Anti-Money Laundering and Know Your Customer Regulations in Zambia

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Overview of AML/KYC Regulations

Anti-Money Laundering (AML) and Know Your Customer (KYC) are financial regulations that aim to prevent money laundering and terrorism financing. The Financial Intelligence Centre (FIC) in Zambia is responsible for enforcing these regulations.

Purpose of KYC

KYC aims to identify and verify the identity of customers, especially those who are not physically present. Financial institutions should take adequate measures to address the specific risk of money laundering, financing of terrorism, and other serious offences when dealing with non-physical customers.

Effectiveness of Due Diligence for Non-Physical Customers

Due diligence conducted on non-physical customers should be no less effective than where the customer appears in person. Financial institutions may require additional documentary evidence or measures to verify or certify documents supplied by the customer.

Reporting Requirements

Financial institutions are required to report suspicious activities to the Anti-Money Laundering Investigations Unit and for financial institutions, the Financial Intelligence Centre.

Volume of Suspicious Activity Reports (SARs)

Information on the volume of SARs is not publicly available. However, there is no obligation to report anything more than suspicious transactions.

Penalties for Non-Compliance

There are penalties for non-compliance with reporting requirements, including fines and imprisonment.

Tipping Off

Tipping off refers to divulging information about an investigation into money laundering without lawful authority. The consequences include a fine not exceeding one hundred and thirty-nine thousand penalty units (approximately ZMK25,020,000) or imprisonment for a term not exceeding five years.

Specific Requirements for Financial Institutions

Financial institutions should take adequate measures to address the specific risk of money laundering, financing of terrorism, and other serious offences when dealing with non-physical customers. They may require additional documentary evidence or measures to verify or certify documents supplied by the customer.

Suspicious Activity Reports (SARs)

A SAR is a report made to the authorities about suspicious transactions or activities. There are no de-minimis thresholds below which transactions do not need to be reported.

Additional Requirements for Non-Physical Customers

Due diligence conducted on non-physical customers should be no less effective than where the customer appears in person. Financial institutions may require additional documentary evidence or measures to verify or certify documents supplied by the customer.

Purpose of a Know Your Customer (KYC) Guide

Unfortunately, the text does not provide information on this question.