that may not accurately
reflect other trends. In the same ten month period, the DEC
seized 21 kilograms of ephedrine and de minimus amounts of
cocaine, heroin, and other drugs. The DEC reported an increase
in Khat trafficking from Tanzania, but reported no seizure
statistics.
There appear to have been some small crystal methamphetamine
seizures even though none were reported. Failure to report the
seizures appears to have resulted from oversight or inefficiency
following recent leadership changes in enforcement agencies
under the new government.
The Zambian Government (GRZ) works closely with its neighbors
and countries in the region on drug and drug trafficking issues
through Joint Permanent Commissions on Defense and Security
and regional organizations such as the Southern Africa Regional
Police Chiefs Co-operations (SARPCCO) and the South African
Narcotics Bureau. The GRZ also collaborates with the U.S. Drug
Enforcement Administration, United Nations Office for Drugs and
Crime, the International Narcotics Control Board, and the United
Kingdom’s Customs & Excise Service.
The National Education Campaign Division (NECD) of the DEC
carries out drug education in schools throughout the country and
provides drug treatment and counseling. Zambia does not have
dedicated drug treatment facilities. The DEC works with hospitals
to provide treatment. NECD provides counseling and treatment at
hospitals and clinics throughout the country.
No evidence has emerged to suggest that current government
officials are involved in the production or trafficking of drugs. The
Zambian Government does not, as a matter of government policy,
encourage drug-trafficking or the laundering of the proceeds of
drug-trafficking.
The U.S. Government provides training assistance to Zambian
law enforcement agencies, including the DEC, through the
International Law Enforcement Academies in Gaborone,
Botswana, and Roswell, New Mexico. The 1931 extradition treaty
between the United States and the United Kingdom governs
extraditions between the United States and Zambia, although the
treaty has not been used in several years.
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2)
Zambia is a source, transit, and destination country for men,
women, and children subjected to forced labor and sex trafficking.
Most trafficking occurred within the country’s borders and involved
women and children from rural areas exploited in cities in
domestic servitude or other types of forced labor in the
agricultural, textile, and construction sectors. Zambian trafficking
victims have also been identified in South Africa, the Democratic
Republic of the Congo, and Namibia. While orphans and street
children are the most vulnerable, children of more affluent village
families are also vulnerable to trafficking, as sending children to
the city for work is perceived as a status symbol. Some child
domestic workers receive adequate room and board, but others
are starved, beaten, deprived of sleep, or overworked to the point
of exhaustion – practices indicative of forced labor. To a lesser
extent, Zambia is a destination for migrants from Malawi and
Mozambique who are exploited in forced labor or forced
prostitution after arrival in Zambia. Asian and South Asian males
continue to be trafficked to and through Zambia for forced labor in
the mining and construction industries in Zambia or South Africa.
An increasing number of Chinese and Indian men recruited to
work in Chinese- or Indian-owned mines in Zambia’s Copperbelt
region are reportedly kept in conditions of forced labor by the
mining companies. Officials believe transnational labor trafficking
of South Asians through Zambia is becoming increasingly
organized and linked to criminal groups based largely in South
Africa. Zambia’s geographic location and numerous porous
borders make it a nexus for trafficking from the Great Lakes
Region to South Africa. While the movement of Congolese
children to and through Zambia remains a concern, the
destination of these children remains unclear; some may be
trafficking victims.
The Government of Zambia does not fully comply with the
minimum standards for the elimination of trafficking; however, it is
making significant efforts to do so. During the reporting period,
the government increased law enforcement efforts by convicting
one trafficking offender under its 2008 anti-trafficking law and
investigating and prosecuting three additional suspected
trafficking cases. Government-provided protection for victims
remained weak; though the government continued to provide
services to victims through partnerships with international
organizations and NGOs, the continued lack of shelters
significantly hindered appropriate victim care, as victims were, at
times, detained in jails alongside trafficking offenders.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
In 2007, the Zambian Government passed a counterterrorism bill,
which criminalized acts of terrorism, including terrorist training,
incitement, and financing, and granted the government significant
authority to investigate, prevent, and prosecute acts of terrorism.
Inadequate resources and training impeded Zambia’s law
enforcement agencies’ counterterrorism capabilities, however.
Zambia’s long and porous borders continued to pose a challenge
in terms of the monitoring and control of illegal immigrants
attempting to enter the country. Its points of entry remained
vulnerable to human trafficking and international crime. Instability
in Zimbabwe, Somalia, and Congo resulted in an increase in
migrants during 2009. With U.S. assistance, Zambia has sent a
number of law enforcement officers to the International Law
Enforcement Academy in Botswana to learn and understand
better methods to challenge illegal border crossing.
The Zambian government does not have an internationally-
compliant anti-money laundering or counterterrorist financing
regime, but the Zambian government has announced its
intentions to create a Financial Intelligence Unit (FIU) within the
Bank of Zambia that meets international standards.
____________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
| Further Tables |
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
*Please note that FATF deems that a country has significant aml deficiencies if
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
| ZAMBIA |
| KnowYourCountry |
|
|
| Last Updated: 16 April 2012 |