Zambia Compliance Report

Generated 2026-09-22

Comprehensive Framework

Regulatory Overview

Regulatory Status: Dedicated crypto/VA legislation, licensing regime, active enforcement
Key Regulator(s): Bank of Zambia, Securities and Exchange Commission, Ministry of Finance and National Planning
Primary Legislation: Anti-Money Laundering and Countering the Financing of Terrorism Act, 2010 (as am, Cyber Security Act, 2025: Designates banking and finance, National Payment System Act, 2026: Enacted on April 8, 2026, but awaits minister, The National Payment System Act, 2026, when commenced, will likely impose licens, The transitional period between the National Payment Systems Act, 2007, and the, Zambia Payments Regulation Monitor | World Payments Monitor, The Cyber Security Act, 2025 designates payment gateways and core banking system, Bank of Zambia Act, 1966, Zambia Cyber Security Act, 2025, Anti‑Money Laundering Act, 2020 (AMLA 2020), Anti‑Money Laundering Act (AMLA) 2020, Income Tax Act, 2011
Travel Rule: Not adopted
Tax Reporting: Zambia's CGT Context: Zambia abolished standalone Capital Gains Tax in 1999. Instead, gains arising from the disposal of specified assets are subject to tax under the Income Tax Act. These specified assets primarily include:. Immovable property (land and buildings). Shares in unlisted companies. Application to Cryptocurrency: Cryptocurrency is not explicitly listed as one of the specified assets subject to capital gains tax under the Income Tax Act.. Implication for Investors: For individuals holding cryptocurrency as a long-term investment, the direct application of a "capital gains tax" in the traditional sense is not straightforward under current Zambian law, as it's not a specified asset.

