Financial Intelligence Centre (Amendment) [No.

16 of 2020 261

GOVERNMENT OF ZAMBIA

ACT
No. 16 of 2020

Date of Assent: 11th December, 2020

An Act to amend the Financial Intelligence Centre
Act, 2010.
[15th December, 2020
ENACTED by the Parliament of Zambia. Enactment
1. This Act may be cited as the Financial Intelligence Centre Short title
(Amendment) Act, 2020, and shall be read as one with the Financial Act No. 46 of
2010
Intelligence Centre Act, 2010, in this Act referred to as the principal
Act.
2. Section 2 of the principal Act is amended by the— Amendment
of section 2
(a) deletion of the definition of “close associate”, “high risk
customers”, and “immediate family member”;
(b) deletion of the definitions of “currency”, “designated non-
financial business and profession”, “law enforcement
agency”, “politically exposed person”, “reporting entity”,
“supervisory authority”, “suspicious transactions report”
and the substitution therefor of the following:
“ currency ” means the legal tender of the Republic or of a
foreign country that is customarily used and accepted as a
medium of exchange and may be represented in coin, paper,
electronic or virtual form;
“ law enforcement agency ” means—
(a) the Zambia Police Service, established under the
Constitution; Cap. 1

Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K56.00 each.
 262 No. 16 of 2020] Financial Intelligence Centre (Amendment)

(b) the National Anti -Terrorism Centre established under

Act No. 6 of theAnti-Terrorism and Non -ProliferationAct, 2018;
2018
(c) the Immigration Department established under the
Act No. 18 of Immigration and Deportation Act, 2010;
2010
(d) the Drug Enforcement Commission, established under
Cap. 1 the Constitution;
(e) the Anti-Money Laundering Investigations Unit
Act No. 14 established under the Prohibition and Prevention
of 2001 of Money Laundering Act, 2001;
(f) the Anti-Corruption Commission established under
Cap. 1 the Constitution;
(g) the Zambia Revenue Authority established under
Cap. 321 the Zambia Revenue Authority Act; and
(h) any other investigative institution that the Minister
may, on the recommendation of the Centre,
prescribe;
“ prominent influential person ” means—
(a) an individual who is or has, been entrusted with a
prominent public function by a State or an
international or local body or organisation but is
not of middle or junior ranking and includes—
(i) a head of State or of Government;
(ii) a minister;
(iii) a member of an executive organ of a
political party;
(iv) a magistrate, judge and other senior
officials of quasi judicial bodies;
(v) a senior military official;
(vi) a senior government official; and
(vii) a member of the board or an official in
senior management of an administrative or
supervisory body, or a state owned enterprise
or statutory body;
Financial Intelligence Centre (Amendment) [No. 16 of 2020 263

(b) an immediate family member of an individual under

paragraph (a) and includes—
(i) a spouse;
(ii) a sibling;
(iii) children and their spouses; and
(iv) parents; and
(c) a known close associate of an individual under
paragraph (a) and includes—
(i) any individual who is known to have joint
beneficial ownership or control of a legal
entity or legal arrangement, or any other close
business relationship, with an individual
referred to in paragraph (a);
(ii) any individual who has sole beneficial
ownership or control of a legal entity or legal
arrangement which is known to have been
set up for the benefit of an individual referred
to in subparagraph (a); and
(iii) any individual who is closely connected to
an individual referred to under paragraph (a),
either socially or professionally;
“ reporting entity ” means 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;
“ supervisory authority ” means—
(a) the Bank of Zambia established under the
Constitution; Cap. 1

(b) the Pensions and Insurance Authority established

under the Pension Scheme Regulation Act, 1996; Act No. 28
of 1996
(c) the Securities and Exchange Commission established
under the Securities Act, 2016; Act No. 41
of 2016
(d) the licensing committee established under the Tourism Act No. 13
and Hospitality Act, 2015; of 2015
 264 No. 16 of 2020] Financial Intelligence Centre (Amendment)
(e) the Registrar of Estate Agents appointed under the
Act No. 21 Estate Agents Act, 2000;
of 2000
(f) the Law Association of Zambia established under
Cap. 31 the Law Association of Zambia Act;
(g) the Zambia Institute of Chartered Accountants
Act No. 13 established under the Accountants Act, 2008;
of 2008
(h) the Centre;
(i) Chief Registrar of Lands appointed under the Lands
Cap. 185 and Deeds Registry Act;
(j) any other authority established under any written law
as a supervisory authority; and
(k) an authority that the Minister may prescribe; and
“ suspicious transaction report ” means a report submitted on
suspected or attempted money laundering, financing of
terrorism or proliferation or any other serious offence
whether in form of a data message or otherwise; and
(c) insertion of the following new definitions in the appropriate
places in alphabetical order:
“accountable institution” includes—
(a) a motor vehicle dealer;
(b) a property development services provider;
(c) a safe deposit or custody services provider;
(d) a cooperative society;
(e) a travel agent; and
(g) any other institution that the Minister may prescribe,
on the recommendation of the Centre;
“ citizen ” has the meaning assigned to the word in the
Cap.1 Constitution;
“ competent authority ” includes—
(a) a law enforcement agency;
(b) a supervisory authority;
(c) the National Prosecution Authority established under
Act No. 34 the National Prosecutions Authority Act, 2010;
of 2010
(d) the Patents and Companies Registration Agency
Act No. of established under the Patents and Companies
2020 Registration Agency Act, 2020;
Financial Intelligence Centre (Amendment) [No. 16 of 2020 265

