PROHIBITION AND PREVENTION OF MONEY LAUNDERING ACT

Arrangement of Sections

   Section

PART I
PRELIMINARY

   1.   Short title

   2.   Interpretation

PART II
ANTI-MONEY LAUNDERING AUTHORITY

   3.   Constitution of Anti-Money Laundering Authority

   4.   Functions of Authority

PART III
ANTI-MONEY LAUNDERING INVESTIGATIONS UNIT

   5.   Anti-Money Laundering Investigation Unit

   6.   Functions of Unit

PART IV
MONEY LAUNDERING OFFENCES

   7.   Prohibition of money laundering

   8.   Offences committed by a body or person

   9.   Attempts, aiding and abetting or conspiring to commit an offence

   10.   Falsification of documents

   11.   Divulging information to unauthorised person

PART V
PREVENTION OF MONEY LAUNDERING

   12.    Prohibition of tipping off

   13.   Investigation of suspicious transaction reports from Centre Act

   14.    Protected disclosures Act

PART VI
SEIZURE AND FORFEITURE OF ASSETS IN RELATION TO MONEY LAUNDERING

   15.   Seizure of property

   16.   Release of Seized property

   17.   Forfeiture of property

   18.   Forfeiture of property where no proceedings or claim

   19.   Property tracking and monitoring

   20.   Property to be forfeited to State

   21.   Tampering with forfeited property

PART VII
INVESTIGATIONS, ARREST AND SEARCH

   22.   Power of arrest

   23.   Power of entry, search and seizure

PART VIII
GENERAL

   24.   Sentence for previous offenders

   25.   Extradition

   26.   Obstruction of authorised officer

   27.   Failure or refusal to disclose information or produce anything

   28.   Application of Cap. 98

   29.   Jurisdiction

   30.   General penalty

   31.   Repeal of section 22 of Narcotic and Psychotropic Substances Act

   32.   Regulations

AN ACT

to provide for the prohibition and prevention of money laundering; the constitution of the Anti-money Laundering Authority and the Anti-Money Laundering Investigations Unit; to provide for the forfeiture of property of persons convicted of money laundering; to provide for international cooperation in investigations, prosecution and other legal processes of prohibiting and preventing money laundering; and to provide for matters connected with or incidental to the foregoing.

[Am by s 2 of Act 44 of 2010.]

[9th November, 2001]

Act 14 of 2001,

Act 44 of 2010.

PART I
PRELIMINARY

1. Short title

This Act may be cited as the Prohibition and Prevention of Money Laundering Act.

2. Interpretation

In this Act, unless the context otherwise requires—

“authorised officer” means an officer authorised by the Commissioner to perform functions under this Act;

“Authority” means the Anti-Money Laundering Authority constituted under section 3;

“business transaction” means any arrangement, including opening of a bank account, between two or more persons where the purpose of the arrangement is to facilitate a transaction between the two or more persons;

“business transaction record” in relation to a business transaction, includes—

      (a)   the identification record of all the persons party to that transaction;

      (b)   a description of that transaction sufficient to identify its purpose and method of execution;

      (c)   the details of any bank account used for that transaction, including bank, branch and sort code; and

      (d)   the total value of that transaction;

“Centre” means the Financial Intelligence Centre established under the Financial Intelligence Centre;

[Ins by s 3(e) of Act 44 of 2010.]

“Commissioner” means the person appointed as Commissioner under the Narcotic Drugs and Psychotropic Substances Act;

“Court” means the subordinate court and the High Court;

“crime” means an act or omission which constitutes an offence under any written law in Zambia or any other country; and “reporting entity” has the meaning assigned to it in the Financial Intelligence Centre Act, 2010;

[Ins by s 3(e) of Act 44 of 2010.]

“financial institution” shall have the meaning assigned to it under the Banking and Financial Services Act;

“identification record” means—

      (a)   where the person is a corporate body, the details of—

      (i)   the certificate of incorporation;

      (ii)   the most recent annual return to the Supervisory Authority; or

      (b)   in any other case, sufficient documentary evidence to prove to the satisfaction of a financial institution that the person is who that person claims to be; and for these purposes “person” shall include any person who is a nominee, agent, beneficiary or principal in relation to a business transaction;

“illegal activity” means any activity, whenever or wherever carried out which under any written law in the Republic amounts to a crime;

“money laundering” means where a reasonable inference may be drawn, having regard to the objective factual circumstances, any activity by a person—

      (a)    who knows or has reason to believe that the property is the proceeds of a crime; or

      (b)   without reasonable excuse, fails to take reasonable steps to ascertain whether or not the property is proceeds of a crime; where the person—