Zambia should fight trade-based money laundering techniques

Written by on August 15, 2019


ZAMBIA needs to urgently develop measures that will curb trade-based money laundering techniques used in evading taxes and customs duties, Attorney General, Likando Kalaluka, has said.

Mr Kalaluka observed that trade based money laundering techniques could be used in evading taxes and customs duties as well as in the abuse of tax incentives available to exporters.

He observed that the trade finance system was being targeted by money launderers and terrorist financiers as they increasingly turned to global trade for moving illicit funds into the formal economy.

Manipulation, he said, by criminals could therefore be stopped and ultimately help the prevention of the vice in Zambia.

He was speaking during the official opening of the ongoing four day Anti-Money Laundering workshop in Lusaka.

“A complex problem like trade based money laundering which cuts across more than one sector of an economy and goes beyond the national borders requires considerable cooperation among agencies both domestically and internationally,” Mr Kalaluka said.

He said when government took action against certain methods of anti-Money laundering and other financial crimes, culprits changed their way of operation to avoid being caught, hence the need to ensure that the law is enforced effectively by authorities.

Mr Kalaluka said governments wanted laws to be effectively enforced against those involved in illicit crimes.

“The anti-money laundering authority is cognizant of the importance of cooperation in the fight against financial crimes.

“It remains committed to ensuring that collaboration among competent authorities as well as all other stakeholders in combatting trade-based money laundering in Zambia is strengthened,” he said.

Meanwhile, Attorney General Alliance, African Alliance Partnership Board Member, Markus Green, said the alliance had been building capacity to law enforcement in countries in a bid to combat transaction crimes.

Mr Green said it was pertinent to exchange knowledge and capacity build Law Enforcement Agencies to Detect, Investigate and Prosecute Money Laundering Perpetrators.

“Money Laundering poses a direct threat to economic stability. Financial crime further undermines state authority and the rule of law while squeezing out legitimate economic activity,” he said.

And Financial Intelligence Centre director general, Mary Chirwa, said money laundering crimes cuts across different institution hence the need for authorities to unite in fighting the vice.

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