Key Facts

aml No, not specifically for virtual assets and VASPs. Zambia's primary AML/CFT legislation, the Anti-Money Laundering and Countering of Terrorism Act, No. 13 of 2010 (and its amendments), as well as associated regulations, does not explicitly extend to the comprehensive regulation of virtual assets or the oversight of VASPs as financial institutions or Designated Non-Financial Businesses and Professions (DNFBPs). The ESAAMLG's 2019 Mutual Evaluation Report of Zambia highlighted significant gaps in this area. It noted that virtual assets were not adequately covered by the AML/CFT framework, and there was no specific licensing or registration regime for VASPs. While Zambia is committed to implementing FATF standards, the specific legal and regulatory framework for virtual assets, including the Travel Rule, is still under development or consideration. N/A. Since the specific framework for virtual assets and the Travel Rule has not been adopted, there is no effective date. N/A. Without specific legislation covering VASPs, there are no defined threshold amounts for the Travel Rule. For traditional wire transfers, the threshold amounts for originator and beneficiary information requirements would typically follow existing AML/CFT regulations. Currently, none are explicitly covered under a specific regulatory regime for virtual assets. As per the 2019 ESAAMLG MER, Zambia had not identified or defined VASPs under its AML/CFT laws, nor had it imposed AML/CFT obligations on them. Any entity operating with virtual assets in Zambia currently does so in a largely unregulated environment from an AML/CFT perspective, though the Bank of Zambia has issued warnings regarding the risks associated with cryptocurrencies. N/A. As the Travel Rule has not been formally adopted for VASPs, there are no specific technical implementation requirements. N/A for specific Travel Rule non-compliance by VASPs. Because there is no specific framework defining AML/CFT obligations for VASPs, there are no penalties directly linked to non-compliance with the Travel Rule.
custody Currently, there are no specific licenses for crypto asset custodians in Zambia. Financial institutions dealing with traditional securities or funds require licensing from the Bank of Zambia or the Securities and Exchange Commission, but these licenses do not extend to, nor are there separate licenses for, digital asset custody. The BoZ has historically advised financial institutions against dealing in crypto assets due to the lack of regulation and associated risks. Bank of Zambia Act, 1996: Governs the operations of the central bank. Banking and Financial Services Act, 2017: Regulates banks and financial institutions. Securities Act, 2016: Governs the securities market and its participants. Bank of Zambia: https://www.boz.zm/ Securities and Exchange Commission Zambia: https://sec.gov.zm/ Segregation of Client Assets Rules:
enforcement Regulator Name: Bank of Zambia (BoZ) Entity Targeted: General public and unregulated entities. Violation Type: Engaging in unregulated financial activities, potential for fraud, money laundering, and lack of consumer protection. Not recognizing virtual assets as legal tender. Penalty Amount: Not applicable (as these are warnings, not specific fines). Date: Ongoing, with multiple statements issued over the years. A significant recent statement was in May 2022. Outcome: Public awareness campaigns, repeated advisories that virtual assets are not legal tender, and that individuals engage with them at their own risk. The BoZ has emphasized that virtual assets are not regulated in Zambia and has warned against the risks involved, including fraud, price volatility, and lack of consumer protection. They have also indicated that they are exploring the possibility of a Central Bank Digital Currency (CBDC). Bank of Zambia Statement on Virtual Assets (May 2022): https://www.boz.zm/media/media_releases/2022/STATEMENT%20ON%20VIRTUAL%20ASSETS.pdf Note: This is a policy statement and warning, not an enforcement action against a specific entity. Regulator Name: Financial Intelligence Centre (FIC) Zambia Entity Targeted: General public, financial institutions (regarding their reporting obligations). Violation Type: Potential for money laundering and terrorist financing using virtual assets. Penalty Amount: Not applicable (as these are general advisories/reports).
licensing Role: The primary authority on monetary policy, financial stability, and payment systems. The BoZ has been the most vocal body regarding virtual assets, primarily issuing cautionary statements. They are also leading the charge in developing a potential regulatory framework, including exploring a regulatory sandbox. URL: Bank of Zambia Official Website Role: Responsible for regulating the capital markets. If a virtual asset were to be classified as a security, it would fall under the SEC's purview. However, no such classification or specific regulation has been issued for crypto assets by the SEC to date. URL: Securities and Exchange Commission Zambia Role: Provides overall policy direction and oversight for financial matters. Involved in the broader strategic discussions regarding digital currencies and virtual assets. URL: Ministry of Finance and National Planning National Payment Systems Act, No. 2 of 2023: Date: Enacted in 2023.
securities Zambia does not have a comprehensive, crypto-specific legal framework as of 2025–2026; the primary securities legislation is the Securities Act, administered by the Securities and Exchange Commission (SEC) of Zambia, but no dedicated virtual asset regulations have been enacted. Printing - The Laws of the Republic of Zambia Crypto-related activities may fall under existing securities laws if they qualify as "securities" under the Securities Act, but no explicit guidance on digital assets has been published by Zambian authorities. Printing - The Laws of the Republic of Zambia Licensing is theoretically possible under the Securities Act for entities dealing in securities, but no crypto-specific license type exists, and there is no public record of any crypto or digital asset entity being licensed by the Zambian SEC. Printing - The Laws of the Republic of Zambia The primary regulatory body for securities in Zambia is the Securities and Exchange Commission (SEC) of Zambia, which operates under the Ministry of Finance and National Planning; its mandate derives from the Securities Act, which is the principal law governing securities markets in the Republic of Zambia. Printing - The Laws of the Republic of Zambia The Securities Act (Chapter 354 of the Laws of Zambia) is the core legislation; it establishes the SEC, defines "securities," and sets out licensing and conduct requirements for market participants. Printing - The Laws of the Republic of Zambia The SEC of Zambia is responsible for regulating securities exchanges, licensing brokers, dealers, investment advisers, and collective investment schemes, and for enforcing securities laws; it also approves prospectuses for public offerings. Printing - The Laws of the Republic of Zambia Zambia is a member of the Financial Action Task Force (FATF) through the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), but the Securities Act itself does not incorporate FATF's 2023–2024 recommendations on virtual assets and virtual asset service providers (VASPs). Printing - The Laws of the Republic of Zambia The Bank of Zambia (BoZ), the central bank, has issued public warnings about cryptocurrencies, but BoZ's authority under the Banking and Financial Services Act does not extend to securities regulation, which remains exclusively with the SEC under the Securities Act. Printing - The Laws of the Republic of Zambia
