Zambia Reports a Drop in Public Sector Corruption, Says FIC Report

Zambia has seen a decrease in public sector corruption cases, going from 55 in 2023 to 40 in 2024.

The 10th Money Laundering and Terrorism Financing Trends Report, published by the Financial Intelligence Centre (FIC), attributes this decline to better detection systems and improved institutional controls.

However, the report points out that corruption is still a problem, with ongoing investigations into issues like abuse of office, fraudulent procurement, and misappropriation of funds.

During this time, the FIC sent out 951 intelligence reports to law enforcement, an increase from 923 the year before. Out of these, 573 were given to the Zambia Revenue Authority (ZRA), resulting in tax assessments of over K28.9 billion.

The Centre also reported asset forfeitures totaling $26.5 million and K71.5 million, some of which were achieved through non-conviction-based processes that follow international anti-money laundering standards.

Even with these improvements, the FIC identified $3.5 billion in suspected illegal financial flows, mostly linked to shell companies that have little or no real business activity. These flows were connected to foreign nationals involved in mis-invoicing, tax evasion, illegal mining, and suspicious international transfers.

The wholesale, retail, and mining sectors were noted as the most at risk.

The 2024 FIC report also points out a lot of illegal mining activity. Some cooperatives and smelters were found to be operating without the necessary permits. In one instance, the FIC tracked over $1.5 million sent abroad by a company running an illegal smelter in Copperbelt Province. This company obtained copper ore from unlicensed cooperatives and sold it to legitimate mining companies, raising concerns about the integrity of the supply.