(e) the Commissioner of Lands;

(f) the Zambia Development Agency established under
the Zambia Development Agency Act, 2006; Act No. 1 of
2006
(g) the Registrar of co-operatives appointed under the
Co-operatives Act, 1998; Act No. 24
of 1998
(h) the Registrar of Societies appointed under the
Societies Act; Cap. 119

(i) the Registrar of Non-Governmental Organisations

appointed under the Non-Governmental Act No. 16 of
Organisations Act, 2009; 2009

(j) the Zambia Security Intelligence Service established

under the Zambia Security Intelligence Act; Cap. 109
(k) a designated foreign authority; and
(l) any other authority that the Minister may prescribe,
on the recommendation of the Centre;
“ designated non-financial business or profession ” includes—
(a) a casino, gaming or gambling operator;
(b) a trust or company service provider which, as a
business, provides any of the following services
to third parties:
(i) acting as an agent for the establishment of
legal persons;
(ii) acting as, or arranging for another person
to act as a director or secretary of a
company, a partner in a partnership or a
similar position in relation to other legal
persons;
(iii) providing a registered office, business
address or accommodation, correspondence
or administrative address for a company, a
partnership or any other legal person or
arrangement;
(iv) acting as, or arranging for another person
to act as, a trustee of an express trust; or
(v) acting as, or arranging for another person
to act as, a nominee shareholder for another
person;
 266 No. 16 of 2020] Financial Intelligence Centre (Amendment)

(c) a legal practitioner, notary, other independent legal

professional and accountant when they prepare
for, or carry out, a transaction for a client oncerning
the following activities:
(i) buying and selling of real estate;
(ii) managing of client money,securities or other
assets;
(iii) management of bank, savings or
securitiesaccounts on behalf of clients;
(iv) organisation of contributions for the creation,
operation or management of companies; or
(v) creation, operation or management of legal
persons or arrangements, and buying and
selling of business entities;
(d) an estate agent dealing in real estate, involved in a
transaction for a client concerning the letting,
buying and selling of real estate;
(e) a dealer in precious metals;
(f) a dealer in precious stones; and
(g) any other business or profession in which the risk of
money laundering and financing of terrorism or
proliferation or any other serious offence exists as
the Minister may, on the recommendation of the
Centre, prescribe;
“ director ” has the meaning assigned to the word in the
Act No. 10 Companies Act, 2017;
of 2017
“ financial service provider ” has the meaning assigned to the
Act No. 7 of words in the Banking and Financial Services Act, 2017
2017 and includes a virtual asset service provider;
“ intermediary institution ” means an institution which
participates in a transfer of funds that takes place through
more than one institution but is not an ordering institution
or a beneficiary institution;
“ precious metal ” has the meaning assigned to the words in
Act No. 11 of the Mines and Minerals Development Act, 2015;
2015
 Financial Intelligence Centre (Amendment) [No. 16 of 2020 267

“ proliferation financing ” has the meaning assigned to the

words in the Anti-Terrorism and Non-Proliferation Act, Act No. 6 of
2018; 2018

“ senior management ” means the executive committee or

management team comprising a core group of individuals
who are responsible and accountable for effective
management of a reporting entity and includes board of
directors;
“ terrorism ” has the meaning assigned to the word in the
Anti-Terrorism and Non-Proliferation Act, 2018; Act No. 6 of
2018
“ virtual asset ” means convertible virtual asset such as crypto
currency or other digital means of exchange where the
virtual asset is accepted by a person as a means payment
for goods or services, a unit of account, a store of value or
a commodity; and
“ virtual asset service provider ” means any person who as a
business conducts one or more of the following activities
or operations for or on behalf of another person:
(a) exchange between virtual assets and fiat currencies;
(b) exchange between one or more forms of virtual
assets;
(c) transfer of virtual assets;
(d) safekeeping and administration of virtual assets
instruments enabling control over virtual assets;
(e) participation in and provision of financial services
related to an issuer’s offer and sale of a virtual
asset; and
(f) provision of intermediary services for the buying and
selling of virtual assets, including through the use
of virtual asset vending machine facilities.
3. The principal Act is amended by the repeal of section 5 and Repeal and
the substitution therefor of the following: replacement
of section 5
5. (1) The Centre is the designated National Centre for receipt, Functions of
from reporting entities, and analysis of suspicious transaction reports, Centre
and any other information relevant to money laundering, and terrorism
or proliferation financing and serious offences relating to money
laundering, and terrorism or proliferation, including information from
designated foreign authorities, made to the Centre under this Act or
any other written law and for the dissemination of the results of
that analysis.
268 No. 16 of 2020] Financial Intelligence Centre (Amendment)

