The Public Financial Management Consult is concerned with the reduction in the number and value of intelligence reports analyzed in the 2019 Financial Intelligence Centre Money Laundering and Terrorist Financing Trends Report.
In a statement issued to Money FM News, Organization Senior Economist Bright Chizonde bemoaned the reduction in the number and value of intelligence reports examined that has been attributed to unpredictable funding affecting the Centre’s ability to verify Suspicious Transactions Reports (STRs) and Spontaneous Disclosure Reports (SDRs).
“The long-awaited Financial Intelligence Centre’s 6th Money Laundering and Terrorist Financing Trends Report, for the year 2019, indicate that financial constraints limited the Centre’s investigations. The reduction in the number and value of intelligence reports analyzed has been attributed to unpredictable funding which affected the Centre’s ability to verify Suspicious Transactions Reports (STRs) and Spontaneous Disclosure Reports (SDRs). This situation is unacceptable, considering the critical role of the FIC in exposing cases of money laundering and corruption in Zambia,” he said.
Mr Chizonde said the situation is unacceptable, considering the critical role of the report in exposing cases of money laundering and corruption in the country.
He noted that despite the increase in STRs from 724 in 2018 to 748 in 2019, the Center was only able to investigate 101 cases compared to 176 in 2018.
“The Public Financial Management Consult notes that despite the increase in STRs from 724 in 2018 to 748 in 2019, the FIC was only able to investigate 101 cases compared to 176 in 2018. Consequently, the Centre disseminated only 44 intelligence reports to Law Enforcement Agencies (LEAs) with suspected losses valued at K984 million compared to K6.1 billion reported in 2018, from 80 intelligence disseminated reports because , most of the disseminations in 2019 were of low value relative to those in 2018 and related more to individuals than corporates,” Mr Chizonde said.
Mr Chizonda further observed that, the organization only managed to disseminate 44 intelligence reports to Law Enforcement Agencies with suspected losses valued at K984 million compared to K6.1 billion reported in 2018, from 80 intelligence disseminated reports.
“The Zambian general public should therefore not mistake the reduced value to mean that there has been a reduction in money laundering and corruption. In 2019, the FIC was limited by financial constraints and thus analyzed fewer and lower-valued cases involving individuals. The FIC should be adequately funded in order to improve operational efficiency,” he said.
Reduction in Intelligence Reports analysis raises concern
