Zambia Country Summary

FATF Status

Zambia is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The latest follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Zambia was undertaken in 2024 . According to that Evaluation, Zambia was deemed Compliant for 12 and Largely Compliant for 18 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Zambia faces significant challenges related to crime and corruption, with pervasive issues impacting governance and economic stability. Despite having established legal frameworks and institutions aimed at combating corruption, such as the Anti-Corruption Commission and various acts to promote transparency, the effectiveness of these measures is undermined by political interference and a culture of unaccountability, leading to continued high levels of corruption and organized crime.

The country grapples with serious criminal activities, including human trafficking, counterfeit goods, and illegal logging, often exacerbated by the involvement of foreign actors and corrupt officials. While there have been some improvements in governance and law enforcement capacity, particularly in addressing human trafficking, the overall resilience to crime remains weak due to insufficient judicial resources, limited civil society support, and a lack of comprehensive strategies to tackle illicit financial flows and organized crime effectively.

Zambia's economy is heavily reliant on its vast copper resources, which account for over 75% of export earnings and a significant portion of government revenue. Despite facing challenges such as a recent eurobond default, a severe drought impacting food security, and electricity shortages, the country reported a GDP growth of 3.9% in 2024, driven by sectors like ICT, construction, and mining. However, Zambia's investment climate is hindered by bureaucratic inefficiencies, inconsistent policies, and corruption, making it difficult to attract foreign investment despite the government's stated openness to business and various incentives in sectors like mining, energy, and agriculture.