(2) Despite the generality of subsection (1), the functions of

the Centre are to—
(a) receive, request, analyse and evaluate suspicious
transaction reports and information from any other source
authorised under any written law to make a suspicious
transaction report including a designated foreign authority
to determine whether there are reasonable grounds to
transmit reports for investigation by law enforcement
agencies or designated foreign authorities;
(b) disseminate information, spontaneously or on request, to
law enforcement agencies and other competent
authorities, where there are reasonable grounds to
suspect money laundering or financing of terrorism or
proliferation;
(c) provide information relating to suspicious transactions to
any designated foreign authority, subject to conditions
that the Director-General may determine, in accordance
with this Act;
(d) conduct strategic analysis to identify related trends and
patterns relating to money laundering, financing of
terrorism or proliferation or any other serious offence
related to money laundering, financing of terrorism or
proliferation;
(e) provide information, advice and assistance to law
enforcement agencies in furtherance of an investigation;
(f)educate the public and reporting entities of their obligations
and inform them of measures to detect, prevent and deter
money laundering, financing of terrorism or proliferation
or any other serious offence relating to money laundering,
financing of terrorism or proliferation;
(g) provide information to supervisory bodies, law enforcement
agencies and any other competent authority to facilitate
law enforcement for prevention of money laundering,
financing of terrorism or proliferation or any other serious
offence related to money laundering, financing of
terrorism or proliferation;
(h) ensure compliance by reporting entities with this Act,
Regulations, directives, determinations, notices and
circulars issued by the Centre or supervisory authorities;
 Financial Intelligence Centre (Amendment) [No. 16 of 2020 269

(i) give guidance to reporting entities to combat money

laundering, financing of terrorism or proliferation
activities or any other serious offence related to money
laundering, financing of terrorism or proliferation on a
risk sensitive basis; and
(j)facilitate effective risk based supervision and enforcement
of this Act by supervisory authorities.
(3) The Centre may, in performing its functions under this Act—
(a) cooperate and exchange information with, or enter into
any agreement or arrangement, in writing with a
supervisory authority or designated foreign authority, law
enforcement agency, competent authority or designated
foreign authority as the Centre considers necessary or
desirable for the performance of its functions under this
Act;
(b) conduct inquiries related to suspicious transactions on behalf
of foreign designated authorities and notify them of the
outcome;
(c) access, directly or indirectly, on a timely basis, financial,
administrative and law enforcement information required
for the better carrying out of its functions under this
Act;
(d) consult with any relevant person, legal person or legal
arrangement for the purpose of exercising its functions
under the Act;
(e) request information and statistics from a supervisory
authority, law enforcement agency, public body, regulatory
agency, person or legal arrangement for purposes of this
Act or any other written law, where the information is
required for the discharge of its functions under this Act
or for purposes of the Act;
(f)request a law enforcement agency or competent authority
to report progress and outcomes on a matter referred to
it by the Centre;
(g) in consultation with a supervisory authority, where applicable,
cause an inspection to be made by an officer authorised
by the Director-General in writing;
(h) provide a law enforcement agency or supervisory authority
with information derived from an inspection carried out
under paragraph (g) if there are reasonable grounds to
suspect that a transaction involves money laundering,
financing of terrorism or proliferation or any other serious
offence;
 270 No. 16 of 2020] Financial Intelligence Centre (Amendment)

(i) collaborate and coordinate with relevant competent

authorities on risk based supervision or monitoring of
non-governmental organisations for compliance with the
requirements relating to countering financing of
terrorism or proliferation or any other serious offence ;
and
(j) supervise and enforce compliance with this Act by
reporting entities that are—
(i) not regulated or supervised by a supervisory
authority in terms of this Act or any other
written law; or
(ii) regulated or supervised by a supervisory authority
in terms of this Act or any other written law, if
that supervisory authority fails or neglects to
enforce compliance.
(4) An officer authorised to conduct an inspection under
subsection (3)(g) may exercise the powers of an inspector provided
for under section 11B.
Amendment 4. Section 11 (1) of the principal Act is amended by the
of section 11
deletion of the words “as it may determine” and the substitution
therefor of the words “that the Board may determine”.
Repeal and 5. The principal Act is amended by the repeal of section 16
replacement
of section 16 and the substitution therefor of the following:
Customer 16. (1) A reporting entity shall identify its customers
identification
requirements and verify its customers’ identities by means of reliable and
independent source documents, data or information, when—
(a) opening an account for, or otherwise establishing a
business relationship with a customer;
(b) a customer, who is neither an account holder nor in
an established business relationship with a financial
service provider, wishes to carry out a transaction
in an amount equal to, or above, a prescribed
amount whether conducted as a single transaction
or several transactions that appear to be linked,
except that if the amount of the transaction is
unknown, the customer’s identification shall be
verified as soon as the amount of the transaction
has reached the prescribed amount;
 Financial Intelligence Centre (Amendment) [No. 16 of 2020 271

