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 in combating crime and corruption, with systemic issues affecting the effectiveness of its anti-corruption frameworks and law enforcement agencies. Despite the establishment of various legal measures and institutions aimed at addressing corruption, such as the Anti-Corruption Commission and the fast-track financial crimes court, implementation remains weak due to limited capacity, bureaucratic hurdles, and perceived political interference, particularly in high-profile cases.

The country grapples with serious criminal activities, including human trafficking, counterfeit goods, and illegal logging, often exacerbated by organized crime networks that exploit local communities. While there have been some improvements in governance and law enforcement capabilities, corruption within government and law enforcement remains pervasive, undermining efforts to build resilience against crime and protect citizens from its impacts.

Zambia's economy, characterized by a GDP of $22.15 billion and a GNI per capita of $1,030, has faced significant challenges since 2020, including a historic default on Eurobond payments due to the COVID-19 pandemic. The country has struggled with a debt overhang that limits access to international capital markets, forcing reliance on domestic borrowing, which in turn hampers private sector growth. Despite recent reforms under President Hakainde Hichilema aimed at stabilizing the economy and improving the investment climate, including a partnership with the IMF for fiscal reforms, Zambia's potential remains constrained by issues such as corruption, inadequate infrastructure, and a lack of skilled labor.

The Zambian government has made strides to attract foreign direct investment (FDI) by creating platforms for public-private dialogue and reforming its regulatory framework, yet frequent policy changes and bureaucratic inefficiencies continue to deter investors. The mining sector dominates the economy, contributing significantly to exports and government revenue, while other sectors like agriculture and ICT present opportunities for growth. Overall, while Zambia's investment landscape shows promise, it is tempered by persistent challenges that require ongoing reform and commitment to transparency and good governance.