Zambia's Financial Intelligence Centre Act, 2010 Explained: The FIC Act, the PPMLA and the Bank of Zambia's AML Directives

Short answer: Zambia's anti-money laundering duties sit mainly in the Financial Intelligence Centre Act, 2010, amended in 2016 and 2020. It established the Financial Intelligence Centre (FIC) and requires reporting entities to carry out due diligence, keep records for at least ten years, run a compliance programme and report suspicious and currency transactions within three working days. Money laundering is an offence under the Prohibition and Prevention of Money Laundering Act, 2001. Entities the Bank of Zambia licenses or designates also follow its 2017 AML Directives.

This guide is for compliance officers, boards and legal teams at Zambian banks, non-bank financial institutions, insurers, securities firms, virtual asset service providers (VASPs), casinos, law and accounting firms, estate agents, dealers in precious metals and stones, and accountable institutions. It is a practical guide, not legal advice. We found no consolidated text of the FIC Act, so this guide reads the 2010 Act with its 2016 and 2020 amendment Acts.

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The framework at a glance

We found no Zambian statute called the Anti-Money Laundering Act.

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The FIC Act and its amendments

The Act was assented to on 24 November 2010. Section 3(1) provides: "There is hereby established the Financial Intelligence Centre". It came into operation on a date set by statutory instrument, which we did not find; the FIC says: "The Centre became operational in September, 2013." The Act has 58 sections in five Parts. Reporting entities are defined in section 2, not listed in a schedule.

SI No. 53 and SI No. 54 of 2022, both signed on 29 July 2022 and published on 19 August 2022, replaced the 2016 regulations. We found no amendment to the Act since 2020.

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Who the Act covers

Since 2020 a reporting entity is "an institution required to make reports under this Act which is regulated by a supervisory authority, and includes a financial service provider, a designated non-financial business or profession or a virtual asset service provider".

• Financial service providers have the meaning in the Banking and Financial Services Act, 2017, and include VASPs.
• Designated non-financial businesses and professions include casino, gaming or gambling operators; trust or company service providers; lawyers, notaries and accountants for specified client transactions; estate agents; and dealers in precious metals or precious stones.
• Accountable institutions are a separate class: motor vehicle dealers, property development services providers, safe deposit or custody services providers, co-operative societies and travel agents. SI No. 54 of 2022 gives them due diligence, currency transaction reporting and record-keeping duties.

The 2020 amendment also replaced the definition of "politically exposed person" with "prominent influential person".

The supervisory authorities are the Bank of Zambia, the Pensions and Insurance Authority, the Securities and Exchange Commission, the casino licensing committee, the Registrar of Estate Agents, the Law Association of Zambia, the Zambia Institute of Chartered Accountants, the Chief Registrar of Lands and the FIC itself.

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Core duties

• Customer due diligence (s.16). At onboarding; for occasional transactions and wire transfers at or above the prescribed amounts; when earlier data is in doubt; and on suspicion. If it cannot be completed, do not proceed, and file a suspicious transaction report (STR).
• Risk assessment (s.19). A documented risk assessment and a risk-based approach, with new products and technologies assessed before launch. High-risk customers need senior-management approval, source-of-wealth and source-of-funds checks, and increased monitoring.
• Records (s.22). At least ten years.
• Compliance programme (s.23). Thirteen elements, including transaction monitoring systems and screening of customers against relevant sanctions lists. Agents are included.
• Compliance officer (s.23). At senior management level and "certified and approved by the Centre".
• Wire transfers (s.26). Transfers of USD 1,000 or more, or the equivalent, carry full originator and beneficiary information (SI No. 53 of 2022, reg. 6). The Bank of Zambia provides wire-transfer records to the FIC.

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Reporting duties

• Suspicious transactions (s.29). Not later than three working days after forming the suspicion, including attempted transactions; since 2020, also refrain from the transaction. See our STR guide.
• Currency transactions (s.30). Equal to or above the Kwacha equivalent of USD 10,000, single or linked, within three working days. See our CTR guide.
• Confidentiality. Tipping off is an offence (s.33); reporters' identities and good-faith reporters are protected (ss.34–35).
• Cross-border cash. Cash or bearer negotiable instruments above USD 5,000 must be declared (SI No. 53 of 2022, reg. 8).

In 2024 the FIC received 8,981 STRs and 377,808 CTRs. Its goAML portal, goaml.fic.gov.zm, is for electronic submission of reports: see our FIC goAML registration guide.

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The FIC's powers and the supervisors' role

The FIC is "the designated National Centre for receipt, from reporting entities, and analysis of suspicious transaction reports" (s.5(1)). Since 2020 it also supervises reporting entities that have no supervisory authority, or whose supervisor fails or neglects to enforce compliance. Its powers include:

• freezing an account or suspending a transaction for up to 15 days (s.10(3));
• inspections (s.11A), court monitoring orders that lapse after 90 days (s.37A), notices to comply (s.37B) and compliance orders with a further fine of up to 2,000 penalty units for each day (s.37C);
• instructions, directives, guidelines and rules (s.56). On 27 December 2023 the FIC used this power to direct commercial banks to notify it when they de-risk clients or services.

Supervisory authorities monitor compliance, compel information, impose sanctions and may publish directives "in consultation with the Centre" (s.36). Since 2020 they must give the FIC their inspection findings.