(c) despite paragraph (b), the customer wishes to carry

out a domestic or international wire transfer of
monetary amounts in the amount equal to, or above,
the prescribed amount;
(d) doubts exist about the veracity or adequacy of
previously obtained customer identification
information; or
(e) there is a suspicion of money laundering, financing
of terrorism or proliferation or any other serious
offence relating to money laundering, financing of
terrorism or proliferation involving the customer
or that customer’s account.
(2) A reporting entity shall identify and verify the identity of
each customer, and obtain other information required by this section
before it establishes an account or a business relationship, or before
it carries on further business, if it suspects money laundering,
financing of terrorism or proliferation or any other serious offence
relating to money laundering, financing of terrorism or proliferation
or doubts the veracity or adequacy of previously obtained customer
identification information.
(3) The Minister may, prescribe the circumstances in which
the verification of identity may be completed as soon as reasonably
practicable after the commencement of the business if—
(a) the risk of money laundering, financing of terrorism or
proliferation or any other serious offence relating to
money laundering, financing of terrorism or proliferation
is effectively managed; and
(b) a delay in verification is essential not to interrupt the normal
conduct of business.
(4) A reporting entity shall, with respect to each customer,
obtain and verify, as part of its obligation under subsection (1)—
(a) for a natural person, the full name and physical address,
and date and place of birth or a mobile number linked
to a registered international mobile equipment identity
number or sim card in place of a physical address;
(b) for a legal person, the corporate name, head office address,
identities of directors, proof of incorporation or similar
evidence of legal status and legal form, provisions
governing the authority to bind the legal person, and
information that is necessary to understand the
ownership and control of the legal person; or
272 No. 16 of 2020] Financial Intelligence Centre (Amendment)

(c) for legal arrangements, the name, legal form and proof of
existence, the address of the registered office or the
principal place of business, the powers that regulate and
bind the arrangement, the identity of the settlor, the
trustee, the protector, where applicable, the beneficiaries
or class of beneficiaries, and any other natural person
exercising ultimate effective control over the trust,
including through a chain of control or ownership, and
any other parties with authority to manage, vary or
otherwise control the arrangement;
(d) in addition to the identity of a customer, the identity of
any person acting on behalf of the customer, including
evidence that the person is properly authorised to act in
that capacity;
(e) information on the intended purpose and nature of each
business relationship; and
(f) sufficient information about the nature and business of
the customer to permit the reporting entity to fulfill its
obligations under this Act.
(5) A governing body of a trust shall, with respect to each
trust—
(a) obtain and hold adequate, accurate, and current
information on the identity of the settlor, the trustee, the
protector, if any, the beneficiaries or class of beneficiaries,
and any other natural person exercising ultimate effective
control over the trust; and
(b) obtain and hold basic adequate, accurate, and current
information on other regulated agents of, and service
providers to, the trust, including investment advisors or
managers, accountants, and tax advisors.
(6) A reporting entity shall, as part of its obligations under
subsections (1) and (4)—
(a) understand the purpose and intended nature of the business
relationship; and
(b) identify the beneficial owner and take reasonable measures
that are necessary to verify the identity of the beneficial
owner, except that the Minister may prescribe the
circumstances, such as the ownership of publicly held
corporations, in which that identification and verification
is not necessary.
 Financial Intelligence Centre (Amendment) [No. 16 of 2020 273

(7) In addition to subsections (1) and (4), an insurance company

shall take the following measures on the beneficiary of life insurance
and other investment related insurance policies, as soon as the
beneficiary is identified or designated:
(a) for a beneficiary that is identified as specifically named
natural or legal persons or legal arrangements, by taking
the name of the person; or
(b) for a beneficiary that is designated by characteristics or
by class or by other means, obtaining sufficient
information concerning the beneficiary to satisfy the
reporting entity that it will be able to establish the identity
of the beneficiary at the time of the payout except that—
(i) the verification of the identity of the beneficiary
shall occur at the time of the payout;
(ii) the insurance company shall include the
beneficiary of a life insurance policy as a
relevant risk factor in determining whether on
going due diligence is applicable; and
(iii) if the insurance company determines that a
beneficiary who is a legal person or a legal
arrangement presents a higher risk, it shall take
enhanced measures which should include
reasonable measures to identify and verify the
identity of the beneficial owner of the
beneficiary, at the time of payout.
(8) A reporting entity shall apply the identification and
verification requirements stipulated under subsections (1) and (4)
to customers and beneficial owners with which it has a business
relationship on the basis of materiality and risk, at appropriate times,
depending on the type and nature of the customer, business
relationship, product or transactions, or as may otherwise be
prescribed.
(9) Where a reporting entity is unable to comply with the
customer due diligence requirements under this section, it shall not
open the account, commence business relations or perform the
transaction, and where appropriate, it shall terminate the business
relationship, and shall make a suspicious transactions report in
relation to the customer.
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(10) Where a reporting entity forms a suspicion of money

laundering or financing of terrorism or proliferation or any other
serious offence and it reasonably believes that conducting customer
identification and verification requirements shall tip off the customer,
it shall not conduct customer identification and verification, and
instead shall file a suspicious transaction report under this Act.
(11) For the purposes of this Part, “independent source document
or information” means a passport, a driver’s licence, a national
identification document or a certified certificate of incorporation or
other information that the Minister may prescribe.
Amendment 6. Section 17 of the principal Act is amended by the insertion
of section of the following new subsection immediately after subsection (4):
17
(5) Where the third party is part of the same financial
group, the home and host competent authorities shall satisfy
themselves that the requirements in subsection (1) are met in
the following circumstances:
(a) the group applies same or stricter customer due
diligence and record keeping, and internal control
requirements against money laundering and
financing of terrorism or proliferation or any other
serious offence relating to money laundering,
financing of terrorism or proliferation;
(b) the implementation of those customer due diligence,
record keeping requirements and programmes to
counter money laundering and financing of
terrorism or proliferation or any other serious
offence relating to money laundering, financing of
terrorism or proliferation is supervised at a group
level by a competent authority; and
(c) any higher national risk is adequately mitigated by
the group’s anti-money laundering or combating
financing of terrorism or proliferation or any other
serious offence relating to money laundering,
financing of terrorism or proliferation.
Repeal and 7. The principal Act is amended by the repeal of section 19
replacement and the substitution therefor of the following:
of section 19
Risk 19. (1) A reporting entity shall identify, assess, and
management understand the money laundering and financing of terrorism
or proliferation or any other serious offence relating to money
laundering, financing of terrorism or proliferation risks with
regard to its products, services, delivery channels and its
customers, geographical locations and country risk.
Financial Intelligence Centre (Amendment) [No. 16 of 2020 275

