The Financial Intelligence Centre (FIC) has reported that Zambia lost 2.8 billion dollars due to financial illicit flow in the fourth quarter of 2023.
The report indicates that FIC recorded 450 suspected transactions involving tax evasion, fraud, forgery, and money laundering involving foreign nationals.
According to the report, the newly incorporated firms under probe fronted Zambians as shareholders and directors while foreign nationals maintained control of the bank accounts.
The foreign nationals are reported to have been changing banks to avoid detection.
The firms were introducing huge payments in dollars in the Zambia financial system on the pretext that they were paying for imports with no evidence of corresponding goods being received by the importer.
Some of the companies involved were assessed for taxes by the Zambia Revenue Authority (ZRA).
By Prudence Chota