2023 FIC Report Highlights Increased Capacity to Identify Illicit Financial Transactions in Zambia
Transparency International Zambia (TI-Z) has commended the Financial Intelligence Centre (FIC) for its significant progress in identifying illicit financial transactions, as highlighted in the 2023 FIC Trends Report.
The report indicates a substantial increase in the number of Suspicious Transactions Reports (STRs) analyzed, rising from 155 in 2022 to 15,696 in 2023. Additionally, the FIC disseminated 923 intelligence reports to law enforcement agencies (LEAs) in 2023, a marked increase from the 129 reports disseminated in 2022.
TI-Z Executive Director, Maurice K. Nyambe, noted that this improvement demonstrates the FIC’s enhanced capacity to identify and address illicit financial transactions, potentially marking a turning point in combating financial crimes if LEAs take decisive action.
The FIC attributes this progress to a special exercise conducted in the fourth quarter of 2023 aimed at reducing the backlog of STRs and identifying high-risk sectors.
The report also highlights concerns about the ongoing abuse of corporate vehicles, with beneficial ownership often obscured through various schemes such as the use of fronts and falsified documents.
The compliance barometer shows that 82% of accounting firms and 60% of law firms have either partially developed or not developed their compliance programs, in contrast to 96% of commercial banks that have developed compliance programs, albeit with some needing improvements.
TI-Z urges the FIC to continue enhancing compliance among professional enablers, such as law firms and accounting firms, to broaden the monitoring scope of illicit financial transactions.
Furthermore, TI-Z calls on LEAs to provide comprehensive, quantitative reports on the status of cases arising from STRs to demonstrate their effectiveness in addressing financial crimes.
Nyambe emphasized the importance of transparency and accountability, noting that while some disseminated cases have led to convictions and asset forfeitures, the public needs detailed statistics to evaluate the efficiency of LEAs.
TI-Z’s analysis of specific case studies from the 2023 report is ongoing, with a follow-up statement to be issued upon completion.