(2) A reporting entity shall, based on the assessment in

subsection (1), apply a risk based approach to ensure that
measures to prevent or mitigate money laundering and
financing of terrorism or proliferation or any other serious
offence relating to money laundering, financing of terrorism
or proliferation are commensurate with the risks identified.
(3) A reporting entity shall, in relation to subsection (1)—
(a) prior to the launch or use of a new product and new
business practices, including a new delivery
mechanism, and the use of a new or developing
technology for both new and pre existing products,
identify, assess, manage and mitigate the risks that
may arise in relation to the development and use
thereof;
(b) document its risk assessments;
(c) consider all the relevant risk factors before
determining the level of overall risk and the
appropriate level and type of mitigation to be
applied; and
(d) keep the assessments up to date.
(4) Where a reporting entity identifies customers whose
activities may pose a high risk of money laundering and
financing of terrorism or proliferation or any other serious
offence relating to money laundering, financing of terrorism
or proliferation, the reporting entity shall exercise enhanced
identification, verification and ongoing due diligence
procedures with respect to those customers and shall—
(a) obtain approval from senior management of the
reporting entity before establishing a business
relationship with the customer, or later, as soon as
an existing customer is identified as a high risk
customer;
(b) take all reasonable measures to verify the source of
wealth and funds and other assets of the customer;
(c) provide increased and ongoing monitoring of the
customer and the business relationship to prevent
money laundering, financing of terrorism or
proliferation or the commission of any other
serious offence related to money laundering,
financing of terrorism or proliferation and to permit
the reporting entity to fulfil its obligations under
this Act, including all of its due diligence and
reporting requirements;
 276 No. 16 of 2020] Financial Intelligence Centre (Amendment)

(d) take reasonable measures to determine whether

the beneficiary of a life insurance policy or, where
the beneficiary is not a natural person, the
beneficial owner of the beneficiary is a prominent
influential person before a payout is made; and
(e) where higher risks are determined, inform senior
management before the payout of the policy
proceeds is made, conduct enhanced scrutiny of
the entire business relationship and consider
submitting a suspicious transaction report.
(5) Where the reporting entity identifies lower risks in
relation to its products, services, delivery channels and its
customers or geographical locations, the reporting entity may
allow simplified measures for customer due diligence.
(6) Where the reporting entity identifies higher risks in
relation to its products, services, delivery channels and its
customers or geographical locations, the reporting entity shall
undertake enhanced customer due diligence measures.
(7) A reporting entity shall—
(a) apply risk based counter- measures against any
country when called on to do so by the Centre or
any duly delegated competent authority, as
communicated from time to time; and
(b) apply enhanced due diligence, proportionate to the
risks, to business relationships and customer
transactions with natural or legal persons,
including financial service providers, from countries
which have been designated as high risk by the
Centre or any competent authority, as
communicated from time to time.
Amendment 8. Section 22 of the principal Act is amended by the deletion
of section 22 of subsection (1) and the substitution therefor of the following:
(1) A reporting entity shall maintain all the books and
records with respect to its customers and transactions set
out in subsection (2), and shall ensure that those records and
underlying information are available on a timely basis to the
Centre, supervising authority, law enforcement agency or
other competent authority.
 Financial Intelligence Centre (Amendment) [No. 16 of 2020 277

