Finance

Zambia: $472.5 million of transferred funds suspected of fraud

Monday, 21 September 2020 18:08
Zambia: $472.5 million of transferred funds suspected of fraud

(Ecofin Agency) - Funds transferred ($472.5 million) from the United States to Zambia between 2007 and 2017 are suspected to be the proceeds of bank fraud, according to revelations made on September 20, 2020, by the International Consortium of Investigative Journalists (ICIJ).

The information, which cites leaked documents from FinCEN, the U.S-based Financial Crimes Enforcement Network, indicates that the bulk of these funds ($462.3 million) originated from Citigroup for accounts housed within the Zambian subsidiary of South African Standard Bank Group, Stanbic Bank Zambia. Also, $11.4 million in payments made by Zambian banks to foreign correspondents are suspected of fraud. Details of the 164 transactions involving Zambia are available exclusively with the consortium's member journalists.

In total, nearly $2 trillion in international financial transactions are suspected of fraud, involving several prominent Africans or their relatives. For example, Jean-Pierre Bemba, a politician from the Democratic Republic of Congo, is cited in the report, as well as Lamine Diack, former president of the International Federation of Athletics convicted of corruption within the framework of a vast network involving Russians. Isabel dos Santos, daughter of former Angolan president José Eduardo dos Santos, is also involved. The wife of Atiku Abubakar, the former vice-president of Nigeria accused of corruption in the country and who has always denied the accusations, is also involved.

The case is discussed a lot in the USA, where the administration regularly gives itself the competence to judge financial transactions in violation of the laws and regulations in force. It is therefore difficult to understand how nearly 200,000 cases of suspected fraud reported from banks have not been subject to proper procedures.

It was also discovered that several banks operating in the United States have violated the time limits for reporting suspected fraud. Depending on the case, these institutions have between 30 and 60 days to report suspicious transactions. But for several of the banks cited, the time limit for reporting is between 136 days and even 1,206 days.

FinCEN, which gathers all these data, issued a press release, clearing itself of having made these embarrassing documents available to ICIJ. It invites U.S. justice to sanction the people who would make these revelations. But in another document, the institution acknowledges that there is a need to review the procedures for fighting money laundering in the USA and launched a call for contributions to this effect. The revelations have reopened the international debate on the need to strengthen the way financial crime is fought around the world.

In a joint statement, the Institute of International Finance (IIF) and Deloitte called for “a combination of regulatory reform, cultural change, and the deployment of new technologies to better counter the threats posed by illicit flows through the international financial system.”

Idriss Linge



 
Telecom


 
Public Management


Ecofin Agency covers the news from 9 business sectors in Africa: Public management, Finance, ICT, Agribusiness, Electricity, Mining, Oil and Gas, Comms and Laws. Ecofin Agency is also creating and management specialized medias, in paper and on the web/social networks, for institutions or African publishers.

AGENCE ECOFIN

Mediamania Sarl
Rue du Léman, 6
1201 Genève
Tél: +41 22 301 96 11

REDACTION
redaction@agenceecofin.com

Public management
Aaron AKINOCHO
Borgia KOBRI
Moutiou ADJIBI

Finance
Idriss LINGE
Walid KEFI
Chamberline MOKO

Agribusiness
Espoir OLODO

Electricity
Gwladys JOHNSON

Oil and Gas
Olivier DE SOUZA

Mining
Louis-Nino KANSOUN

ITC 
Muriel EDJO

Comms
Servan AHOUGNON

Cameroon
Brice R. MBODIAM
Sylvain ANDZONGO
Monique MAY
Julienne Rose SENDE

Togo
Fiacre E. KAKPO
Waliyullah TAJUDEEN
Séna AKODA

Niger
Sandrine GAINGNE

Gabon
Stephane BILLE
Pierre-Celestin ATANGANA

Desk
Stéphane ALIDJINOU
Souha TOURE
Vahid CODJIA
Diane ZODEHOUGAN
Hikmatu BILALI

Translation
Schadrac AKINOCHO
Mouka MEZONLIN
Firmine AÏZAN



Digital
Omar SOKHNA
Mamadou DIOP
Bacary MANE
Abdel Razak MOULIOM

Digital Marketing
Jérémie FLAUX
Geraud ACHI
Jean Christian BERNARD
Franck FOUTE

Web publishing
Bakoly RAHARISOA
Rina RAMANANDRAISOA
Hasina RAJEMISON

Development
Dominique FLAUX

 


 
REGIE COMMERCIALE
AGENCE ECOFIN
Rue du Léman, 6
1201 Genève
Tél: +41 22 301 96 11
Fax: +41 22 301 96 10

Benjamin FLAUX
bf@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72

Voir page 
Nos services
 

 










 



Ecofin Agency is a news agency for economic and sectorial information. It was created in 2010 and it website was launched in June 2011.

Please publish modules in offcanvas position.