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Penalties

Directors and managers are liable for a company's offence unless they prove lack of knowledge or reasonable steps to prevent it (s.52). The FIC or a supervisory authority can also impose administrative sanctions, up to a financial penalty of one million penalty units, after 14 days' written notice (s.49C). This guide does not convert penalty units to Kwacha.

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The Prohibition and Prevention of Money Laundering Act, 2001

The PPMLA was "Assented to on 8 November 2001" and amended by Act No. 44 of 2010. It makes money laundering an offence, provides for seizure and forfeiture, and creates the Anti-Money Laundering Authority, a policy body chaired by the Attorney-General, and the Anti-Money Laundering Investigations Unit.

Since 2010 the offence covers anyone who knows or has reason to believe that property is the proceeds of a crime, or who without reasonable excuse fails to take reasonable steps to find out, and who deals with, converts or conceals it. The maximum is 170,000 penalty units, ten years, or both (s.7). A body corporate faces up to 400,000 penalty units (s.8), and a repeat offender at least five years or twice the fine, or both (s.24).

Before 2010 the PPMLA itself required supervisors to issue AML directives and regulated institutions to report suspicions to the Investigations Unit. Act No. 44 of 2010 left those preventive duties to the FIC Act.

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The Bank of Zambia's AML directives

The 2004 Directives: repealed

The Bank of Zambia Anti-Money Laundering Directives, 2004 were made under the PPMLA for "all banks and financial institutions operating in Zambia". They covered customer identification, ten-year records and suspicious-activity reports to the Investigations Unit. The document says "Issued by the Bank of Zambia this 19th day of August 2004"; the Bank's own listing dates them 01 June 2004.

The 2017 Directives: in force

The "Bank of Zambia Anti-Money Laundering and Combating the Financing of Terrorism or Proliferation Directives, 2017" were made under section 36(4) of the FIC Act, in consultation with the FIC. They apply to "all reporting entities licensed or designated by the Bank of Zambia", took effect on 30 June 2017, and repealed the 2004 Directives (Directive 17).

They deal with reporting; due diligence and records now sit in the FIC Act and SI No. 54 of 2022. They require STRs within three working days, including attempted transactions (Directive 5); a compliance officer's register of reports, and reasons to the Bank and the FIC within ten days if the compliance officer resigns or is dismissed (Directive 6); and an annual board compliance report to the Bank (Directive 9).

Breaching them is an offence carrying up to 700,000 penalty units, seven years, or both (Directive 15). For failing to submit STRs, the Bank's administrative sanctions include suspending a licence or an officer for up to six months, removal from office, and a fine of up to 700,000 penalty units (Directive 16). These numbers follow the document's body, not its arrangement list.

We found no Bank of Zambia instrument titled Banking and Financial Services (Anti-Money Laundering) Directives, and no newer AML directives as of 1 October 2026. The 2025 National Risk Assessment and the Bank's 2026 virtual-asset directives still cite the 2017 Directives.

Virtual assets

The Bank of Zambia Directives on Virtual Assets, 2026 (Gazette Notice No. 1439 of 2026, 18 September 2026) took effect on publication and give existing providers 12 months to apply for a licence. VASPs must comply with the PPMLA and the FIC Act, designate a senior officer to report suspected transactions, carry out due diligence before providing the service, and report STR statistics to the Bank monthly. Under the FIC's 2022 guidelines, VASPs also register with the FIC.

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Zambia's risk picture

Zambia's second National Risk Assessment, launched on 19 March 2026, found that "the national ML risk was medium", down from medium-high in 2016. Real estate, casinos, law firms and dealers in precious stones and metals are rated "High". Zambia was not on the FATF's increased-monitoring or call-for-action lists after the June 2026 plenary, and its next mutual evaluation begins in December 2027.

For software and filing, see our buyer's guide to AML compliance software in Zambia, our Zambia FIC goAML compliance guide and goAML reporting software for Zambia.

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FIC Act compliance checklist

1. Confirm whether you are a reporting entity, an accountable institution or a VASP, and who your supervisory authority is.
2. Document your risk assessment, and assess new products and technologies before launch.
3. Apply due diligence where section 16 requires it, and file an STR when it cannot be completed.
4. Run all thirteen programme elements, including transaction monitoring and sanctions screening.
5. Appoint a compliance officer at senior management level, approved by the FIC.
6. File STRs and CTRs within three working days.
7. Keep records for at least ten years.
8. If the Bank of Zambia licenses or designates you, apply its 2017 Directives too.

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Frequently asked questions

What is the Financial Intelligence Centre Act in Zambia?

The Financial Intelligence Centre Act, 2010 (Act No. 46 of 2010), amended in 2016 and 2020. It established the FIC and sets reporting entities' duties: due diligence, records, compliance programmes and reports.

Does Zambia have an Anti-Money Laundering Act?

We found no statute by that name. Money laundering is an offence under the Prohibition and Prevention of Money Laundering Act, 2001, and the preventive duties sit in the FIC Act.

Are the Bank of Zambia Anti-Money Laundering Directives 2004 still in force?

No. The 2017 Directives repealed them and took effect on 30 June 2017.

What is the penalty for money laundering in Zambia?

Up to 170,000 penalty units, ten years' imprisonment, or both, under section 7 of the PPMLA. A body corporate faces a fine of up to 400,000 penalty units.

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