Zambia has lost US$3.5BN in illicit deals – FIC

By GIDEON NYENDWA

THE Financial Intelligence Centre (FIC) has red flagged over US$3.5 billion in suspected illicit financial flows in 2024, with the majority of transactions linked to commercial activities conducted by multinational private sector enterprises.
According to the FIC’s 2024 Money Laundering and Terrorist Financing Trends Report, the centre has also uncovered a K1 billion (about US$5 million) mineral smuggling syndicate involving Zambians and East Africans operating between 2022 and 2024.
The illegal operation reportedly involved smuggling undeclared cash into Zambia, which was used to buy illegally mined minerals including copper, gold and precious stones in areas such as Kasempa, Mufulira, Kitwe and Chingola.
These minerals were allegedly exported back to the foreign country without passing through formal customs and tax procedures.
The funds were laundered through Zambian bank accounts and mobile wallets, many of which were registered under local citizens to obscure the identities of the true owners.
The FIC attributes the growing trend to the country’s porous borders and the relative ease with which foreign nationals can open financial accounts.
“The rise in cross-border financial crimes signals a serious threat to national security and economic stability,” the report warned, adding that unless border and financial regulations are tightened, the country could become a hotspot for global illicit trade.
In total, 1, 203 individuals were implicated in the 2024 financial crimes 401 corporate entities and 802 natural persons. Most of the natural persons were foreign nationals who either conducted transactions themselves or used Zambian intermediaries.
The FIC report also highlighted a suspicious pattern involving 13 companies registered in 2023 using the same business address. Though the companies were officially listed as engaging in non-specialised wholesale trade and named Zambian nationals as beneficial owners, investigations revealed that foreign nationals controlled and managed the financial operations.
Meanwhile, the FIC reported a decline in corruption-related Suspicious Transaction Reports involving the public sector, dropping from 55 in 2023 to 40 in 2024 signalling a potential shift in illicit financial behaviour from public to private sector operations.
Law enforcement agencies have since been handed the cases for investigation into possible tax evasion and money laundering.
The FIC has urged the government to strengthen border controls and enforce stricter financial oversight mechanisms to curb the rise in transnational financial crime