9. The principal Act is amended by the repeal of section 23 Repeal and

and the substitution therefor of the following: replacement
of section
23

23. (1) A reporting entity shall develop and implement Internal

programmes
programmes for the prevention of money laundering, financing to combat
of terrorism or proliferation or any other serious offence money
relating to money laundering, financing of terrorism or laundering,
financing of
proliferation. terrorism or
proliferation
(2) A programme under subsection (1) shall include— and other
serious
(a) internal policies, procedures and controls to fulfil offence
obligations under this Act;
(b) adequate screening procedures to ensure high
standards when hiring employees;
(c) ongoing training for officers and employees to make
them aware of the laws relating to money
laundering, the financing of terrorism or
proliferation or any other serious offence relating
to money laundering, financing of terrorism or
proliferation, to assist them in recognising
transactions and actions that may be linked to
money laundering, financing of terrorism or
proliferation or any other serious offence relating
to money laundering, financing of terrorism or
proliferation and instruct them in the procedures
to be followed in those cases;
(d) policies and procedures to prevent the misuse of
technological developments including those related
to electronic means of storing and transferring
funds or value;
(e) mechanisms for preventing money laundering,
financing of terrorism or proliferation, or any other
serious offence;
(f) independent audit arrangements to review and verify
compliance with and effectiveness of the measures
taken in accordance with this Act;
(g) risk based approach in implementing the
requirements under this Act;
278 No. 16 of 2020] Financial Intelligence Centre (Amendment)
(h) customer identification procedures;
(i) record keeping and retention;
(j) reporting procedures;
(k) confidentiality requirements and procedures;
(l) transaction monitoring systems; and
(m) adequate screening procedures for customers against
relevant sanctions lists.
(3) A reporting entity shall designate a compliance officer
at senior management level to be responsible for the
implementation of, and ongoing compliance with this Act by
that reporting entity.
(4) A person shall not be designated as a compliance
officer unless that person—
(a) has two years’ experience in the field of regulatory
compliance;
(b) is not convicted of an offence under this Act or any
other written law and sentenced to a term of
imprisonment of not less than six months without
the option of a fine; and
(c) is certified and approved by the Centre.
(5) A compliance officer designated under subsection (3)
shall access all the books, records and employees of the
reporting entity necessary to fulfil the responsibilities specified
under this Act.
(6) The Centre may disapprove the designation of a
compliance officer on grounds relating to—
(a) misconduct in relation to the responsibility of the
compliance officer under this Act;
(b) the conviction of a person for an offence under this
Act or any other relevant written law for which
that person is sentenced to a term of imprisonment
of not less than six months without the option of a
fine; and
(c) inability or unfitness to perform the functions of a
compliance officer under this Act.
 Financial Intelligence Centre (Amendment) [No. 16 of 2020 279

(7) The Minister may prescribe the type and extent of

measures that reporting entities shall undertake with respect
to each of the requirements under this section having regard
to the risk of money laundering, financing of terrorism or
proliferation or any other serious offence relating to money
laundering, financing of terrorism or proliferation and the size
of the business or profession.
(8) A reporting entity that uses an agent to provide its
services shall include the agent in the programme under
subsection (2) and shall monitor the agent for compliance with
that programme.
10. The principal Act is amended by the repeal of section 24 Repeal and
and the substitution therefor of the following: replacement
of section 24
24. A reporting entity shall exercise ongoing due diligence Ongoing due
using a risk based approach with respect to a business diligence
relationship with a customer which includes—
(a) scrutinising transactions undertaken throughout the
course of that relationship to ensure that the
transactions being conducted are consistent with
the financial service provider’s knowledge of the
customer, their business and risk profile, including
where necessary, the source of funds;
(b) maintaining current and accurate information and
records relating to the customer or beneficial
owner; and
(c) ensuring the obligations under sections 19 and 20
relating to risk management and correspondent
banking relationship are fulfilled.
11. The principal Act is amended by the repeal of section 26 Repeal and
replacement
and the substitution therefor of the following: of section 26
26. (1) A financial service provider undertaking a wire Obligations
transfer equal to, or above, a prescribed threshold shall— regarding
wire
(a) identify and verify the identity of the originator; transfers

(b) obtain and maintain information on the identity of the

beneficiary;
(c) obtain and maintain the account number of the
originator and beneficiary, or in the absence of an
account number, a unique reference number;
280 No. 16 of 2020] Financial Intelligence Centre (Amendment)
(d) obtain and maintain the originator’s address or, in
the absence of address, the national identity
number, or date and place of birth; and
(e) include information from paragraphs (a) to (c) in
the message or payment form accompanying the
transfer.
(2) Despite the requirements of subsection (1), a financial
service provider is not required to verify the identity of a
customer with which that financial service provider has an
existing business relationship and where the financial service
provider is satisfied that it already knows and has verified
the true identity of the customer.
(3) Where a financial service provider acts as an
intermediary in a chain of payments, it shall retransmit all of
the information it received with the wire transfer and any
other information that may be necessary to identify the
originator and beneficiary.
(4) Where several individual cross border wire transfers
from a single originator are bundled in a batch file for
transmission to beneficiaries, the batch file should contain
required and accurate originator information, and full
beneficiary information, that is fully traceable within the
beneficiary country, and the financial service provider shall
include the originator’s account number or unique transaction
reference number.
(5) Where the information accompanying the domestic
wire transfer can be made available to the beneficiary
financial service provider and appropriate authorities by other
means the —
(a) ordering financial service provider shall include the
account number or a unique transaction reference
number, except that this number or unique
transaction reference number will permit the
transaction to be traced back to the originator or
the beneficiary;
(b) ordering financial service provider shall make the
information available within three business days
of receiving the request either from the beneficiary
financial service provider or from the Centre or
supervisory authority; and
(c) law enforcement agencies shall compel immediate
production of that information where required.
Financial Intelligence Centre (Amendment) [No. 16 of 2020 281
(6) Where the required originator or beneficiary
information accompanying a cross border wire transfer does
not remain with a related domestic wire transfer, the
intermediary financial service provider shall keep a record,
for at least ten years, of all the information received from the
ordering financial service provider or another intermediary
financial service provider.
(7) An intermediary financial service provider shall
develop and implement risk based policies and procedures
for determining—
(a) when to execute, reject, or suspend a wire transfer
lacking required originator or required beneficiary
information; and
(b) the appropriate follow up action.
(8) A beneficiary financial service provider shall take
reasonable measures, including, where feasible, post event
monitoring or real time monitoring to identify cross border
wire transfers that lack required originator information or
required beneficiary information.
(9) A beneficiary financial service provider shall develop
and implement risk based policies and procedures for
determining—
(a) when to execute, reject, or suspend a wire transfer
lacking required originator or required beneficiary
information; and
(b) the appropriate follow up action.
(10) A money or value transfer service provider shall, in
the case of a money or value transfer service provider that
controls both the ordering and the beneficiary side of a wire
transfer—
(a) take into account all the information from both the
ordering and beneficiary sides in order to determine
whether the wire transfer has to be reported; and
(b) submit a suspicious transaction report in any country
affected by the suspicious wire transfer, and make
relevant transaction information available to the
Centre.
 282 No. 16 of 2020] Financial Intelligence Centre (Amendment)

