Fraudsters turn to mobile money
By Thandizo Banda
THE Financial Intelligence Centre (FIC) says fraud on has surged, becoming the new frontier for illicit financial flows.
In its 11th Money Laundering and Terrorist Financing Trends Report, FIC says while banks still account for 96 per cent of the 6,136 suspicious reports filed in 2025, criminals are rapidly shifting to payment service providers, mobile money and virtual assets to evade detection.
The centre reports large cash deposits, including third-party deposits by foreigners, are being funneled through mobile and payment platforms and immediately converted into cross-border transfers to Asia, West Africa and the Western Hemisphere.
The report says in some cases, funds are disguised as equipment purchases, inter-company transfers and betting proceeds before being externalised within hours.
FIC states the trend was being driven by weak Know Your Customer (KYC) controls, use of proxy accounts and lack of biometric verification in the mobile money ecosystem.
The report calls for accelerated implementation of national biometric identity, stronger due diligence on payment service providers and tighter supervision of virtual asset service providers.
FIC is also urging law enforcement and the Bank of Zambia to act on unlicensed entities operating payment services, noting that of three firms probed in one network, only one was appropriately registered.
The centre fined non-compliant reporting entities K1.4 million in 2025 and has referred multiple mobile money-related cases for investigation.
It warns that without urgent reforms, mobile money channels risk becoming the preferred conduit for money laundering and tax crime.
