MEFMI and Bank of Zambia conduct training on Combating Money Laundering

MEFMI conducted a workshop on Combating Money Laundering during the period 18 – 22 September 2023 in Livingstone, Zambia, as part of its support to countries’ efforts to put in place effective AML / CFT frameworks. The workshop was organised in collaboration with the Bank of Zambia and the Financial Intelligence Centre (FIC) of Zambia.

Money laundering, financing of terrorism and proliferation of weapons of mass destruction are crimes that undermine the integrity and stability of the financial system. They also discourage foreign investment, drain resources from more productive economic activities, and threaten the stability of the broader economy. To curb the flow of laundered funds, the international community has devised control mechanisms, such as setting guidelines for appropriate Anti-Money Laundering and Combating Financing of Terrorism (AML / CFT) laws and regulations, and supervisory regimes. The Financial Action Task Force (FATF) is one body responsible for developing standards that countries should adhere to in their fight against these vices.

The FATF standards place significant obligations and responsibilities on regulatory authorities and accountable institutions. Regulatory authorities are required to put in place AML / CFT oversight frameworks, and ensure supervised entities comply and take corrective action where frameworks are not adhered to. Institutions are supposed to comply with all applicable laws and regulations, and properly manage AML / CFT risks they are exposed to. Despite the existence of guidelines, findings of mutual evaluations conducted between 2015 and 2021 in the Eastern and Southern Africa Anti-Money Laundering Group[1] (ESAAMLG) highlighted the need for improving further the effectiveness of AML / CFT systems and the level of compliance with FATF standards.

Financial sector integrity and stability issues are central to MEFMI’s work as they are rooted in its mandate to promote macroeconomic stability and growth. It is in light of these deficiencies and given that standards are continually updated to address sophisticated money-laundering schemes and developments in digital technology that MEFMI co-hosted this workshop.

A total of 90 officials from nine (9) MEFMI member countries, namely Botswana, Eswatini, Lesotho, Malawi, Mozambique, Rwanda, Uganda, Zambia and Zimbabwe, participated in the workshop. The course enhanced their knowledge of major facets of AML/CFT and the strategies that can be implemented by their institutions to reduce the risk of money laundering and financing of terrorism, such as the use of a risk-based approach, customer due diligence, record keeping, and reporting. It also provided a platform for discussion and sharing of insights on best practices and challenges regulators and/or accountable institutions face, and the methodologies that can be used to ensure compliance with international standards. MEFMI intends to offer this course regularly as part of its effort to support countries to safeguard the integrity and stability of their respective financial systems.

The course was facilitated by a team of six (6) resource persons from the region.

Prepared by Noel Mahombera and Sharon Wallett

[1] Countries in the ESAAMLAG are Angola, Botswana, Eritrea, Eswatini, Ethiopia, Kenya, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Rwanda, Seychelles, South Africa, South Sudan, Tanzania, Uganda, Zambia, and Zimbabwe.