(11) The Minister may, on the recommendation of the

Centre, by statutory instrument, modify the requirements set
out in subsection (1)—
(a) with respect to domestic wire transfers, as long as
the regulations provide for full originator
information to be made available to the beneficiary
financial service provider and appropriate
authorities by other means; and
(b) with respect to cross border transfers where
individual transfers from a single originator are
bundled in a batch file, as long as the regulations
provide for the originator’s account number or
unique reference number to be included, and that
the batch file contains full originator information
that is fully traceable in the recipient country.
(12) Subsections (1) and (2) do not apply to transfers
executed as a result of credit card or debit card transactions
or to transfers between financial service providers acting for
their own account, except that the credit card or debit card
number accompanies the transfer resulting from the
transaction.
(13) Where a financial service provider under subsection
(1) receives wire transfers that do not contain the complete
originator information required under that subsection, that
financial service provider shall take measures to obtain and
verify the missing information from the ordering institution or
the beneficiary.
(14) A financial service provider shall, where it fails to
obtain any missing information, refuse acceptance of the
transfer and report the transfer to the Centre.
(15) The Bank of Zambia shall provide wire transfer
records to the Centre.
Repeal and 12. The principal Act is amended by the repeal of section 27
replacement and the substitution therefor of the following:
of section 27
Compliance 27. (1) A reporting entity shall require its foreign branches
with and majority owned subsidiaries to implement the requirements
obligations
by foreign of this Part to the extent that domestic applicable laws of the
subsidiaries host country so permit.
and branches
Financial Intelligence Centre (Amendment) [No. 16 of 2020 283

(2) A reporting entity shall, where the laws of the country

where its branch or majority owned subsidiary is situated
prevent compliance with the obligations stipulated under this
Part, advise its supervisory authority, which may take steps
that it believes to be appropriate to accomplish the purposes
of this Act.
(3) The obligations set out in section 23 apply to all foreign
branches and majority owned subsidiaries of a reporting entity
and shall include—
(a) policies and procedures for sharing information within
the group for money laundering, financing of
terrorism or proliferation or any other serious
offence relating to money laundering, financing of
terrorism or proliferation purposes;
(b) the provision, at group level compliance, audit, or
money laundering, financing of terrorism or
proliferation or any other serious offence relating
to money laundering, financing of terrorism or
proliferation, functions, of customer, account, and
transaction information from branches and
subsidiaries when necessary for money laundering,
financing of terrorism and proliferation or any other
serious offence relating to money laundering,
financing of terrorism or proliferation; and
(c) adequate safeguards on the confidentiality and use
of information exchanged.
13. Section 29 of the principal Act is amended— Amendment
of section 29
(a) by the deletion of subsection (1)(b) and the substitution
therefor of the following:
(b) is related or linked to, or is to be used for, terrorism
and proliferation or any other serious offence,
relating to money laundering, financing of
terrorism or proliferation terrorist acts or by
terrorist organisations or persons who finance
terrorism or proliferation or any other serious
offence relating to money laundering, financing
of terrorism or proliferation;
 284 No. 16 of 2020] Financial Intelligence Centre (Amendment)

(b) by the deletion of subsection (4) and the substitution

therefor of the following:
(4) A reporting entity shall refrain from
carrying out a transaction which it suspects to be
related to money laundering, financing of terrorism or
proliferation or any other serious offence relating to
money laundering, financing of terrorism or
proliferation.
Amendment 14. Section 36 of the principal Act is amended—
of section 36
(a) in subsection (1) by the insertion of the words “or
proliferation” immediately after the word “terrorism”;
(b) by the insertion of the following new subsection immediately
after subsection (6):
(7) A supervisory authority shall make
available a report of its findings and recommendations
to the Centre following an inspection conducted under
this Act.
Amendment 15. Section 45 of the principal Act is amended by the deletion
of section 45
of the words “section twenty nine or thirty” and the substitution
therefor of the words “under this Act”.
Repeal and 16. The principal Act is amended by the repeal of section 49B
replacement
of section and the substitution therefor of the following:
49B

Compounding 49B. Subject to the written consent of the Director of

of offences Public Prosecutions and where a reporting entity or a person
admits that the person has committed an offence under this
Act, the Director-General may compound the offence by
collection from that person a sum of money that the Director-
General considers appropriate, but not exceeding fifty percent
of the maximum amount of the fine to which that person would
have been liable on conviction, and a person having made that
payment shall not thereafter be prosecuted in relation to the
offence so compounded.
Insertion of 17. The principal Act is amended by the insertion of the
section 49C
following section immediately after section 49B:
Financial Intelligence Centre (Amendment) [No. 16 of 2020 285

