Prohibition and Prevention of Money Laundering (Amendment) Act, 2010

1. This Act may be cited as the Prohibition and Prevention of Short title Money Laundering (Amendment) Act, 2010, and shall be read as one with the Prohi bition and Prevention of Money Laundering Act, Act No. 14 of 2001, in this Act referred to as the principal Act. 2001

2. The principal Act is amended in the long title by the deletion Amendment of the words “to provide for the disclosure of information on of long title suspicion of money laundering activities by supervisory authorities and reporting entities;”

3. Section two of the principal Act is amended — Amendment (a) by the deletion of the definitions “regulated institution” of sect*on 2 and “supervisory authority”; (b) by the deletion of the definition “money laundering” and the substitution therefor of the following new definition: “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 Copies of this Act can be obtainedfrom the Government Printer, P.O. Box 30136, 10101 Lusaka. Price K2,000 each. (b) without reasonable excuse, fails to take reasonable steps to ascertain whether or not the property is proceeds of a crime; where the person— (i) engages, directly or indirectly, in a transaction that involves proceeds of a crime; (ii) acquires, receives, possesses, disguises, transfers, converts, exchanges, carries, disposes, uses, removes from or brings into Zambia proceeds of a crime; or (iii) conceals, disguises or impedes the establishment, of the true nature, origin, location, movement, disposition, title of, rights with respect to, or ownership of, proceeds of crime”; (c) by the deletion of the definition “proceeds of crime” and the substitution therefor of the following new definition: “proceeds of crime” means property or benefit that “(a) wholly or partly derived or realised directly or indirectly, by any person from the commission of a crime;” (b) wholly or partly derived or realised from a disposal or other dealing with proceeds of a crime; (c) wholly or partly acquired proceeds of a crime; and includes, on a proportional basis, property into which any property derived or realised directly from the illegal activity is later converted, transformed or intermingled, and any income, capital or other economic gains derived or realised from the property at any time after the crime; or (d) any property that is derived or realised, directly or indirectly, by any person from any act or omission that occurred outside Zambia and would, if the act or omission had occurred in Zambia, have constituted a crime; Prohibition and Prevention of Money [No. 44 of 2010 619 Laundering (Amendment) (d) by the deletion of the definition “property” and the substitution therefor of the following new definition: “property” includes any real or personal property, money, things in action or other intangible or incorporeal property, whether located in Zambia or elsewhere, and includes property of corresponding value in the absence of the original illegally acquired property whose value has been determined; and (e) by the insertion, in the appropriate places, of the following new definitions: “Centre” means the Financial Intelligence Centre established under the Financial Intelligence Centre Act, 2010; “crime” means an actor 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;.

4. Section six of the principal Act is amended in subsection (D- (a) by the deletion of paragraph (a) and the substitution therefor of the following new paragraph: (a) to investigate financial and other business transactions suspected to be part of money laundering offences; (b) by the insertion of the word “and” at the end of paragraph (c); (c) by the deletion of paragraphs (d) and (e); and (d) by the re-numbering of paragraph (f) as paragraph (d).

5. The principal Act is amended by the repeal of Part V and the substitution therefor of the following new Part: Act No. 46 of2010 Act No. 46 of2010 Amendment of section 6 Repeal and replacement of Pari V PART V Prevention of Money Laundering

12. (1) A person who knows or has reason to suspect that— (a) an authorised officer has commenced, or is about to commence, an investigation under this Act and unlawfully or recklessly discloses to any other person information or any other matter which is likely to Prohibition of tipping off prejudice that investigation or proposed investigation; or (b) a disclosure has been made to an authorised officer under this Act, and unlawfully discloses to any other person information or any other matter which is likely to prejudice an investigation or proposed investigation following the disclosure; commits an offence and is liable, upon conviction, to a fine not exceeding five hundred thousand penalty units or to imprisonment for a period not exceeding five years, or to both. (2) Notwithstanding subsection (1), a legal practitioner may make a disclosure in the course of the legal practitioner’s professional duty— (a) to the legal practitioner’s client or the client’s representative in connection with the giving of advice to the client; or (b) to any person in contemplation of, or connection with and for the purpose of, any legal proceedings. (3) Subsection (2) does not apply in relation to any information or other matter which is disclosed with a view to furthering any illegal purpose.

13. The Unit shall, where it receives a suspicious transaction report from the Centre in accordance with the Financial Intelligence Centre Act, 2010, cause an investigation to be conducted where it has reason to suspect that a person has committed or is about to commit an offence under Part IV. Investigation of suspicious transaction reports from Centre Act No. of 2010 Protected 14. A disclosure made by a person in compliance with this disclosures Act shall be a protected disclosure for the purposes of the Public Act No. 4 of Interest Disclosure (Protection of Whistleblowers) Act, 2010. 2010 Repeal and 6. The principal Act is amended by the repeal of section twenty replacemnet -nine and the substitution therefor of the following: of section 29 Jurisdiction 29. (1) This Act shall have effect within as well as outside Zambia and notwithstanding where any offence is committed by any person, that person may be dealt with in respect of such offence as if it has been committed within Zambia. (2) Any proceedings against any person under this section which would be a bar to subsequent proceedings against such person for the same offence, if such offence had been committed in Zambia, shall be a bar to further proceedings against that person under any written law for the time being in force relating to the extradition of persons, in respect of the same offence outside Zambia.