By Mubanga Mubanga
Transparency international Zambia executive director Maurice Nyambe says government should address the risk factors that are contributing to Illicit Financial Flows (lFFs), as reported by the 2024 Financial Intelligence Centre (FIC) report.
And Home Affairs minister Jack Mwiimbu said the 10th FIC Trends Report, showing Zambia’s steady progress in combating financial crime, reflected the impact of the UPND administration’s zero tolerance stance on corruption.
In a statement yesterday, on the recently released 2024 Trends Report by the FIC, Nyambe stated that the government should address risk factors such as use of cash transactions, mobile money fraud among others factors.
“The report indicates that the FIC detected suspected Illicit Financial Flows (IFFs) worth USD $3.5 billion, mostly associated with commercial activities perpetuated by multinational enterprises. In line with our recent study on risk factors for IFFs in Zambia,” Nyambe stated. “TI-Z calls for urgent government action to addressing the risk factors contributing to IFFs. These include the high use of cash transactions, mobile money fraud, and false invoicing aimed at justifying international transfers through the banking sector, among others.”
However, Nyambe stated TI-Z was disappointed that FIC analysed less on suspected public sector corruption, which led to low dissemination on corruption in the public sector as compared to cases involving money laundering.
“TI-Z is however disappointed that the FIC analysed less STRs (Suspicious Transactions Report) related to public sector corruption, resulting in the low number of disseminations on corruption as compared to cases relating to money laundering, fraud and tax evasion,” Nyambe stated. ” TI-Z wishes to remind the FIC that public sector corruption is a dangerous vice, with serious economic and social consequences, and thus requiring greater attention.”
He also commended FIC for increasing the number of cases that were disseminated to Law Enforcement Agencies from 923 in 2023 to 951 in 2024, which represented an increase of 3 percent.
“Out of these cases, 10 related to corruption, an increase from 9 cases disseminated in 2023. From LEAs on disseminated reports indicates that 3 convictions and 7 non-conviction-based forfeitures were secured, resulting in the forfeiture of assets valued at USD $26.5 million and K71.5 million in properties and cash,” Nyambe stated.
He further called on FIC to increase awareness of its activities and to enhance its supervision of law and accounting firms, real estate agents, and dealers in precious stones and minerals.
And in a statement, Mwiimbu stated that the report underscored risks tied to cyber fraud, regulatory evasion and the misuse of prepaid branded cards for illicit transactions.
He stated that the report indicated a significant reduction in public sector corruption cases, with emerging threats now focused on money laundering, fraud and tax evasion.
The minister stated that the collaboration with the Zambia Revenue Authority (ZRA) led to a sharp rise in tax assessments climbing from K 1.2 billion in 2023 to K28.9 billion in 2024.
He stated that the Law Enforcement Directorate achieved key milestones, securing three conviction based and seven non-conviction-based asset forfeitures.
Mwiimbu stated that these efforts recovered over $2.5 million and K79 million worth of property, along with bank holdings of K 1.5 million and $ 24 million.
“The findings are a strong indication that President Hakainde Hichilema’s anti-corruption strategy is delivering results. The introduction of robust cyber laws has enhanced Zambia’s ability to detect and tackle sophisticated financial crimes involving both domestic and foreign actors,” he stated. “Government is committed to working closely with the FIC, ZRA, Law Enforcement Directorate, and other institutions to tighten regulatory controls and shield the financial system from abuse.”
Mwiimbu stated that several investigations remained active to ensure justice was served.
And Mwiimbu stated that emerging challenges, including cyber fraud, regulatory evasions, and illicit fund transfers via prepaid branded cards, were being addressed.
He stated that Illicit financial flows tied to illegal money and timber logging, as well as cybercrimes involving foreign actors, were also under scrutiny.
Mwiimbu stated that suspicious Transaction Reports decreased by 12.74%, from 10,293 in 2024 to 8,981 in 2025, reflecting improved financial oversight.