49C. (1) Without prejudice to section 49B, the Centre Administrative

or a supervisory authority may impose one or more of the sanctions
following administrative sanctions in addition to an offence
under this Act or where a person or reporting entity is in
breach of a provision of this Act which is not a criminal
offence:
(a) a caution not to repeat the conduct which led to the
non compliance of any of the provisions of this
Act;
(b) a reprimand;
(c) a directive to take remedial action or to make specific
arrangements;
(d) the restriction or suspension of certain specified
business activities;
(e) publication of a public notice of any prohibition or
requirement imposed by it under this Part and of
any rescission or variation thereof, and any such
notice may, if the Centre considers necessary,
include a statement of the reasons for the
prohibition, requirement, variation or rescission; and
(f) a financial penalty not exceeding one million penalty
units.
(2) A reporting entity or person may, within thirty days
of receipt of an administrative sanction, appeal to the High
Court against an administrative sanction imposed by the Centre
or a supervisory authority.
(3) The Centre or a supervisory authority shall consider
the following factors when determining an appropriate
administrative sanction:
(a) the nature, duration, seriousness and extent of the
relevant non-compliance;
(b) whether the reporting entity or person has previously
failed to comply with any written law;
(c) any remedial steps taken by the reporting entity or
person to prevent a recurrence of the non-
compliance; and
(d) any steps taken or to be taken against the reporting
entity or person by—
(i) another supervisory authority;
(ii) a professional association which the
reporting entity or person is a member; and
(iii) any other relevant factors, including
mitigating factors.
 286 No. 16 of 2020] Financial Intelligence Centre (Amendment)

(4) The Centre or supervisory authority shall, before

imposing an administrative sanction, give the reporting entity
or person fourteen days’ notice in writing specifying—
(a) the nature of the alleged non-compliance;
(b) the intention to impose an administrative sanction;
(c) amount or particulars of the intended administrative
sanction; and
(d) that the reporting entity or person may, in writing,
within a period specified in the notice, make
representations as to the reasons the administrative
sanction should not be imposed.
Amen d men t 18. Section 54 of the principal Act is amended by the deletion
of section 54
of subsection (1) and the substitution therefor of the following:
(1) The Centre shall implement a system for monitoring
the effectiveness of anti-money laundering and counter
financing of terrorism and proliferation or any other serious
offence related to money laundering, financing of terrorism
or proliferation by maintaining comprehensive statistics on—
(a) suspicious transaction or suspicious activity reports
received and disseminated to law enforcement
agencies;
(b) money laundering, financing of terrorism or
proliferation and any other serious offence related
to money laundering, financing of terrorism or
proliferation investigations and convictions;
(c) property frozen, seized and confiscated; and
(d) international requests for mutual legal assistance or
other cooperation.
Amendment 19. Section 55 (2)(a) of the principal Act is amended by the
of section 55
insertion of the words “or proliferation” after the word “terrorism”.
Repeal and 20. The principal Act is amended by the repeal of section 58
replacement
of section 58 and the substitution therefor of the following:
Regulations 58. (1) The Minister may, by statutory instrument, in
consultation with the Centre, make Regulations that are
necessary to give effect to the provisions of this Act.
Financial Intelligence Centre (Amendment) [No. 16 of 2020 287

(2) Despite the generality of subsection (1), the

regulations made under that subsection may—
(a) require reporting entities to establish and maintain
procedures relating to the identification of clients,
the keeping of records, the making of reports and
training;
(b) prescribe offences and penalties for contravention
of or failure to comply with the regulations made
under this Act;
(c) provide that contraventions of the regulations may
be determined summarily by a court of competent
jurisdiction;
(d) provide that in determining whether a person has
complied with the regulations, the trial court shall
take account of any relevant guidelines issued by
the Centre;
(e) provide for measures for identifying, preventing and
combating financing of terrorism or proliferation
or any other serious offence related to money
laundering, financing of terrorism or proliferation
or using non-governmental organisations in
terrorism or proliferation or serious offence,
which measures include—
(i) sustained outreach to non-governmental
organisations by relevant competent
authorities;
(ii) targeted risk based supervision or monitoring
of non-governmental organisations by
relevant competent authorities;
(iii) effective investigation and information
gathering; and
(iv) effective mechanisms for international co
operation;
(f) provide for obligations of accountable institutions;
(g) prescribe for the proportion of fines to be remitted
to the Centre by a supervisory authority following
a fine being imposed under this Act; and
(h) provide for mechanisms for certification of
compliance officers by the Centre.
 288 No. 16 of 2020] Financial Intelligence Centre (Amendment)

Amendment 21. Part II of the Schedule is amended by the deletion of

of Schedule paragraph 6(1) and the substitution therefor of the following:
Funds of 6. (1) The funds of the Centre consists of moneys that
Centre may—
(a) be appropriated to the Centre by Parliament for the
purposes of the Centre;
(b) subject to the approval of the Minister, be paid to
the Centre by way of grants or donations;
(c) be payable to, or levied by, the Centre under this
Act or any other written law; and
(d) accrue to, or vest in, the Centre, in whichever form,
whether in the course of the exercise of its
functions or otherwise.
General 22. The principal Act is amended by the deletion of the word
amendment “financial institution” wherever it appears and the substitution
therefor of the word “financial service provider”.