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 are guided by the Anti-Corruption Act of 2012 and the National Anti-Corruption Policy of 2009, but implementation is hindered by limited capacity and suspected corruption within government institutions. Despite the establishment of a fast-track financial crimes court and the dismissal of several officials under the Hichilema administration, corruption remains pervasive, particularly in public procurement and law enforcement. The legal framework has seen improvements, yet enforcement is weak, and many corruption cases remain unresolved, impacting foreign investment and public trust.

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 a modest growth of 1.0 percent in 2021, largely due to a severe debt overhang and the impacts of the COVID-19 pandemic. The country is heavily reliant on its mining sector, which constitutes 77% of exports and 39% of government revenue, and while recent reforms under President Hakainde Hichilema have aimed to stabilize the economy and attract investment, issues such as high inflation, inadequate infrastructure, and regulatory unpredictability continue to hinder growth.

Zambia's investment climate has been hindered by a history of economic challenges, including a significant debt overhang and corruption, which have deterred foreign investment. However, under President Hakainde Hichilema, the government has made strides in improving the investment environment through macroeconomic reforms, including a new minerals tax policy aimed at attracting investment in the mining sector. Despite these efforts, issues such as bureaucratic inefficiencies, high costs of doing business, and a lack of skilled labor continue to pose challenges for potential investors.