Regulatory Framework and Money Laundering in Zambia
NAME: Wanga Maiwanga SIN: 10279819 TASK: Assignment 2 COURSE: Regulatory Framework COURSE CODE: BF 330 LECTURER: Dr. Habbazoka DUE DATE: 1st September 2011 1 CONTENTS
1 CONTENTS 1
2 INTRODUCTION 2
3 RULES RELATING TO MONEY LAUNDERING 3
3.1 Bank of Zambia Anti-money Laundering directives, 2004 part III to VII 3
3.2 Prohibition and Prevention of Money laundering Act, 2001 parts IV and V. 4
3.3 Anti-Money Laundering Authority (AMLA). 5
4 EXAMINING THE RULES RELATING TO MONEY LAUNDERING 5
5 CONCLUSION 6
6 REFERENCES 8
2 INTRODUCTION
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
1 CONTENTS 1
2 INTRODUCTION 2
3 RULES RELATING TO MONEY LAUNDERING 3
3.1 Bank of Zambia Anti-money Laundering directives, 2004 part III to VII 3
3.2 Prohibition and Prevention of Money laundering Act, 2001 parts IV and V. 4
3.3 Anti-Money Laundering Authority (AMLA). 5
4 EXAMINING THE RULES RELATING TO MONEY LAUNDERING 5
5 CONCLUSION 6
6 REFERENCES 8
2 INTRODUCTION
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
References: • Zambanker Journal , June 2011 • Bank Of Zambia Anti-Money Laundering Directives, 2004 • The Prohibition And Prevention Of Money Laundering Bill, 2001 • AML Around The World, FIU, The Zambian Case, Solomon Caleb Ngoma, 2010 • 010 www.acams.org A