By Nation Reporter
ZAMBIA should partner with other African countries to fight illicit financial outflows in the banking sector, says former Bank of Zambia (BoZ) governor Caleb Fundanga.
Dr Fundanga said apart from that it was also important for Zambia to tighten regulations in the banking sector because of its vulnerability to such vices.
In an interview, Dr Fundanga said that by joining other African countries which had partnered with the United States to fight the illicit capital flight, the move would be helpful to Zambia as it would block all the illegal linkages.
“Africa is losing a lot of money and some of the monies being lost is probably even bigger compared the aid received.
“So it is in our best interest to plug the holes so that we do not continue with this loss of vital resources; it’s an important initiative, perhaps partnering with the US to help improve standards,” he said.
Dr. Fundanga stressed that partnerships were meant to facilitate work in preventing the actions by people taking money out of the continent.
“If you are part of the partnership and you hear that someone has taken the money to the US, perhaps the US can help you retrieve that money.
“But if we are working on our own, we do not have the capacity to pursue such criminals in some foreign countries,” he said.
Dr. Fundanga emphasised that there was need to put up strong measures in the banking sector to monitor the financial outflows.
“Most of the flows go through the financial system so I think putting up strong measures in the banking sector to identify sources of funds and report to the necessary authorities would be helpful,” he said.
Recently, seven African countries partnered with the United States to block financial linkages which cost the African continent more than US$50 billion annually.
Countries in the partnership are Burkina Faso, Senegal, Kenya, Liberia, Mauritius and Sierra Leone.