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The Financial Intelligence Centre (FIC) has uncovered a vast and growing network of illegal mining and cross-border smuggling between Zambia and an East African country, identified in its latest report only as “Country O.”
According to the FIC, both Zambian and foreign nationals are engaged in illicit trade involving minerals, grain, timber, and undeclared currency—all while evading customs and tax laws.
“The Centre noted an increasing trend of illegal business activities between East Africa and Zambia to facilitate the illegal movement of goods such as grain, timber and minerals,” the report stated.
The illegal mining operations have surged particularly in Copperbelt districts such as Kasempa, Mufulira, Kitwe and Chingola.
Read more: Financial Intelligence Centre uncovers $3.5 billion in illicit flows, flags multinational syndicates
In one case, the FIC tracked suspicious transaction reports (STRs) linked to nationals of ‘Country O’ who regularly entered Zambia carrying undeclared foreign currency.
Once inside the country, they used the money to purchase illegally mined minerals, which were smuggled back to East Africa.
“These foreigners open bank accounts and mobile wallets to store and move funds,” the FIC reported. “Some of these funds are deposited in accounts belonging to Zambian nationals for the same purpose.”
Between 2022 and 2024, the scheme generated over K1 billion and US$5 million in credit turnover—highlighting the massive scale of the operation.
Authorities believe the criminal network has flourished due to weak border controls and a lenient banking environment that enables foreign nationals to open accounts with minimal scrutiny.
The FIC has since referred the case to law enforcement for investigation into possible tax evasion and money laundering.
The report warns that Zambia faces growing exposure to cross-border financial crimes, with illicit mineral trading posing a serious threat to national revenue and environmental sustainability.
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