stablecoin No Explicit Classification: The Bank of Zambia has not explicitly classified stablecoins as e-money, payment tokens, or securities under a specific stablecoin regulation. Cautious Monitoring: The BoZ has repeatedly stated it is studying and monitoring the cryptocurrency space, including stablecoins, to understand their potential risks and benefits. E-money/Payment Token: If a stablecoin were to function as a store of value and a medium of exchange, facilitating payments, it could potentially be brought under the purview of the National Payment Systems Act, 2007 (and its amendments). This Act regulates payment systems and payment service providers. The BoZ has the authority to issue directives concerning payment instruments. Security: If a stablecoin offered investment-like features, or if its backing involved assets that could be considered securities, it might potentially fall under the regulation of the Securities Act, 2016, administered by the Securities and Exchange Commission (SEC) Zambia. However, this is less likely for typical stablecoins designed for payments. Banking/Financial Service: If a stablecoin issuer were to engage in deposit-taking or other traditional banking services, they would fall under the Banking and Financial Services Act, 2017. Anti-Money Laundering (AML) / Counter-Financing of Terrorism (CFT): Regardless of classification, any entity dealing with stablecoins would be subject to Zambia's AML/CFT framework, primarily governed by the Financial Intelligence Centre Act, No. 4 of 2020. Bank of Zambia (BoZ) Act, 1996 (as amended): This act establishes the BoZ's mandate as the central bank, including currency issuance and monetary policy. National Payment Systems Act, No. 1 of 2007: Regulates payment systems and services in Zambia.
status Zambia Cyber Security Agency: Responsible for overseeing critical information infrastructure, including payment gateways and core banking systems. Bank of Zambia (BoZ): The central bank with exclusive authority over monetary policy and issuance of currency under the Bank of Zambia Act, 1966. Cyber Security Act, 2025: Designates banking and finance—including payment gateways and core banking systems—as critical information infrastructure subject to registration, data localization, annual audits, and incident-reporting obligations. Penalties for non-compliance include up to ZMW1,200,000 and/or 10 years' imprisonment. Zambia is listed in FATF/ESAAMLG enhanced follow-up, indicating ongoing scrutiny of anti-money laundering (AML) and counter-terrorism financing (CFT) measures. The Financial Intelligence Centre serves as the designated AML/CFT supervisor for Virtual Asset Service Providers (VASPs), applying FATF Recommendation 15 requirements. Payment gateways and core banking systems, potentially including those facilitating cryptocurrency transactions, must register with the Zambia Cyber Security Agency under the Cyber Security Act, 2025. No dedicated application process exists for cryptocurrency licenses as of now. Registration with the Zambia Cyber Security Agency is required for critical payment infrastructure, with annual audits and reporting obligations starting from the effective date of the Cyber Security Act, 2025. Virtual Asset Service Providers (VASPs) must comply with FATF Recommendation 15, including customer due diligence (CDD), enhanced due diligence (EDD) where necessary, and suspicious transaction reporting (STR). Record Retention & Beneficial Ownership:
tax Zambia's CGT Context: Zambia abolished standalone Capital Gains Tax in 1999. Instead, gains arising from the disposal of specified assets are subject to tax under the Income Tax Act. These specified assets primarily include: Immovable property (land and buildings) Shares in unlisted companies Application to Cryptocurrency: Cryptocurrency is not explicitly listed as one of the specified assets subject to capital gains tax under the Income Tax Act. Implication for Investors: For individuals holding cryptocurrency as a long-term investment, the direct application of a "capital gains tax" in the traditional sense is not straightforward under current Zambian law, as it's not a specified asset. Potential Recharacterization: However, if an individual or entity is frequently buying and selling cryptocurrency with the intention of making a profit (i.e., engaging in speculative trading), this activity would likely be considered a business activity, and the profits generated would be subject to income tax rather than capital gains tax. Therefore, there isn't a specific "capital gains tax rate" for cryptocurrency in Zambia. Any gains from trading or business activities would be taxed at the applicable income tax rates. Trading: Profits from buying and selling cryptocurrencies frequently with the intention of making a gain.
travel rule VASP (Virtual Asset Service Provider): As defined by FATF Recommendation 15, any natural or legal person who conducts one or more of the following activities for or on behalf of another: exchange between virtual assets and fiat currencies; exchange between one or more forms of virtual assets; transfer of virtual assets; safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets; and participation in and provision of financial services related to an issuer's offer and/or sale of a virtual asset FATF. Travel Rule: FATF Recommendation 16 (as extended by Recommendation 15) requiring VASPs to obtain, hold, and transmit originator and beneficiary information for virtual asset transfers above a threshold (typically USD/EUR 1,000) FATF. Zambia has not enacted any dedicated legislation governing cryptocurrency or digital asset travel-rule requirements as of October 2025 ZamPortal. Searches of the Zambia Gazette (2020–2025), Parliament Bills Tracker, Bank of Zambia (BoZ) Circulars Registry, SEC Zambia Regulatory Releases, and FIC Guidelines reveal no enacted VASP licensing statute, travel-rule statutory instrument, or AML/CFT directive specific to virtual assets ZamServices. No regulatory authority has been formally designated to supervise VASPs for travel-rule compliance ZamPortal. The Bank of Zambia Act No. 43 of 1996 (as amended), Banking and Financial Services Act No. 7 of 2017, Securities Act No. 41 of 2016, and Financial Intelligence Centre Act No. 46 of 2010 contain no provisions extending their scope to virtual assets ZamPortal. Critical risk context: Despite the absence of a formal framework, the BoZ 2018 Public Notice (still unrevoked) warns the public against cryptocurrency use, and commercial banks routinely deny banking services to crypto-related businesses citing this notice ZamServices. De facto operation is not feasible without banking access ZamPortal. FATF Status Update: Zambia was removed from the FATF "grey list" (Jurisdictions under Increased Monitoring) in October 2024 following the June 2024 plenary (FATF Plenary Outcomes, October 2024) FATF. However, the IMF's Country Report No. 2024/XXX (Article IV Consultation) notes that Zambia's AML/CFT framework still lacks specific provisions for virtual assets, and the FATF Mutual Evaluation Report / Follow-up Report urges implementation of Recommendation 15. Near-term regulatory action remains likely FATF. Operating Verdict: No licensing framework exists; the 2018 BoZ warning has caused commercial banks to refuse crypto-related accounts; FATF pressure makes near-term regulation probable FATF. Operating a VASP in Zambia today carries significant legal, banking-access, and reputational risk ZamPortal. No statutory instrument amending any of the above to include VASPs or travel-rule obligations has been gazetted (checked Zambia Gazette 2020–2025) ZamPortal.

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-10. View full profile