Lusaka, 19th February 2025 – For months, the case had gripped Zambia’s financial sector and law enforcement agencies, raising complex questions about financial crime, asset seizure, and the thin line between legitimate business and illicit transactions. On February 14, 2025, the Economic and Financial Crimes Court, presided over by Judges Yangailo, Siloka, and Malata-Ononuji, delivered its highly anticipated judgment, bringing clarity to a matter that had drawn intense scrutiny.
At the Centre of it all were Nigerian nationals who presented themselves as legitimate businesspeople unfairly targeted by Zambia’s financial crime authorities. Their companies, duly registered under Zambian law, controlled multiple bank accounts through which millions of dollars flowed. But when their transactions triggered red flags, leading the Drug Enforcement Commission (DEC) to freeze their accounts, the real battle began.
The Director of Public Prosecutions (DPP) applied for the forfeiture of the seized funds, arguing that the financial activity bore the traits of money laundering. DEC investigator Patrick Chileshe Kafusha detailed how bulk deposits, third-party transfers, and a lack of credible documentation pointed to an elaborate scheme designed to disguise the origins of the funds. Crucially, despite handling over $4.6 million, the companies failed to demonstrate any meaningful business activity that would justify such transactions.
The Interested Parties, however, saw things differently. Their argument was simple: they were currency traders, handling large transactions for well-known clients, including multinational corporations. The funds, they insisted, belonged to their clients, and they were merely facilitators of cross-border financial transactions. They even pointed to a Zambian corporate consultant, a Mr. Lewis Chisenga*, who had helped them set up their businesses and navigate regulatory requirements.
But as the case progressed, cracks began to show in their case opposing the application by the DPP. The court was presented with evidence that the business addresses they provided were either misleading or incorrect, and that crucial supporting documentation was either missing or inconsistent with normal financial practices.
After weighing the evidence, the court delivered a resounding verdict in favour of the State. The judgment was undeniable: the money in question was subject to forfeiture. The court ruled that the Interested Parties had failed to demonstrate a legitimate commercial basis for the large transactions moving through their bank accounts. The financial trail, rather than establishing lawful trading activities, only deepened suspicions of money laundering.
In a particularly damning observation, the court noted that even though the companies were registered in Zambia, there were inconsistencies in business records, fictitious office addresses, and an alarming absence of tax filings or revenue declarations. Rather than confirming a legitimate business model, the paper trail reinforced suspicions of financial misconduct.
The judgment reinforced the principle that mere company registration does not legitimize questionable financial activity. The court emphasised that financial institutions and businesses must not only comply with banking regulations but also operate with transparency and accountability to prevent the abuse of Zambia’s financial system for illicit purposes.
This judgment stands as a defining precedent in Zambia’s fight against financial crime. It sends a clear warning to entities that exploit legal loopholes to conduct dubious financial transactions. More importantly, it highlights the country’s commitment to protecting its financial system from being used as a conduit for money laundering.
The case also highlights the critical role of inter-agency cooperation in financial investigations. By combining intelligence, forensic accounting, and legal enforcement, authorities were able to connect the dots, leading to a successful prosecution.
For law-abiding businesses, the message is clear: transparency matters. For those who seek to misuse Zambia’s financial infrastructure, the warning is even clearer – illicit financial dealings will not go unnoticed, and the law will take its course.
As the dust settles on this case, one thing remains certain: Zambia’s commitment to tackling financial crime has never been stronger.