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Transparency International Zambia (TI-Z) has called for urgent government action to addressing the risk factors contributing to Illicit Financial Flows (IFFs).
The FIC detected suspected IFFs worth US$3.5 billion, mostly associated with commercial activities perpetuated by multinational enterprises.
In a statement issued in Lusaka on Thursday TI-Z Executive Director, Maurice Nyambe, commended the FIC for publishing the 2024 Trends Report.
Nyambe said in line with the recent study on risk factors for IFFs in Zambia, TI-Z identified the high use of cash transactions, mobile money fraud, and false invoicing aimed at justifying international transfers through the banking sector, among others.
He noted that the FIC analysed a total of 18,330 Susipicious Transactions Reports (STRs), reflecting a 16.8 percent increase from the 15,696 analysed in 2023.
Nyambe, however, expressed disappointment that the FIC analysed less STRs related to public sector corruption, resulting in the low number of disseminations on corruption as compared to cases relating to money laundering, fraud and tax evasion.
“TI-Z wishes to remind the FIC that public sector corruption is a dangerous vice, with serious economic and social consequences, and thus requiring greater attention,” he said.
Nyambe, however, commended the overall number of disseminated financial intelligence reports to the Law Enforcement Agencies (LEAs) and foreign competent authorities which increased from 923 in 2023 to 951 in 2024, representing a 3 percent increase.
Out of these cases, 10 related to corruption, an increase from 9 cases disseminated in 2023.
“The report also notes that feedback received from LEAs on disseminated reports indicates that 3 convictions and 7 non-conviction-based forfeitures were secured, resulting in get in touch with the forfeiture of assets valued at USD $26.5 million and K71.5 million in properties and cash,” he said.
Nyambe highlighted that the 2024 Trends Report also indicated that commercial banks continue to be the highest reporting entities, with 8,710 reports received in 2024, representing 96.9 percent of the total STRs.
“However, in 2024, Casinos filed 17 STRs as compared to none reported in 2023, on account of heightened awareness and enhanced supervision efforts by the FIC,” he said.
Nyambe called on the FIC to further increase its awareness activities and to enhance its supervision over law firms, accounting firms, real estate agents and dealers in precious stones and minerals, and trust and company service providers that did not submit any STRs to the FIC in 2024.
He added that the professional enablers posed a high risk for both public sector corruption and illicit financial flows and it was impossible that no suspicious activities were happening in these sectors, companies or institutions.
“TI-Z is conducting a comprehensive analysis of the 2024 Trends report and will issue a comprehensive follow-up media statement in due course,” Nyambe said.
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