The legislative and institutional framework for combating money laundering in Zambia

Abstract

The study discusses the legislative and institutional framework for combating money laundering in Zambia. After examining the historical origins and evolution of the problem of money laundering, the study proceeds to review the various measures that the Zambian Government has put in place since 1980 to combat money laundering. In so doing, the study examines in detail the roles played by the law enforcement agencies in Zambia, amongst them, the Anti Money Laundering Investigation Unit, the Drug Enforcement Commission and the Financial Intelligence Centre. The study also brings into perspective the roles played by the international community in the fight against money laundering and counter financing of terrorism.

At the centre of the study is the question whether or not Zambia has adequate legislative and institutional framework for combating money laundering, especially in the light of technological sophistications that has taken place since 1980s.

Relying on the qualitative method of data collection, the study engaged the seven institutions mandated to combat money laundering in Zambia. Structured interviews and participant observation was adopted as a method of data collection. This method of data collection implied having to be attached to the institutions mandated to combat money laundering in Zambia for most of the duration of study. The study also among others relied on desk research and review of leading judicial precedents on money laundering in Zambia

The research established that Zambia has adequate legislative and institutional framework for combating money laundering. The study however noted that despite this state of affair, there are legal provisions that tend to undermine the autonomy of these institutions. The lack of protected tenure of office for officers serving in the Anti Money Laundering Investigations Unit, the Drug Enforcement Commission, the Zambia Police Service, the Bank of Zambia and the Financial Intelligence Centre were among the bottle necks noted. Further it was observed that there is lack of coordinated interface amongst the seven law enforcement agencies.

The research notably recommends inter alia that the Anti Money Laundering Investigations Unit be made a fully fledged institution enjoying its own autonomy and independence away from the Drug Enforcement Commission as envisaged by the Prohibition and Prevention of Money Laundering Act. It is further recommended that the Office of the Auditor General of Zambia be granted prosecution powers like is the case in Lusophone countries. This is vital in an attempt to curtail abuse and embezzlement of public funds.