1) Forfeiture of Proceeds of Crime Act (2010)

The Act is intended to domesticate the UNCAC provisions relating to the forfeiture of
proceeds of crime by providing for the for the he confiscation of the proceeds of crime;
deprivation of any person of any proceed, benefit, or property derived from the commission
of any serious offence; facilitate the tracing of any proceeds, benefit, and property derived
from the commission of any serious offence. 1 A Public Prosecutor may apply to the court for
a forfeiture order against property that is tainted in respect of a person who has been found
guilty of a serios offence, particularly those involving the misappropriation of public funds 2.
In terms of an order involving a quantum money, such application order shall specify the
amount as guided by the court or such as the court assesses to be the value of the persons
benefit from the offence. In assessing the value of the benefits derived by a person from the
commission of an offence, the court may treat as property of the person any property that in
the opinion of the court is subject to the effective control of the person and may lift the
corporate veil to determine questions of ownership of such property3.

Section 12 of the Act provides for protection of third parties with an interest in the property,
it provides that; where an application is made for a forfeiture order against any property, a
person who claims an interest in the property may apply to the court, before the forfeiture
order is made, for a recognition of his or her interest. The court may make an order declaring
the nature, extent and value of the applicant’s interest. Where a court makes a forfeiture order
in reliance on a person’s conviction of an offence and the conviction is subsequently quashed,
the quashing of the conviction discharges the order.

2) The Prohibition and Prevention of Money Laundering Act (Amendment) Act of

2010
Overview of the Act
The Prohibition and Prevention of Money Laundering (Amendment) repeals provisions
relating to the disclosure of information of suspicion of money laundering by supervisory
authorities and reporting entities, it redefines the functions of the Anti-Money Laundering
Investigations Unit. It is to be read as one with the Prohibition and Prevention of Money
Laundering Act, 2001. It defines money laundering to mean: where a reasonable inference
may be drawn, having regard to the objective factual circumstances, any activity by a person

1
The Forfeiture of Proceeds of Crime Act, 2010, preamble.
2
Ibid Section 4
3
Ibid Section14
(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 realized
directly or indirectly, by any person from the commission 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 any illegal activity. It further defines
proceeds of crime as: property or benefit that is wholly or partly derived or realized from a
disposal or other dealing with proceeds of a crime; wholly or partly acquired proceeds of a
crime; and includes, on a proportional basis, property into which any property derived or
realized directly from the illegal activity is later converted, transformed, or intermingled, and
any income, capital or other economic gains derived or realized from the property at any time
after the crime; or any property that is derived or realized, 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.
This Act has been introduced in order to amend some provisions of the already existing
Money Laundering Act of 2001. Some of the amendments that it introduces are the
following. The title of the Act has been shortened by deleting the words, “to provide for the
disclosure of information on suspicion of money laundering activities by supervisory
authorities and reporting entities.” (Section 2) The Money Laundering Unit where it receives
a suspicious transaction report from the Centre in accordance with the Financial Intelligence
Centre Act, 2010 shall cause an investigation to be conducted where it has reason to suspect
that a person has committed or is about to commit a money laundering offense. A disclosure
made by a person in compliance with the Prohibition and Prevention of Money Laundering
(Amendment) Act is protected under the Public Interest Disclosure (Protection of Whistle-
blowers) Act, 2010.