Zambia Country Summary

FATF Status

Zambia is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The latest follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Zambia was undertaken in 2024 . According to that Evaluation, Zambia was deemed Compliant for 12 and Largely Compliant for 18 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Zambia's anti-corruption efforts, governed by the Anti-Corruption Act of 2012 and the National Anti-Corruption Policy of 2009, face significant challenges in implementation due to limited capacity and corruption within government institutions. Despite the establishment of a fast-track financial crimes court and recent efforts by the Hichilema administration to prosecute corruption cases, many remain unresolved, and corruption continues to affect public services. Additionally, issues such as human trafficking, counterfeit goods, and illegal logging highlight the broader challenges of organized crime and governance in Zambia.

Zambia's economy, with a GDP of $22.15 billion in 2021, has faced significant challenges, including a contraction of 3.0 percent in 2020 and slow growth of just 1.0 percent in 2021, largely due to a debt overhang and the impact of the COVID-19 pandemic. The economy is heavily reliant on the mining sector, which accounts for 77% of exports and 39% of government revenue, while ongoing reforms under President Hakainde Hichilema aim to improve the investment climate and stimulate growth.

Zambia's investment climate has been significantly impacted by a history of economic challenges, including a debt overhang that restricts access to international capital markets. Recent reforms under President Hakainde Hichilema, including a new minerals tax policy aimed at attracting investment, have shown promise, yet persistent issues such as corruption, high costs of doing business, and regulatory unpredictability continue to hinder foreign direct investment. The government is committed to improving the investment environment through initiatives like the Public Private Dialogue Forum and the Private Sector Development Reform Program.