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 framework, governed by the Anti-Corruption Act of 2012 and the National Anti-Corruption Policy of 2009, faces significant challenges in implementation due to limited capacity and corruption within government institutions. Although recent efforts have been made to strengthen legal frameworks and prosecute high-ranking officials, corruption remains pervasive, particularly in public procurement and law enforcement. The government's initiatives to enhance transparency and encourage ethical practices in private companies are ongoing, but the overall business environment continues to be hindered by rampant bribery and inefficiencies.

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 recovery of only 1.0 percent in 2021. The country is heavily reliant on its mining sector, which accounts for 77% of exports and 39% of government revenue, and ongoing debt issues hinder its growth potential. Recent reforms under President Hakainde Hichilema's administration have aimed to stabilize the economy and attract investment, particularly in mining and other sectors.

Zambia's investment climate has been hindered by a history of economic challenges, including a significant debt overhang and corruption, which have created barriers for private sector investment. However, under President Hakainde Hichilema's administration, there have been efforts to improve the investment environment through macroeconomic reforms, a new minerals tax policy aimed at attracting investment, and the establishment of forums for public-private dialogue. Despite these advancements, issues such as high costs of doing business, lack of transparency, and inadequate infrastructure continue to pose challenges for foreign investors.