That FIC report is making waves — and the numbers are huge.
What the FIC found for 2024:
1. Currency transactions more than doubled
– K1,036 billion in 2024 vs K501 billion in 2023*. That’s over K1 trillion moving through Zambia’s financial system in a year.
2. Majority linked to suspected Illicit ministers and senior members in goverment Financial Flows (IFFs)
– The FIC’s _Money Laundering and Terrorism Financing Trends Report_ attributes most of that surge to suspected IFFs and foreign exchange trading.
– Overall, Zambia recorded US$3.5 billion in illicit financial transactions in 2024*, which is about K91+ billion*. CTPD says that’s nearly 42% of Zambia’s proposed 2025 National Budget.
3. How the money moved
– Private sector commercial activities* by multinational enterprises drove most of it.
– Tax evasionn was the dominant offence, along with trade misinvoicing and illegal mining.
– FIC identified 1,203 individuals and entities*: 401 corporate entities and 802 individuals, many foreign nationals.
– Common pattern: Newly registered companies with little commercial activity. One case: 13 companies at the same address in 2023, with Zambians listed as owners but foreign nationals controlling accounts. Cash deposits of US$75,000-US$100,000 followed by inter-company transfers and outward remittances.
*4. Other trends FIC flagged*
– *Mineral smuggling*: Foreign nationals from an East African country recorded K1 billion and $5 billion credit turnover 2022-2024 through illegal mineral trade.
– *Cash still a problem*: BAZ says cash remains a key enabler of money laundering due to its anonymous nature. A ZMW 10 million fraud case involved funds siphoned via ATM and mobile money agent cash withdrawals.
2024 alone*: FIC detected K61 billion in suspected outflows tied to tax evasion and money laundering by foreign nationals.
5. FIC’s capacity is up
– Suspicious Transaction Reports analyzed jumped from *155 in 2022 to 15,696 in 2023*.
– Intelligence reports disseminated to law enforcement: *923 in 2023 vs 129 in 2022*, worth K13.58 billion. 0270
What happens next per FIC/Ministry of Finance:
Finance Minister Situmbeko Musokotwane said govt is working to strengthen monitoring, enforcement, and transparency. CTPD is pushing for: stronger law enforcement, beneficial ownership disclosure, better tax/customs intelligence,