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Regulatory Framework and Money Laundering in Zambia

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Regulatory Framework and Money Laundering in Zambia

Page 1 of 6
NAME: Wanga Maiwanga
SIN: 10279819
TASK: Assignment 2
COURSE: Regulatory Framework
COURSE CODE: BF 330
LECTURER: Dr. Habbazoka
DUE DATE: 1st September 2011

1CONTENTS

1CONTENTS1
2INTRODUCTION2
3RULES RELATING TO MONEY LAUNDERING3
3.1Bank of Zambia Anti-money Laundering directives, 2004 part III to VII3 3.2Prohibition and Prevention of Money laundering Act, 2001 parts IV and V.4 3.3Anti-Money Laundering Authority (AMLA).5

4EXAMINING THE RULES RELATING TO MONEY LAUNDERING5
5CONCLUSION6
6REFERENCES8

2INTRODUCTION

Money Laundering is the system where funds that illegally acquired or generated from criminal activities are brought in the normal money circulation to hide the tracks that it was illegally sourced. The word Launder is a word derived from the word laundry, i.e. to clean up. Money laundering activities involve generating funds from a wide range of criminal activities which include: •illegal drug trafficking,

prostitution,
extortion, robbery,
counterfeit currency issuing,
false accounting e.t.c
Money laundering has also known to further fund even worse crimes against humanity like that of terrorism and wars that intend to take over incumbent governments. In Zambia, Money laundering and other Financial crimes are enforced by the Anti-Money Laundering and Investigations Unit {AMLIU) of the Drug Enforcement Commission and the Anti-Corruption Commission (ACC) as well as the Ant-Frauds Department of the Zambia Police. Further, the government is intending to create yet another agency to fight financial crime called Financial Intelligence Unit (FIU).

Of course there a number of questions that arise as to why the government should create another agency. Before the FIU is created, a number of factors...